let s start here in the uk, where prime minister liz truss is no longer promising to increase state pensions in line with surging inflation, and has asked ministers to look for more spending cuts. two weeks ago, the prime minister said she was committed to what s known as the triple lock. that means payments rise by whatever is higher between prices, average earnings or 2.5%. however her spokesman said truss was now not making any commitments on government spending. inflation figures are out in a few hours time and expected to show its at 10 percent, whilst the figure for average earnings is just below 5.5%. joining me now is dan kemp global chief investment officer at morningstar investment management. this investment management. will be a real concern foi many this will be a real concern for many pensioners, this trust when asked about the triple lot can my colleague asked her she said she was committed to that? you are correct, it will be of great concern to pension
if gas prices keep rising. fuelling controversy. opec slashes production to boost oil prices, sparking an angry reaction from president biden. plus too broke for beauty? women around the world say they are cutting back on cosmetics so how is the industry responding? we ll hear from a top entrepreneur. we start here in the uk, where as you ve been hearing, prime minister liz truss has been presenting her plans to boost the economy in her keynote speech to the conservative party conference in birmingham. she re stated her commitment to lowering taxes just two days after being forced to abandon a pledge to cut income tax for the highest earners. markets remain nervous about the outlook for the uk s finances under ms truss s government after the mini budget statement on september 23rd that sent the pound to a record low and borrowing costs soaring. but she argues the disruption will be worth it. whenever there is change, there is disruption. and not everybody will be in f
alexjones to pay $965 million to the families of the victims of the sandy hook massacre. and in china, where the country s ruling communist party gathers for its annual congress, we ll look at whose likely to become xijinping s second in command. live from our studio in singapore. this is bbc news. it s newsday. it s six in the morning in singapore and 11 in the evening in london, where the government is battling new economic uncertainty. prime minister liz truss has told mps her strategy of cutting tax will not change. but she s also said she won t cut spending either, suggesting the government will have to borrow more. that s raised concern even among her own mps. some want her to rethink tax cuts to reassure the markets. our political editor, chris mason, reports. reporter: have you wrecked the economy, prime minister? - there are plenty of questions for liz truss at the moment, but that one gets to the crux of things. spiralling prices, interest rates climbing, the market
factors in play, demographic factors, the pandemic through a hammer in everything. i think if they say, look, here s what we know, here s what we don t know and we re doing the best we can, i think that s trust building. any one of the cross currents in the global economy now would be newsworthy and unsetting. and there are many. and coming out of this pandemic, we tried to measure the economy, is it recession, maybe not recession. we re just trying to get back to normal at this point. we re still reacting to a pandemic, and trying to figure out where we go from here. fair question about what would be normal in 2022 and going forward because i think another thing he has to address, and you talk about this, is possible we re just in a different era, that the u.s. economy and the world economy is moving to a new place where, you know, we can t expect 30 years of low, really low interest rates. i totally agree with that. i ve been writing that for some time. i have a new b
reporter: the federal reserve just made history announcing that they re raising interest rates by 3/4 of a percentage point for the second meeting in a row. we haven t seen anything like that in back to back meetings in modern fed history, but we re not in nor times. we re dealing with the worst inflation inflation prices in 40 years. inflation remains elevated due in part to russia s invasion of ukraine and very high food and energy prices. so the fed is stepping in and acting like the firefighter. they re trying to put this inflation fire out. the goal here is to raise borrowing costs and try to cool off red hot demand, and that should hopefully allow supply a chance to catch up. but you know, officials also signaled that they re not nearly done with rate hikes. they said it would, quote, will be appropriate to continue raising interest rates. and here s the problem. they re raising rates into an economy that is already showing cracks here. in the new statement today, the