this is bbc news with the latest business headlines for viewers in the uk and around the world. i'm sally bundock. take the pain! the us federal reserve hikes interest rates to their highest in m years. and warns they'll have to keep on rising. we have got to get inflation behind us. i wish there were a painless way to do that. there isn't. fed up. us stocks slump as markets bet rates will be going higher than expected, and staying there for longer all eyes now on the bank of england, as the uk braces for another hefty rise in the cost of borrowing. also coming up: plug in and take off! can battery—powered planes

clean up the aviation industry? we get airborne to find out. we start in the us — where the central bank has raised the cost of borrowing to its highest level in m years as it tries to rein in soaring prices. the federal reserve hiked its benchmark rate by three quarters of a percentage point— to a range of between 3% and 3.75%. the feds chair, jerome powell, warned there were more rises to come, but said there is no painless way to get inflation under control. households and businesses here in the uk are also braced for more expensive borrowing — with the bank of england widely expected to announce a hefty rate rise in the next few hours.

more on that in a moment. first, let's hearfrom our us business correspondent michelle fleury in new york. the message from the federal reserve unmistakable, we are here to fight inflation, this is the first time us central bank has raised interest rates and smudged in response to prices rising at the fastest pace for four decades, prices rising at the fastest pace forfour decades, move comes despite wanting the cost of controlling inflation could be a harsh economic downturn. the federal reserve chairman acknowledging the risk but defended the move of the bank is necessary to take inflation. tape inflation. if we want to set ourselves up and like the way to another period of strong labour market we have got to get inflation behind us, i wish there were a painless way to do that, there isn't.— that, there isn't. central bankers _ that, there isn't. central bankers in _ that, there isn't. central bankers in every - that, there isn't. central bankers in every country that, there isn't. central- bankers in every country with the exception of china japan are making similar assessments,

the bank of england expected to announce its seventh rate rise for the meeting on thursday, with banks and indonesia in the philippines poised for similar moves, the world bank is worried this global swing could tip the world into a recession and is calling for more co—ordinated action among central banks, an idea jerome powell was quick to pour cold water on. powell was quick to pour cold water om— water on. it's hard to talk about collaborations - water on. it's hard to talk. about collaborations where people have very different levels of interest rates, there were co—ordinated cuts and races at different times but we are all in different situations.- are all in different situations. j ., , , situations. by raising interest rates banks — situations. by raising interest rates banks are _ situations. by raising interest rates banks are making - situations. by raising interest rates banks are making up i situations. by raising interest i rates banks are making up more expensive to borrow money they hope people will spend less and this will ease upward pressure on prices the danger is if they go too far it could choke economic growth, and cause a spike with joblessness, a very real fear with the federal reserve admitting getting inflation down, well hurt.

let's go to kansas city now and speak to thomas hoenig. as president of the federal reserve bank of kansas city, he sat on the fed's rate—setting committee for two decades between 1991 to 2011. he's now with the mercatus center — a free—market think tank. your reaction to this week's's news, some thought they might go even further with a i% hike, did they do the right thing? i think they did the right thing, it was pretty much telegraphed they would do three quarters of a point, 75 basis points had they done more it would have surprised the market and they didn't want to do that but they didn't want to do that but they did it the market so there is more to come, there is going to be a slowdown with the economy which is unavoidable when raising rates this fast, and also remember, with the rate increase continued to do quantitative tightening by reducing the balance sheet, thatis reducing the balance sheet, that is a lot of stress on the

economy right now so 75 is the right number, and there is more to come. he right number, and there is more to come. ., , right number, and there is more to come. . , . ., right number, and there is more to come. . ., ., to come. he was clear about that, to come. he was clear about that. jerome _ to come. he was clear about that, jerome powell, - to come. he was clear about that, jerome powell, there i to come. he was clear about| that, jerome powell, there is more pain to low. to what extent will they be successful, the central bank what it wants to do is reduce inflation without an excessive rise in joblessness and without the us going into recession, will they succeed? i going into recession, will they succeed? ~ , going into recession, will they succeed? ~' , ., succeed? i think they will have a very difficult _ succeed? i think they will have a very difficult time _ succeed? i think they will have a very difficult time doing - a very difficult time doing both. they are going to have to raise rates at well over time reduce inflation but it also will slow the economy and i think if you consider how much they have increased rates from 25 basis points by the end of year to 4.5%, that is a huge increase in rates and that will slow the economy probably into recession and that will be necessary to bring the inflation number back down towards the 2% goal that

chairman powell talked about today. to chairman powell talked about toda . ., . , today. to what extent is the strenath today. to what extent is the strength of _ today. to what extent is the strength of the _ today. to what extent is the strength of the us - today. to what extent is the strength of the us dollar - today. to what extent is the i strength of the us dollar which is at multi—year highs against most currencies around the world at the moment cushioning the blow because there are american companies exporting a great benefit, goods coming into the us a lot cheaper, talk us through that? in into the us a lot cheaper, talk us through that?— us through that? in fact you have this — us through that? in fact you have this very _ us through that? in fact you have this very strong - us through that? in fact you | have this very strong dollar, the dollar is a benefit in terms of helping with the inflationary situation in the us, of course, elsewhere it is creating lots of pain but i think that is secondary to the federal reserve now, their goal is to get the economy to slow in the us, get inflation down, and having a strong dollar is a byproduct to that but not the primary goal. it is the consequence and not necessarily a goal. in consequence and not necessarily a coal. ., , consequence and not necessarily a oal. ., , ., consequence and not necessarily a coal. . , ., _, a goal. in a nutshell, are you worried about _ a goal. in a nutshell, are you

worried about the _ a goal. in a nutshell, are you worried about the outlook i a goal. in a nutshell, are you| worried about the outlook for the rest of the year and next? i am worried, yes, everybody would worry in terms of having a recession, ithink would worry in terms of having a recession, i think it is something us and may be much of the rest of the world has two be prepared to accept because when you are going to bring inflation down from over 8% to 2%, in history, adjust the economics of it, it's very difficult to do without also incurring a recession. i think that will be one of the challenges for the federal reserve, pressure will mount as the unemployment rate in the us rises above four or 4.5%, if inflation is still above five or 6% and unemployment is rising that will be the true test for the federal reserve because they will have lots of pressure to pivot, and if they do it too soon they will burn inflation up and they will have to start over, hope they stick

to start over, hope they stick to their plan of getting rates up to their plan of getting rates up sufficiently now, not too much. ., , ~ , up sufficiently now, not too much. . , ~ , ., much. that is the key, not too much. that is the key, not too much if, _ much. that is the key, not too much if. but — much. that is the key, not too much if, but not _ much. that is the key, not too much if, but not too _ much. that is the key, not too much if, but not too much. i much if, but not too much. thank you for being on the programme. on wall street shares closed down sharply as investors digested comments from fed chairjerome powell that suggested interest rates would be going higher than they expected and staying there for longer. let's just show you the numbers. in asia this is the reaction, things have improved asia, the japanese currency was down, you can see the dollar against again, if you look at the next board, wall street and how the day ended, the fallout despite the fact this was priced in,. victoria scholar is head of investment at the interactive investor.

in some ways for you surprised to see the sell—off on wall street, saying is, sell on the river and buy on the news. —— sell on the room and by on the news. ~ ., news. we have said when we get a rate hike _ news. we have said when we get a rate hike from _ news. we have said when we get a rate hike from a _ news. we have said when we get a rate hike from a major- a rate hike from a major central bank have seen markets rally, there was quite a bit of positive sentiment that the markets in the yesterday session ahead of that decision, what we can take from market reaction as there was a lot of volatility, we saw the volatility, we saw the volatility index sometimes known as the wall street fear gauge rallying by 3% and equity swinging between gains and losses and they ultimately closed considerably lower, it was technology heavy interest rate sensitive nasdaq at the hardest, down by i.8%. there is a tug of war going on, because on the one hand, we know interest rate increases are required to get inflation under

control, on the other hand we know if the federal reserve moves to quickly it could inadvertently bring about more economic pain. so there is a sense sometimes good news is bad news for the market and it's not as straightforward as we would expect markets to always move lower interest rate hike or as we have seen the inverse lately with interest rate increases, that markets have rallied. a complex picture at the moment also tied to risk sentiment, it is notjust interest—rate differential driving the markets this week, it is also appetite for risk, especially after those comment from putin yesterday and the escalation of tensions with ukraine. , ., , ., escalation of tensions with ukraine. , ., , ukraine. given what you 'ust said it's hard i ukraine. given what you 'ust said it's hard to i ukraine. given what you 'ust said it's hard to know i ukraine. given what you just said it's hard to know where | ukraine. given what you just l said it's hard to know where to put your money right now, some might be tempted to put it in a tin under the bed? it might be tempted to put it in a tin under the bed?— tin under the bed? it is, very conundrum _ tin under the bed? it is, very conundrum for _ tin under the bed? it is, very conundrum for investors i tin under the bed? it is, very conundrum for investors at i tin under the bed? it is, very i conundrum for investors at the moment and a real outperform

has been the us dollar which has been the us dollar which has hit fresh two—year highs against a basket of currencies, it has been rallying strongly against the japanese currency, that tends to do well when markets are more volatile but this year the yen hasn't necessarily fulfilled its role as a safe haven, gold has underperformed despite the backdrop of uncertain t so it's really the greenback that has been the major winner, this year. let's move to the uk now — where the bank of england's expected to announce another big rise in its main interest rate later today. it's under pressure to get the rate of inflation under control — atjust under io%, it's among the highest in the developed world. but higher borrowing costs will increase the burden on households and businesses already battling soaring energy bills. and they will also make things harder for the government, which is likely to have to borrow heavily to fund emergency help with energy this winter. here's our economics

correspondent andy verity. in saint corbin �*s in hertfordshire house prices have long been out of reach for most young people growing up here even when lenders were offering the cheapest mortgage rates ever seen. the cheapest mortgage rates everseen. now the cheapest mortgage rates ever seen. now with interest rates likely to rise the highest for ten years, there are few first home buyers willing to take on the huge mortgages they will need to buy here. at this local mortgage broker the best fixed—rate deals used to be as low as i.2%, deals used to be as low as i.2%, now you would be lucky to get 3.6, so anxious our existing borrowers to fix interest rates or they go up again, the lenders offering the cheapest rates can't cope with demand. , . demand. one lender service levels went _ demand. one lender service levels went up _ demand. one lender service levels went up to _ demand. one lender service levels went up to 40 - demand. one lender service | levels went up to 40 working levels went up to a0 working days to get an offer out, to get a mortgage of out is normally around ten or 15 working days. rates are changing on a daily basis, lenders are pulling product on a daily basis, give a rate

today you don't know if it will be gone tomorrow.— be gone tomorrow. after repeated _ be gone tomorrow. after repeated rises _ be gone tomorrow. after repeated rises in - be gone tomorrow. after| repeated rises in interest rates since december we have the highest official interest rates since 2008, that means it's more worthwhile saving that it has been for most of the last decade and a half, but at 2.5 to 3% highest interest rates aren't enough keep up with inflation, that means the real value of your savings is shrinking. the government emergency energy measures will curb inflation in the short—term, but because they are expected to inject £100 billion into the economy, it will add to spending overall and to inflationary pressure in the next few years. the bank of england expected to try to hit that up by continuing to raise interest rates in the next six months to more than double their current level. the verity, bbc news. george buckley is chief uk and euro area economist at the investment bank nomura.

i assume you are with the majority, you believe we are in for a half a percent rise in rates today?— for a half a percent rise in rates today? that's right and we have seen _ rates today? that's right and we have seen other - rates today? that's right and we have seen other central l we have seen other central banks raising rates even more than that, eddie royal reserve raise rates by three orders of a percent overnight, the bank of england, come from a position where interest rates were onlyjust position where interest rates were only just above position where interest rates were onlyjust above zero, 0.1% at the end of last year so the bank has come quite some way already in raising interest rates. i don't think they. they will need to continue going we see them raising interest rates notjust see them raising interest rates not just this see them raising interest rates notjust this month but in november, december, early next year, a lot more to go before we see this tightening cycle. you say more, some predict rates in the uk could be a.5% in the uk, is that where you are? ~ ., in the uk, is that where you are? ~ . ., ., , are? we are almost at a.5% with our view of _ are? we are almost at a.5% with

our view of the _ are? we are almost at a.5% with our view of the peak, _ are? we are almost at a.5% with our view of the peak, different i our view of the peak, different economists have different opinions about how far the bank should go, we have an elation problem, it is almost 10% one of the issues the bank of england faces it is not necessarily all of the economy's i'm doing, it's because of external factors like energy prices which the bank has very little control over you raise interest rates at impact on global energy, food and other prices, it will impact domestic demand that's how they intend to control inflation, by suppressing demand in pulling patient down domestically. the demand in pulling patient down domestically.— domestically. the chancellor has no control— domestically. the chancellor has no control over - domestically. the chancellor has no control over those i has no control over those factors and tomorrow we have the mini budget, help for small business announced yesterday, given how much the government is borrowing and rates could go up is borrowing and rates could go up a% or a.5% next year, how sustainable is that? it’s up 496 or a.5% next year, how sustainable is that?— sustainable is that? it's my financial markets _ sustainable is that? it's my financial markets are i sustainable is that? it's my i financial markets are thinking the bank of england could do more. the bank of the goodwill be looking at the prepared

plans for tomorrow in the mini budget, it will see a very large for school are sitting on we already saw a week ago with the energy bills package. the combination of that is an eye watering sum of money, thinking this is an extra fiscal support, to me to respond about by raising interest rates more? three quarters of a percent like the fed did overnight will be on the table. i'm not sure they'll do it but it'll be on they'll do it but it'll be on the table, the discussion not between a quarter point and a half point between half points and something more. fiifi half point between half points and something more.- half point between half points and something more. ok, we will take a deep _ and something more. ok, we will take a deep breath. _ and something more. ok, we will take a deep breath. george i take a deep breath. george berkeley, thank you. stay with us on bbc news. still to come: plug in and take off! can battery—powered planes clean up the aviation industry? benjohnson, the fastest man on earth, is flying home to canada in disgrace.

all the athletes should be clean, going into the games. i'm just happy that justice is served. it is a simple fact that, i this morning, these people were in their homes. tonight, those homes have been burnt down by serbian _ soldiers and police. all the taliban positions along here have been strengthened, presumably in case the americans invade. it's no use having a secret service which cannot preserve its own secrets against the world, and so the british government has no option but to continue this action, even after any adverse judgment in australia. concorde have crossed the atlantic faster than any plane ever before, breaking the record by six minutes.

this is bbc world news. the latest headlines: a standing ovation for president zelensky at the un general assembly as he condemns russia's invasion of ukraine. hundreds of protesters have been arrested in russia after president putin ordered a partial mobilisation to raise more soldiers to fight in ukraine. air travel has a heavy carbon footprint but the airline industry has pledged to hit net—zero carbon emissions by 2050. it's a huge technological challenge. adrienne murray reports now from norway, which has set its sights on becoming a leader in clean aviation. this model is the world's only certified electric plane. an veteran pilot held in awful is

taking the first bend.- taking the first bend. today were 51 hour _ taking the first bend. today were 51 hour and _ taking the first bend. today were 51 hour and we - taking the first bend. today were 51 hour and we need l taking the first bend. today| were 51 hour and we need to transport one hour. it can go 150 commoners per hour without losing anything. it's a very, very good feeling.- very good feeling. electric lans very good feeling. electric plans like _ very good feeling. electric plans like this _ very good feeling. electric plans like this are - very good feeling. electric plans like this are already| very good feeling. electric. plans like this are already in the skies but as you see, there are just two marker seats on board so the question is, when will the technology be ready to carry more passengers? a, will the technology be ready to carry more passengers? aha, bit carry more passengers? a bit bumpy but — carry more passengers? a bit bumpy but 0k- _ carry more passengers? a bit bumpy but ok. we _ carry more passengers? a bit bumpy but ok. we made i carry more passengers? a bit bumpy but ok. we made it. i carry more passengers? a bit l bumpy but ok. we made it. no wa ave bumpy but ok. we made it. no way pave the — bumpy but ok. we made it. no way pave the way _ bumpy but ok. we made it. no way pave the way the _ bumpy but ok. we made it. no way pave the way the battery . way pave the way the battery cars. it also wants to revolutionise the skies and electrify its our network by 20a0. using its plentiful renewable energy. flying is commonplace in this large mountainous country. but has heavy carbon footprint. the percentage _ heavy carbon footprint. the percentage of _ heavy carbon footprint. the percentage of the - heavy carbon footprint. iie: percentage of the climate emissions in the world, if to keep on travelling, we need to

cut emissions from the aircraft. cut emissions from the aircraft-— cut emissions from the aircraft. ~ ., ., ., , aircraft. wideroe zero operates man of aircraft. wideroe zero operates many of fly _ aircraft. wideroe zero operates many of fly groups _ aircraft. wideroe zero operates many of fly groups and - aircraft. wideroe zero operates many of fly groups and is i many of fly groups and is confident it will be fossil free by 20a6. confident it will be fossil free by 2046.— confident it will be fossil free by 2046. the fights are short, free by 2046. the fights are short. down _ free by 2046. the fights are short, down to _ free by 2046. the fights are short, down to 15 _ free by 2046. the fights are short, down to 15 minutes, l short, down to 15 minutes, about people in and out of the island, we have an important role to play and being that first test bed for the first introduction of new technology. deals have been struck with rolls—royce and teckno team who are building an electric 11 seater and its full personnel taxis with takeoff and landing vertically. a race is on. globally more than 300 projects are developing cleaner aircraft batteries are heavy and the range is rather limited. while licensing new technology takes time. homegrown starter is trying to bring electric seedlings to life. for local travel, air baskets on hydrogen fuel but that reality is still

way off. spurred on by norway, sweden's heart aerospace designed this to carry 30 passengers. it's backed by airlines like united and sas. this will enter service in 2028 but already and 20 36 we will start flight testing using only the batteries on board, we can fly at about 200 kilometres but we also feature this preserved hybrid system we can extend the range. hybrid system we can extend the ranue. , hybrid system we can extend the rane, , ., ., ., hybrid system we can extend the ranue. , . ., ., , range. green aviation is engine closer. range. green aviation is engine closer- in _ range. green aviation is engine closer- in a _ range. green aviation is engine closer. in a few years - range. green aviation is engine closer. in a few years we i range. green aviation is engine closer. in a few years we could | closer. in a few years we could plug in and take off. adrienne murray, bbc news, 0slo. finally, let's stay with that theme because leaders from the worlds of business, government and civil society are gathered in new york for the annual climate week — seven days of talks and events coinciding with the un general assembly. many are worried that the global energy crisis sparked by the war in ukraine will derail net—zero plans. let's speak to dr deborah

brosnan, who is a marine scientist, environmental entrepreneur and climate—risk expert. you arejoiners from you are joiners from new york so i assume you are the climate week? �* , ., so i assume you are the climate week? �* , ., week? are you? yes, i am. greetings— week? are you? yes, i am. greetings from _ week? are you? yes, i am. greetings from new - week? are you? yes, i am. greetings from new york, i week? are you? yes, i am. i greetings from new york, times square. i'm here for climate week, a celebration.- square. i'm here for climate week, a celebration. how's it auoin week, a celebration. how's it going last — week, a celebration. how's it going last year— week, a celebration. how's it going last year november i week, a celebration. how's it i going last year november cop26 cop26 in glasgow was extremely stressful trying to reach agreements and commitments to tackle the problem.— tackle the problem. climate week is different _ tackle the problem. climate week is different in - tackle the problem. climate week is different in the i tackle the problem. climate i week is different in the sense that it brings together people from all over the world, all walks of life, as you mentioned, celebrate the progress that has been made, exchange ideas and information and then amplify the call to action. it happens in new york with over 500 evidence. it is also to highlight to the un delegates the importance to

keep climate change front and centre and to start taking any action for which they are accountable for. you can't come to york without seeing delegates to climate week, seeing guests and hearing on the streets snippets of conversation on climate. the key players _ conversation on climate. the key players who _ conversation on climate. the key players who are - conversation on climate. the key players who are at the un general assembly, all the talk so far has been ukraine and the conflict there. how concerned are you that that conflict has caused us to go backwards when it comes to government commitment to their net—zero targets? commitment to their net-zero tar: ets? commitment to their net-zero taraets? . ., . commitment to their net-zero taraets? _, . .,, targets? the conflict has certainly _ targets? the conflict has certainly made _ targets? the conflict has certainly made it - targets? the conflict has certainly made it harder| targets? the conflict has i certainly made it harder for certainly made it harderfor governments to achieve net—zero but it's also brought out the fact that we in effect have eggsin fact that we in effect have eggs in our faces fact that we in effect have eggs in ourfaces because it's taken us so long to start to implement this transition to renewable energy that we've been talking about. we're going to see two different directions, one is a focus on ukraine, and governments saying we need to use fossil fuels and

at the same time countering that, we are seeing oh my gosh we didn't do enough, we have to start doing more. so we're going to see institutions, investments, even governments now starting to think about how do we hold ourselves more accountable? for instance, the norwegian sovereign wealth fund today came out and said it require all companies invests in to be net—zero by 2050 and a plan published by 20a0. in to be net-zero by 2050 and a plan published by 2040.- plan published by 2040. that's auoin plan published by 2040. that's aoian to plan published by 2040. that's going to do _ plan published by 2040. that's going to do it. _ plan published by 2040. that's going to do it, to _ plan published by 2040. that's going to do it, to talk - plan published by 2040. that's going to do it, to talk with i going to do it, to talk with the money, whether money goes is where people tend to change behaviour. quickly, we have hardly any time, the most exciting thing you've had this week? ., , . week? the most exciting thing i've week? the most exciting thing i've heard _ week? the most exciting thing i've heard about _ week? the most exciting thing i've heard about is, _ week? the most exciting thing i've heard about is, for- week? the most exciting thing i've heard about is, for me, i i've heard about is, for me, nature based solutions, the fact that people are beginning to realise that nature, forests, seagrass, what we call blue carbon, has a critical role to play in climate change and it's one that will help respond in more countries can

because that's one of our greatest assets.- greatest assets. deborah brosnan, _ greatest assets. deborah brosnan, thanks - greatest assets. deborah brosnan, thanks for i greatest assets. deborah i brosnan, thanks for staying up for us. we know it's late in new york and we hope that week goes well, what remains. i'll see you soon. that all for me. have a good day. hello, there. the weather is going to be changing through the rest of this week. but on wednesday, temperatures reached 22 degrees in surrey, but also in the northeast of scotland, where we had some sunshine for a while. towards the northwest of scotland, things were rather different, and looming large, really, on the satellite picture, is this broad band of cloud that is heading down from the northwest. it's due to a weather front, of course, and that weather front notjust bringing cloud, but this band of rain. that wetter weather is pushing further into scotland and northern ireland. and that weather front will take the rain southeastwards over the next couple of days, pushing away the warmer air ahead of it, and replacing things with more of a northwesterly breeze, bringing cooler conditions, following the rain. but the rain is still falling,

early on thursday morning, in scotland and northern ireland, heavy in places. that rain willjust trickle down in northern england, and it will get wetter here during the day, especially in the northwest of england. some rain in the afternoon, heading into wales, but ahead of the rain, midlands, much of southern and eastern england will be dry, some spells of sunshine and still quite warm air. so, we could make 22 degrees again in the south east. but following the band of rain, whilst we'll get some sunshine in scotland and northern ireland, and the winds will be quite light, it's cooler air, so temperatures will be typically 15 or 16 degrees. that band of rain, still initially rather heavy in places, willjust trickle down into the midlands and head towards the south east of england by friday morning. but we will have clearer skies following to the north, and this time, the coldest weather on friday morning will be across the northern half of the uk, much milder further south, where we still have cloud and some rain. friday could look a little different across east anglia and the south east with more cloud, some rain at times and some wetter weather likely to be here across kent and sussex. away from here, some spells of sunshine, a scattering

of some light showers, mainly because scotland and northern ireland but temperatures are typically going to be around 17 degrees on friday to end the week. now let's head into the weekend, and we could still see some rain not far away from the far south east of england, high pressure trying to build in from the atlantic, but this is what's happening in the far north by the end of the weekend, some wetter, windy weather is beginning to arrive. but for much of the weekend, it's going to be dry but rather cool, and we are going to see some sunshine from time to time. goodbye.

good morning, welcome to breakfast with charlie stayt and naga munchetty. 0ur headlines today. better access to gps and more appointments — the health secretary will set out her plan for the nhs in england, but some doctors warn the changes will do little to improve patient care. on their way home — five british captives who were held by russian—backed forces in ukraine are released. we just want to let everyone know that we are now out of the danger zone and we are on our way home to ourfamilies. we're expecting a big hike

in interest rates later, as the bank of england moves to tackle rising prices. i'll be looking at how it will impact borrowers and savers.