a couple of hours. inflation was 3.7% in the year to september — which is the same rate clocked for august. this month the us central bank held its key interest rate at its current 22—year high — as it seeks to curb price rises. last week, the ratings agency moody's lowered the outlook for the nation's credit rating to �*negative�* from stable, citing those higher interest rates not backed up by policies to reduce spending. the us treasury secretary janet yellen has pushed back — here she is speaking at the apec summit. this is a decision that i disagree with. the american economy is fundamentally strong and treasury securities remain the world's pre—eminent safe and liquid asset. we have enjoyed over the past several years a historically fast economic recovery from a deep recession, our unemployment rate is near historic lows, inflation has come down significantly and our economy grew by almost 5% in the third quarter. economy grew by almost 596 in the third quarter-— third quarter. that battle for rlobal third quarter. that battle for global economic _ third quarter. that battle for global economic dominance | third quarter. that battle for - global economic dominance continues and all eyes will be on san francisco later this week. whenjoe biden and xijinping meet at the apec trade summit. with the us and china locked in a battle for global economic dominance, plenty of countries are paying close attention to what it might mean for them. one of them is indonesia — a resource—rich, fast—growing nation, that's caught between old and new allies. from jakarta, here's our asia business correspondent, nick marsh. this is a country on the move. super high—speed rail has come to indonesia. it was built by chinese engineers and financed with chinese loans. once upon a time indonesia's largest trading partner was the united states but that train has left the station. now it is china. they were given the nod to build this over america's ally and the master train makers japan. this train is notjust the testament to chinese engineering, the fact it was chosen overjapan�*s offer is a vote of confidence in china. the truth is that countries like indonesia are hungry for infrastructure and china is more than happy to provide it. but china cannot provide everything. this is boeing's brand—new office in jakarta. irate this is boeing's brand-new office in jakarta. ~ , ., this is boeing's brand-new office in jakarta-— the i jakarta. we started meeting... the relationship — jakarta. we started meeting... the relationship goes _ jakarta. we started meeting. .. the relationship goes back— jakarta. we started meeting... the relationship goes back a _ jakarta. we started meeting... the relationship goes back a long - jakarta. we started meeting... the relationship goes back a long way. | relationship goes back a long way. indonesia is wary of china's military power and when it comes to defence, it still returns to old friends. buying commercial and military hardware.— military hardware. american companies _ military hardware. american companies including - military hardware. american companies including boeing| military hardware. american i companies including boeing get military hardware. american - companies including boeing get that this region is important to nestle next to china and india, two huge markets that american companies care deeply about. indonesia matters and indonesia is an incredible market today but we see the future is even brighter. disk today but we see the future is even briahter. �* , today but we see the future is even briahter. �* r' ,, , .,, ., brighter. ask young people though and they will _ brighter. ask young people though and they will tell _ brighter. ask young people though and they will tell you _ brighter. ask young people though and they will tell you that - brighter. ask young people though and they will tell you that their - and they will tell you that their future lies with china. these students injakarta are learning mandarin. translation: china is our neighbour and progressing fast. china will be a very powerful country in the future so it makes sense to learn chinese. china is also streets ahead when it comes to electric vehicles and in one of the world's most polluted cities, indonesians are betting on beijing. translation: our sales have been amazing. translation: our sales have been amazinu. our sales have been amazing. there are --eole our sales have been amazing. there are peeple in _ our sales have been amazing. there are people in indonesia _ our sales have been amazing. there are people in indonesia who - our sales have been amazing. there are people in indonesia who never imagined they would be able to own an electric vehicle but we can offer value for money. the world not long for american brands and products is changing. now the aspirational lifestyle is increasingly made in china. nick marsh, bbc news, jakarta. all eyes on that meeting between joe jakarta. all eyes on that meeting betweenjoe biden and xijinping. here in the uk we've had the latest results out this morning onjobs here in the uk we've had the latest results out this morning on jobs and wages. with pay rising by 7.7% on the year forjuly to september — outstripping price rises by the most for two years. but while this may herald some relief — with more money in people's pockets. it may be more down to a fall in inflation — than a rise in wages — in a jobs market that is starting to weaken. joining me now is katharine neiss chief european economist at pgim fixed income. good to have you with us. let's start with that uk jobs data. what picture does it paint right now for an economy that is still pretty fragile i think it's fair to say? the uk labour market is a bit of a bright spot really. it does continue to show resilience considering that the economy is moving sideways as we learned last week with the uk gdp data. the labour market is remaining relatively resilient although as you say, it is showing some signs of cooling. headline unemployment moved sideways at 4.2% butjob vacancies are coming off though it has to be said they still remain high. it does confirm a picture of relative resilience considering that the economy is moving sideways. what economy is moving sideways. what does that wage _ economy is moving sideways. what does that wage growth _ economy is moving sideways. what does that wage growth number tells us? because the peak inflation we were all asking for more money from our employers, some of us got it, some of us didn't. what does this figure tell us about how successful people have been, how much money that leads in their pockets? their wa . e that leads in their pockets? their wage growth _ that leads in their pockets? their wage growth numbers _ that leads in their pockets? their wage growth numbers i - that leads in their pockets? tue: " wage growth numbers i think that leads in their pockets? tte: " wage growth numbers i think are interesting, they are going to be interesting, they are going to be interesting for the bank of england. they are still too high relative to 2% inflation target but they are showing signs of coming off. mostly the number that gets quoted is the year—on—year rate telling you how wages have grown relative to this time 12 months ago, but really to get a better read on what are the near term trends in nominal wages, where things are really headed in the next couple of months, you need to look at small month on month changes and here i think you are seeing signs that nominal pay growth in the uk is starting to come off and that should give some comfort to the bank of england that yes, the economy is easing and that is helping to bring inflation back to target. helping to bring inflation back to tarret. �* ,., helping to bring inflation back to tarret. �* ., ., , helping to bring inflation back to taruet. �* ., ., , ~' target. and so that leaves the bank of england's — target. and so that leaves the bank of england's certainly _ target. and so that leaves the bank of england's certainly with - target. and so that leaves the bank of england's certainly with a - target. and so that leaves the bank of england's certainly with a lot - target. and so that leaves the bank of england's certainly with a lot to i of england's certainly with a lot to think about but perhaps no impetus right now to keep on raising rates and may be stopped to think about cutting them. let's talk about what is happening in the eu though. once again a real varied picture across the continent in terms of who is faring better when it comes to gdp growth but also that employment data in the third quarter.— in the third quarter. that's right. we not in the third quarter. that's right. we got the _ in the third quarter. that's right. we got the second _ in the third quarter. that's right. we got the second release - in the third quarter. that's right. we got the second release for. in the third quarter. that's right. i we got the second release for your area gdp which confirmed this picture of a mild contraction in the euro area economy. that weakness was pretty broad—based across the region but you do see some country level dispersion, so in particular, you see very energy intensive, a manufacturing —based economies in europe such as germany and italy doing relatively worse and economies like spain and france doing a bit better. but big picture, this is an economy that is effectively mirroring the uk and pretty much moving sideways against a backdrop of a more resilient labour market. one to watch. good to have you with us. the us treasury secretary pushing back vents that downgrade —— pushing back vents that downgrade —— pushing back against that agency downgrade. let's speak now to craig erlam, senior market analyst at oanda. that is the point, everybody keeping such a close eye on inflation and how that dictate central bank policy. how that dictate central bank oli . �* , , ,, how that dictate central bank oli , ,, ., policy. absolutely. the us has made more progress _ policy. absolutely. the us has made more progress than _ policy. absolutely. the us has made more progress than most _ policy. absolutely. the us has made more progress than most in - policy. absolutely. the us has made more progress than most in gettingl more progress than most in getting inflation back to target but i think policymakers have said, and many have said for quite a long time, getting from above 8% to 4% was always going to be relatively straightforward. getting from 4% to 2% is where the difficulties of real life. headline inflation is expected to fall from 3.72 3.3% but core inflation which is where the sticky area of inflation lies and what the fed is most concerned about is about inflation remaining at 4.1% and monthly readings have been relatively high. if we can see something lower today, that could be the thing that swings the central bank away from raising rates again at one of the next couple of meetings which markets think is a 25% chance of and maintaining rates where they are for the near future. it is a big inflation report, one of two to come before our next central bank meeting. two to come before our next central bank meeting-— two to come before our next central bank meeting. what do you make of that downgrade _ bank meeting. what do you make of that downgrade by _ bank meeting. what do you make of that downgrade by moody's - bank meeting. what do you make of that downgrade by moody's for - bank meeting. what do you make of that downgrade by moody's for the l bank meeting. what do you make of i that downgrade by moody's for the us credit rating, moving it to negative from stable? they say it's because those higher interest rates are not backed up by policies to reduce spending. that has been fundamentally the challenge, nothing new in the united states, we know that once again policymakers are having to debate spending cuts but what do you make of what it says about how quickly central banks have responded and maybe how late policymakers have been to catch up to the game? t policymakers have been to catch up to the game?— to the game? i mean, it's a difficult time _ to the game? i mean, it's a difficult time because - to the game? i mean, it's a difficult time because it's i to the game? i mean, it's a l difficult time because it's not often that we are seeing the us having to deal with high inflation at a time when the economy is slowing. the situation with inflation over the last couple of years was different pre—2008. this is not inflation backed on strength, it's packed on circumstance, the pandemic and energy prices been the primary driver and that's why congress has been so, notjust reluctant to cut spending but spending has been much higher and thatis spending has been much higher and that is part of what has encouraged moody's to downgrade growth. and at a time like this when you have so much instability in different areas, what you need is political stability and it doesn't feel like we have that in the us at the moment and that's the final nail in the coffin. you need political stability and at this moment you have a very divided congress, we have seen the rigmarole with the house speaker and it seems we are now going to the latter stages of another debt ceiling negotiation so that makes life difficult. tt negotiation so that makes life difficult. ., , ., ., difficult. it does. craig, always aood to difficult. it does. craig, always good to talk— difficult. it does. craig, always good to talk to _ difficult. it does. craig, always good to talk to you. _ difficult. it does. craig, always good to talk to you. thank - difficult. it does. craig, always| good to talk to you. thank you. news reaching us that xi jinping good to talk to you. thank you. news reaching us that xijinping has left china heading to san francisco to meet with joe left china heading to san francisco to meet withjoe biden. we will have full coverage of that meeting. we will see very soon, goodbye. from year three only a limited number are entitled. iiit from year three only a limited number are entitled.— from year three only a limited number are entitled. in year three and above. _ number are entitled. in year three and above. if— number are entitled. in year three and above, if you _ number are entitled. in year three and above, if you earn _ number are entitled. in year three and above, if you earn more - number are entitled. in year three and above, if you earn more than| and above, if you earn more than £7,400, that figure hasn't changed for a long time but you are not entitled to free school meals so we have parents on low incomes working two or three jobs to make ends meet, earning just over that amount of money and then they have to pay for school meals as well on top. tit school meals as well on top. in northern ireland the income threshold is double at £14,000 and in scotland and wales, free school meals for all primary aged children are being rolled out. in london, they currently get free meals, too. you feel a bit disappointed because if they have it, then that's not fair on us. if they have it, then that's not fair on us— if they have it, then that's not fair on us. ., ., ., ., ., fair on us. the food foundation charity says _ fair on us. the food foundation charity says the _ fair on us. the food foundation charity says the income - fair on us. the food foundation i charity says the income threshold fair on us. the food foundation - charity says the income threshold to qualify for free meals charity says the income threshold to qualify forfree meals is charity says the income threshold to qualify for free meals is too low. children say they will continue pushing for change for their health. for more stories from across the uk, head to the bbc news website. hello there, this is your update from the bbc sport centre. we'll start with tennis — and there was a debut defeat for carlos alcaraz, at the season ending atp finals . the spaniard took the first set, but ended up losing in three, against alex zverev, a two—time champion in the event. the wimbledon champion missed last year's tournament with an abdominal injury and had been suffering with foot and back issues last month, and said he found trouble coping with the indoor court in turin.... they put this course on so fast. i don't know why. i'm not going to say they should do the tournament outdoor or indoor. i don't understand about the speed of the surface because we never played on a surface because we never played on a surface like this in the year.