tv BBC News at Six BBC News September 26, 2022 6:00pm-6:31pm BST
today at six. the global markets react to the prime minister's economic plans — the cost of government borrowing shoots up and the pound plunges to an all time low against the dollar. the pound has now rallied a little, but it means the cost of many essential goods will go up for households and businesses. it's tearing our margins to shreds, we are trying our best to absorb what cost increases we can, but ultimately because of the pressure the business is under, we expect to put prices up as a result. labour outlines its own plan for the economy at its party conference and is scathing about the government's new measures. the message from financial markets was clear on friday. and this morning, that
message is even more stark. the bank of england won't hesitate to raise interest rates if needed. also on the programme. flinching from the constant shelling — the struggle for survival on ukraine's front line. in the last few minutes we have been hearing incoming and outgoing shells, every 30 seconds or so. it really doesn't stop. and science fiction made reality as nasa plans to try to divert an asteroid by crashing a rocket into it. and coming up on the bbc news channel. worcester warriors have been suspended from all competitions after failing to meet the deadline set by the rfu to provide evidenced they could continue as a viable business.
good evening and welcome to the bbc news at six. the government is under pressure tonight as the financial markets give their verdict on the government's so—called mini budget last friday. the value of the pound plunged to an all time low against the us dollar this morning though has since somewhat. and the amount it costs the government to borrow money — an essential part of its new financial plan — has risen sharply to its highest level since 2010 and analysts fear it could rise still further. there is also speculation the bank of england could soon intervene to raise interest rates again. what does all this mean for our economy and for us? our economics editor, faisal islam is here. faisal. thank you, it has been an extraordinary difficult and tense day op markets, for the british currency, and for british debt. and
thatis currency, and for british debt. and that is exemplified by the value of sterling. extraordinary thing happened, we had records good afternoon the dollar going back to the 18th century. the invention of the 18th century. the invention of the dollar, this was the lowest value of the pound reached in early trading this morning since the invention of the dollar 230 years ago. let us look at what happened just over the past few months. and you will see it going all the way down to $1.03. it recovered from that but it fell again, and that is just one of the stories of an extraordinary day in the markets today. turmoil in the markets and turmoil for britain. an early money morning plunge in the value of the pound, to depths never seen before against the dollar and a roller—coaster for the rest of the day and against other currencies too as the cost of services british government debt
surged. we services british government debt surued. ~ . . services british government debt surued. . . , services british government debt surued. . ., , ., services british government debt sured, . ., ., , ., surged. we had a budget on friday which we saw _ surged. we had a budget on friday which we saw a _ surged. we had a budget on friday which we saw a lot _ surged. we had a budget on friday which we saw a lot of _ surged. we had a budget on friday which we saw a lot of tax _ surged. we had a budget on friday which we saw a lot of tax cuts - surged. we had a budget on friday which we saw a lot of tax cuts but. which we saw a lot of tax cuts but unfortunately that means that the government will have to issue a lot more debt, and that is something which the market is finding it difficult to swallow. the uk fundamentals right now, a lot of dedebt, a recession and high inflation, and that is something that investors don't like. fear stalkinu that investors don't like. fear stalking the _ that investors don't like. fear stalking the markets - that investors don't like. fear stalking the markets and - that investors don't like. fear stalking the markets and affecting every day businesses such as this toy retailer in cheshire, a weak currency is bad for those who import goods priced in dollars.— goods priced in dollars. because of the currency _ goods priced in dollars. because of the currency fluctuations _ goods priced in dollars. because of the currency fluctuations it - goods priced in dollars. because of the currency fluctuations it is - the currency fluctuations it is tearing our margins to shreds, we are trying our best to absorb what costs increases we can, but ultimately because the pressure of the business is under we expect to have put prices up as a result. this have put prices up as a result. as concerning as the weakness of the currency is the more troubling develop omit has been the surge in the effective cost of borrowing for government. to borrow over two years costs 11.5 percent in interest up
from closer to three a week ago and under two in august. this is now notably higher than lending rates to former crisis countries such as italy and greece. when these rates go italy and greece. when these rates 9° up italy and greece. when these rates go up so do the borrowing costs of corporation, retailers costs surged today and the cost of new mortgages too. the biggest lender pulled all of its mortgages that charge a fee as a result of significant funding changes. as a result of significant funding chan . es. as a result of significant funding chances. a ~ as a result of significant funding chances. 1, ~ ., ., ., , changes. the bank of england has been keen that _ changes. the bank of england has been keen that interest _ changes. the bank of england has been keen that interest rates - changes. the bank of england has i been keen that interest rates should increase only gradually, but there is quite a good argument for looking at where you think interest rates need to be, and getting there fairly quickly. the chancellor remained tight—lipped this morning. but the most significant cause of all this markets unconvinced by the government's approach to borrowing and tax cuts outlined on friday. but by the afternoon he has promised a full set of borrowing forecasts aped
plan to debt down. a plan to get debt down. and then the bank of england said it would raise interest rates ago sievely if necessary but not until november. having recovered, the pound fell back again, the impact on markets in boardrooms and in households is far from over. it has been an extraordinary day, has the government and the bank of england done enough to take control of the situation? itrefoil england done enough to take control of the situation?— of the situation? well it is pretty clear of the situation? well it is pretty clehr from _ of the situation? well it is pretty clear from the _ of the situation? well it is pretty clear from the reaction _ of the situation? well it is pretty clear from the reaction both - of the situation? well it is pretty clear from the reaction both in l clearfrom the reaction both in currency markets but more in the borrowing market, so they set the rates that the market will charge for the government to borrow money, for the government to borrow money, for two years, five year, ten, those have been the more concerning markets for two reason, they show a sense, a lack frankly of confidence in what the government did on friday, wanted more detail about, you know how they would get debts down, how the tax cuts were going to be financed, and so that is why we got that intervention from the treasury, and from the bank of
england, to raise interest rates because helps hammer down inflation and could help protect the value of sterling too but both won't happen until november. so things have stabilised the pound remains weak, borrowing costs remain high, and we wait until november, until thailand uncertainty could lift. what wait until november, until thailand uncertainty could lift.— uncertainty could lift. what does it mean for everyone _ uncertainty could lift. what does it mean for everyone watching - uncertainty could lift. what does it mean for everyone watching at - uncertainty could lift. what does it. mean for everyone watching at home, in the terms of the value of the poundin in the terms of the value of the pound in their pocket. the charts ied ou pound in their pocket. the charts led you of— pound in their pocket. the charts led you of the — pound in their pocket. the charts led you of the borrowing - pound in their pocket. the charts led you of the borrowing costs i pound in their pocket. the charts i led you of the borrowing costs going up, they translate as a kind of baseline into the costs of mortgage borrowing and the cost of company borrowing, that is the minimum. 0n borrowing, that is the minimum. on top you have to add a certain amount of for the risks associated so what we are seeing is what many predicted, mortgages not being withdrawn from halifax, a series of banks we expect to withdraw their cheaper mortgage that, could have an ominous impact on the house market. thank you.
labour say the government has "spooked markets" with a "reckless gamble" on tax cuts paid for by increased borrowing. the shadow chancellor, rachel reeves, has been setting out their economic vision at the party's conference in liverpool. she said a labour government would bring back the 45p top rate of income tax and use the funds to boost nhs staffing numbers. 0ur political editor, chris mason, reports from liverpool. first thing this morning, and conditions on the mercy and conditions on the mersey are nearly as choppy as the markets. turbulence on the water, and in the air. as labour's candidate to be chancellor prepares to set out her party's approach to the economy... and her critique of the government's. the chancellor and prime minister resemble two desperate gamblers in a casino chasing a losing run. but here's the thing. they are not gambling with their money. they are gambling with your money. they have lost credibility, they are losing confidence, they are out of control.
and so labour see an opportunity. it's becoming clearer by the day, labour is the party of economic responsibility and the party of social justice. rachel reeves claimed she would be the first green chancellor, as she put it, putting money into the clean energy industries of tomorrow. she promised, albeit without much detail, a minimum wage that reflects the cost of living. and there was also a reference to the biggest political row of recent years. if you are remotely serious about growth, then you've got to make brexit work. so we will fix the holes in the government's patchwork brexit deal. labour says it is outraged by the conservatives budget last week but is not rejecting all of it, they back the cut in the basic rate of income tax. but they don't like the tax cut for the very highest earners. and if they were in government... the 45p top rate of income tax is coming back. they would spend the money it
brought in on the health service, to train more staff. we will implement the biggest expansion of medical school places in british history. doubling the number of medical students so our nhs has the doctor that it needs. and so to her concluding thoughts. and look at the optimism here. it's time for a government that is on your side. that government is a labour government. and be in no doubt, conference, that government is on its way! after a government decision the other day, that was the labour alternative on economy, the crucial battleground of politics. and an attempt by both of the big parties, and indeed the others, to seize a sense of credibility and responsibility. but how much difference is there between the conservative and labour plans? most of the tax cuts that we saw
announced last week, labour would keep to. but how much difference is there between the conservative and labour plans? but how much difference is there between the conservative and labour plans? is there between the conservative most of the tax cuts that we saw announced last week, labour would keep to. the reversal of the 45p rate reduction is almost neither here nor there from a public finance point of view. we assume that labour would also want to spend more on public services, so that there is certainly more to tell us about how they would fund that. back in the hall, the shadow chancellor gets a hug and a smile from her boss. tomorrow, it's his turn to try to convince us why he should one day be prime minister. we have a tussle for one of the biggest prizes of the lot, economic credibility, something that has been an achilles' heel for labour for year, accused by conservative opponent after conservative opponent of being incontinent when it comes to taxing and spending and borrowing, they, here, are trying to turn that charge round, now, on to the tories and they sense that there is a landscape changing, we have seen this afternoon, this double
dose of attempted reassurance, from first the treasury and the bank of england. lots of words that amounted to a simple sentiment. we know what we are doing, don't panic. the thing is when you speak to some conservative mps, they are not convinced the government knows what it is doing, and they fear a moment where their reputations could be mugged, neverto where their reputations could be mugged, never to return, as far as economic credibility is concerned, and that why labour here sense that the landscape both economically and politically may be changing. chris, in liverpool, thank you. there's more information on why the value of the pound has tumbled, and how it will affect you on bbc news 0nline, that's bbc.co.uk/news, or you can use the bbc news app. an executive from meta, formerly facebook, has defended in court images seen by 14—year—old molly russell before she took her own life in 2017.
the inquest into her death heard that she interacted with more than 2000 images about suicide and self harm on instagram in the six months before her death. at todays' inquest, elizabeth lagone from meta, who own instagram, said she believed the images were safe for children to see. 0ur correspondent, angus crawford, was at the coroners�* court in north london. you may find some of his report upsetting. in court, and under oath, elizabeth lagone, the head of health and well—being at meta, owners of instagram. here for a second day of questioning about what the platform did to keep molly russell safe. instagram videos from molly's account were shown to ms lagone, most too graphic to broadcast, of suicide, blood and self—harm. then, pictures molly had liked, saved and shared. again, we can't show you most of them. but here, a heart monitor. "if it stopped, would you miss me?"
a coffin with the words, "now everyone loves me." questioning ms lagone, the barrister for the family, 0liver sanders, kc, asked... "is this content safe for children to view?" ms lagone replied... "i think it's important people have a voice and express themselves. so yes, i think it is safe." he then singled out an image from molly's account. "she is sad, hurt, dying," it reads. "six weeks after seeing this, she is dead," said the barrister. "do you really think that was helpful for her? are you serious?" the coroner, andrew walker, put it to the witness, "you create the risk. you create the danger. and then you take steps to try to limit that danger." "we take our responsibilities seriously," replied ms lagone. the exchanges became heated. mr sanders raising his voice, shouting that children could not consent to being sent graphic and harmful material. at one point, ms lagone said
she was sorry that molly had seen content that violated their policies. meta held to account. and a grieving family coming face—to—face with a company they believe helped kill their daughter. angus crawford, bbc news. and if you have been affected by any of the issues raised by this story, you can find help and support from organisations listed at bbc.co.uk/actionline. the time is 18:15. our top story this evening. the government tries to calm nervousness about the uk economy as the pound plunges to an all time low against the dollar and the cost of government borrowing rises. and still to come — russians protest against being called up to fight in ukraine, an officer is shot in a recruitment centre and the kremlin admits it's made mistakes. and coming up on sportsday on bbc news channel. damage control for england. they face germany in the nations league tonight looking to avoid an historic sixth defeat in a row.
heavy fighting is continuing in ukraine's eastern donbas region, which russian forces have been trying to take for months but where ukrainian troops have been making gains in recent weeks. getting full control of donbas remains president putin's stated aim in ukraine. our international correspondent 0rla guerin and camera journalist goktay koraltan report from the city of bakhmut where residents endure constant russian shelling and the destruction of their homes. i should warn you her report contains some distressing images. shelling. inside a city under relentless attack. shelling. this is bakhmut. pounded by russian air strikes, and shelling. ukrainian forces still hold the city but the russians are at the eastern edge.
it's hard for us, says ludmila, one of the few venturing out. have you thought about leaving? i don't want to. this is my homeland, she says. i wish you well, she adds. others are desperate to go. but facing a dangerous wait. irina flinches at this all—too—familiar sound. shelling. her 14—year—old daughter, yelizaveta, is the main reason she wants to get away from her birthplace. which is now a battleground.
shells explode. as we wait with them, we lose count of the shells. what a memory for a teenager to take away from home. it's easy to see and to hear what people need to get away from. in the last few minutes, we've been hearing incoming and outgoing shells, every 30 seconds or so. it really doesn't stop. this city is in the centre of a fierce fight now between russian forces and ukrainian forces. everything is ok, irina says. trying to reassure yelizaveta. it's very hard to go, she tells me. it's only because of the war. the main thing is to save my daughter's life and to take our cats and kittens so that we all survive.
rushing in to get them out, sergei ivanof, a volunteer with a van, and a tattoo that says, "seize the day." he's been doing just that for months. evacuating front line areas. i feel happy when i see the smiles on faces and hear the thanks. it's perfect. it's why i'm here. it's like my main mission, like my life, for these people. and you are risking your life every day? i think its usual for me and usualfor any ukrainian people, any ukrainians. loading up the essentials, yelizaveta has the pet carrier and irina grabs the final bags. they are beginning a journey to the relative safety
of the capital, kyiv. nearby, we come across a victim of the morning shelling, called andrei. there's no letup. for overan hour, his body can't be moved. the living keep walking. his sister, in red, can only take cover. andrei spent his life saving others. he worked as an ambulance driver. as russia tries to take the city it appears ready to destroy it. a pattern that we have read before in the ruins. shell, kill, repeat. the russian army way.
0rla guerin, bbc news, bakhmut. russia's attempts to call up another 300,000 soldiers are being met with widespread protests — and even the shooting of an army recruitment officer. reports have circulated on social media of people with no military experience being drafted, along with others who are too old or are disabled. again, this report from our russia editor, steve rosenberg contains some distressing images. at a military draft office near moscow, the roll call begins. more russians mobilised. and on the way to fight in ukraine. and left behind, their loved ones. for many here, this war has suddenly become very real. but at this recruitment centre, the russians we spoke to said they supported the draft. i'm in the mood to fight, says dmitry, an hr manager. since we've been drafted, we have to serve. this mother says, the lads will run about a bit there.
they will lose a bit of weight, it'll be fine. not everyone is so positive. in siberia, a recruitment officer was shot and seriously wounded. the gunman reportedly incensed that his friend had been called up to fight. across russia there has been a spate of attacks on enlistment offices. more than a dozen have been set on fire since vladimir putin announced the call—up. and this is the russian republic of dagestan. protests against mobilisation. a sign of the anger in russia's poorer regions, populated by ethnic minority groups and where many feel they have been called up at a disproportionate rate. when the kremlin says, your country needs you, some russians are happy to answer president putin's call. but clearly, many are not. and in some parts of the country,
mobilisation is sparking social unrest and undermining trust in the authorities. look at the queues leaving russia. this is the land border with georgia. many russian men of military age are trying to get out. but for their sons and husbands, a very different journey starts here. destination, ukraine. and the kremlin�*s war. steve rosenberg, bbc news, moscow. a gunman has attacked a school in central russia , in one of the country's deadliest mass shootings of recent years. officials say 15 people, including 11 children, have been killed. more than 20 others have been injured. the gunman who used to be a pupil at the school in izhevsk, is thought to have killed himself after the shooting.
the peer who organised the queen's funeral has been banned from driving for six months. duke of norfolk pleaded guilty to using his phone while driving in south london in april. his lawyers had tried to save him from a ban by claiming he needed a car to organise the king's coronation. worcester warriors have been suspended from all competitions after failing to provide a suspended from all competitions afterfailing to provide a plan suspended from all competitions after failing to provide a plan for theirfuture funding. their after failing to provide a plan for their future funding. their debts of £25 million including £6 million in unpaid tax. the club had untilfive o'clock this evening to provide proof that they could cover staff payments and insurance costs. to italy now, and giorgia meloni has claimed victory in yesterday's election, and is on course to become the country's first female prime minister — and the first far right leader since world war two. most of the results are now in — this showing the chamber of deputies — the main house — with meloni's brothers of italy party clearly out in front. she will have to share power with other right—wing parties in a coalition — forming a majority with
matteo salvini's league party and former prime minister silvio berlusconi's forza italia. ms meloni has promised to tackle the cost of living crisis with tax cuts and takes a hard line on immigration. she also backs nato — promising support for ukraine — in contrast to her coalition partners — who have traditionally close ties to moscow. 0ur europe editor katya adler sent this report from rome. it's notjust the italian weather that's suddenly turned. politics changed here dramatically after yesterday's election. catapulted from political insignificance to probable next italian premier, giorgia meloni popped up at three o'clock in the morning looking like she couldn't quite believe it. normally seen as a firebrand of the far right, instead she appealed for national unity. translation: italy chose us and we will never betray it. if we are called to govern this nation, we will do
so on everybody�*s behalf, for all italians. look at the smile on giorgia meloni's face. she has waited all her political life for this moment. starting as a teenage activist, she now believes she is going to be italy's next prime minister. and this is a country she says she wants to change dramatically. to do that, she will need the support of this man, and others, in a coalition. we congratulate giorgia meloni and will work with her, said anti—immigration populist matteo salvini. this will be the most hard right italian government since the second world war. we headed to the working class district of rome where giorgia meloni grew up and got into politics. do people here believe she will help with their huge energy bills and cost of living crisis? translation: giorgia meloni came to town squares, to little places like this.
she knows how to talk to the working people. we can only hope she can keep a promise to get italy back on its feet. italy's international allies are also crossing their fingers. brussels frets about european unity and giorgia meloni's nationalist, protectionist proposals. nato needs her to maintain a hard line against russia. these are stormy times in europe, with war back on this continent. the radical changing of the political guard in italy brings hope to some but acute anxiety to others. katya adler, bbc news, rome. it sounds like a hollywood film, but in the coming hours, the american space agency, nasa, is going to crash a rocket into an asteroid. the plan is to try to alter its course. it's a test to see if something similar could be done if an asteroid was heading towards earth in the future. 0ur science editor rebecca
morelle has the details. it's a cataclysmic scenario. an asteroid headed for our planet, with the potential for mass devastation. it's happened before. a space rock wiped out the dinosaurs 66 million years ago. but now nasa is testing a way to stop any future threats. in just a few hours, a spacecraft called dart will crash into an asteroid. this space rock poses no threat, but it's a test to show how we could deal with one on a collision course with the earth. and the aim is to change its path. we're not looking at trying to destroy an asteroid, which is tremendously difficult. we arejust looking to nudge it enough, barely enough, that it misses, and that's how we protect, defend the planet against this natural hazard. the spacecraft launched at the end of last year and has travelled nearly seven million miles. now it's almost at its destination.
the target is a twin asteroid system. a larger space rock called didymos is orbited by a smaller space rock called dimorphos. it's about 150 metres. that's about 500 feet across. the spacecraft travelling at 111,000 miles an hour crashes into dimorphos, giving the asteroid a kick. this changes its speed byjust a fraction, about a millimetre per second. but this is enough to alter its orbit. and scientists can monitor this from earth to see if it has worked. thanks to the spacecraft�*s on—board cameras, we will get to watch the crash as it happens. this is part of the reason that we need to move beyond doing tests in the lab for asteroid deflection, or running models on our computers. but doing this on an actual asteroid of the relevant size, to see how these small little worlds mainly react to a deflection technique like this.
the dart mission will be the first step in finding a solution, helping us to protect our planet should a real threat come our way. rebecca morelle, bbc news. time for a look at the weather. here's matt taylor. i'm going to spite with space because tonightjupiter will be its closest to earth since 1963. if you have binoculars or telescope a good night to get the best you looking to the east but of course you need those clearer skies. you can see gaps at the moment, but shower clouds that have produced some awesome showers for some of us. that will continue across parts of scotland tonight and also the midlands. clearerskies scotland tonight and also the midlands. clearer skies away from that and temperatures dropping.
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