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UK government borrowing costs have hit a 20-year high after the Bank of England confirmed its emergency bond-buying programme will end on Friday as planned.

On Wednesday morning, it said all temporary and targeted purchases of UK government bonds, known as gilts, would stop.

This has been the position throughout and has been “made absolutely clear in contact with the banks at senior levels”, the Bank said in a statement.

However, the clarification of its position did little to soothe investor nerves, with a sell-off taking 20 and 30-year gilt yields – the rate demanded to hold government debt – to their highest level since 2002.

Both exceeded 5.1% earlier on Wednesday.

The emergency 13-day bond buying programme was started to avoid “dysfunction” in the pension market which took hold amid bond market unease over UK borrowing requirements following the government’s mini-budget.

The programme is aimed at tackling the consequences of rising interest rates on government bonds, which increased the cost of holding the bonds and resulted in pension funds facing a liquidity crunch.

There had earlier been suggestions that the Bank could backtrack, however, and extend the bond-buying beyond Friday’s cut-off.

The Financial Times said the Bank had been privately telling those working in pension funds that it could be extended.

This came despite the governor, Andrew Bailey, firmly stating pension funds had “three days left… to get this done” at an event in Washington on Tuesday evening.

In its statement on Wednesday, the Bank reaffirmed it would continue to support the pension markets in other ways beyond Friday.

This would be done via the Bank’s temporary yet open-ended measure to help lenders facing liquidity issues who work with the corner of the pensions market that had experienced difficulties. The measure was announced on Monday.

The Financial Times report said those involved in derivatives needed more time to avoid the forced selling that led to the Bank’s intervention on 28 September.

Read more:
What on earth is happening in UK markets?
What are bonds and where do they fit in the mini-budget crisis?

It was revealed later in the day that the Bank accepted £1.9bn worth of offers in its daily index-linked bond buy-back operation.

It also accepted all £2.3754bn of long-dated conventional gilts which it was offered – the highest sum since the scheme began on 28 September but well below the £5bn it would have been prepared to buy.

The pound clawed back some of the losses versus the dollar incurred on Tuesday after Mr Bailey’s refusal to extend the bond-buying support beyond Friday, trading just shy of $1.11.

30-year bond yields were hovering just below their level before the Bank’s first intervention – at 4.9% – after striking the 20-year high earlier in the day.

The thinking behind the emergency bond-buying has been questioned by the Treasury Committee of MPs.

The chair of the Treasury Committee, Mel Stride, wrote to the deputy governor at the Bank on Wednesday and asked for an update on the emergency interventions, querying what further action will be required by the Bank to prevent risks to financial stability.

Mr Stride also asked how the Bank decided to expand its emergency intervention on Monday, to launch new liquidity support to lenders and start buying index linked gilts (with interest rates in line with inflation). He questioned why these interventions were not part of the original intervention announced on 28 September.

What is the Bank of England’s bond-buying programme?

The Bank signalled it is ready to increase interest rates again in November as it fights to bring inflation down to 2%. Most recent figures show inflation was at 9.9%.

Once again the Bank’s chief economist, Huw Pill, said interest rates likely need to rise.

“At present, I am still inclined to believe that a significant monetary policy response will be required to the significant macro and market news of the past few weeks.”

The Bank’s monthly financial policy summary was released on Wednesday and warned UK households will become more vulnerable to financial shocks.

“Rises in the cost of living and interest rates will increase pressure on UK household finances and make households more vulnerable to shocks,” the Bank’s Financial Policy Summary and Record said.

Further warnings on the economic health of businesses were issued: “For businesses, higher costs, lower household demand and rising interest rates will reduce earnings. Some may find it harder to repay debts.”

Households may be less impacted by rising interest rates due to being on fixed-term repayment plans and having less debt, the Bank said. Accordingly there is a reduced risk of defaulting on repayments.

“People have less debt (relative to their incomes) and the share of high loan-to-value mortgages is much lower than before the global financial crisis. This reduces the risk of them defaulting on debt and banks are now required to be flexible in their response,” the report said.

The banks are in a better position than the financial crash too and are able to help households should they fall into financial difficulty, the Bank concluded.

“The UK banking sector is substantially more resilient than before the global financial crisis, with significantly higher levels of capital and liquidity. They can continue to support households and businesses even if economic conditions get worse.”

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Ukraine’s anti-aircraft units trying to down Russian drones in Sumy as record numbers hit

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Ukraine's anti-aircraft units trying to down Russian drones in Sumy as record numbers hit

Headlights illuminate a group of soldiers smoking and drinking steaming cups of coffee on the side of a road in northeastern Ukraine.

A fine sleet on another freezing night falls on the silhouetted barrel of a Soviet-era anti-aircraft gun mounted on an ancient, battered lorry.

These are the men of a mobile air defence unit, preparing for another night of tracking and attempting to shoot out of the skies the Russian drones heading for cities and power plants across Ukraine.

We joined the units over 48 hours in the southern sector of the city of Sumy, near the border with Russia.

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Captain Serhii, of the 117th Brigade, is a commander in charge of 160 of these men in eight mobile units protecting this area of northeastern Ukraine.

Commander Serhii looking for drones on his scanner
Image:
Commander Serhii looking for drones on his scanner

We met up with him in an empty car park next to a high-rise apartment block in Sumy.

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Sitting in his 4×4 he squinted in concentration as his scanner showed a handful of drones on a flight path heading towards us from Russia.

Air raid sirens blared in the background.

He signalled for us to follow, and he sped off into the night weaving through checkpoints along empty, darkened country roads.

He had said the drone was near, but we were confused when he suddenly pulled off the road and jumped out of his cab.

Within moments the skies were lit up by mobile anti-aircraft batteries firing into the sky.

Tracers from the bullets flew over our heads and above us we could hear the monotonous sound of the drone as it passed overhead.

Searchlights reflected off a dank, dense fog that had enveloped the countryside criss-crossed in the sky as the units tried to spot the drone.

They didn’t spot or hit the drone, and slowly the sound of its motors grew dimmer and dimmer until there was silence.

“You can see the current weather conditions, it’s foggy, so we’re basically working off sound alone, as thermal imaging and other devices can’t pick them up,” Captain Serhii told me.

“A spotlight is completely pointless, the speed of these drones isn’t particularly high, so technically, we could hit them, but the weather makes it impossible,” he added.

Every night across Ukraine the tarpaulin covers are pulled off these Soviet-era anti-aircraft guns and prepared for action.

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On battered trucks they rumble into the night to take up defensive positions.

These old guns are the country’s main defence against an increasing number of drone attacks from Russia.

The units here say they mostly encounter two types of drones which are usually deployed at the same time: Gerberas and Shaheds.

Gerberas do not carry an explosive payload but instead are designed to confuse Ukraine’s air defence, while the Iranian-supplied Shahed drones carry explosives with pre-programmed targets.

One of the soldiers, Volodymyr, tracks the drones on a handheld tablet. All the men wait, watch the screen, and listen.

“They generally fly between 200-300m up to 3km,” Volodymyr tells me.

“If they’re flying lower than 300m above sea level, the radar won’t pick them up.”

The men start to gather around their anti-air battery unit as a drone flies closer towards our location.

Stuart Ramsay and Volodymyr
Image:
Stuart Ramsay and Volodymyr

The gunner then jumps onto the truck and searches for the target on a radar attached to his weapon.

He will fire when it’s within a 10km range of his position.

The night-time silence in the middle of the field is suddenly shattered by the deafening sound of firing as the gunner goes for the drone.

Then in the fields all around us other units join the attack – it’s so dark we had no idea they were even there.

It’s absolutely relentless.

Captain Serhii tells me their critical job would be made easier with more sophisticated weapons like the American-made Patriot system.

“We need a stronger, more automated air defence system that operates independently of human involvement,” he said.

“Winter is approaching, and our guys who are on duty 24/7 will face incredibly tough conditions, they aren’t made of steel, so having an automated system would be ideal.”

Anti-air unit firing at drones from their truck
Image:
Anti-aircraft unit firing at drones from their truck

He believes any political negotiations with Russia will just end badly for Ukraine.

“A frozen conflict is typically just a temporary pause, and you can’t trust [Russian President Vladimir] Putin, because any agreement made will likely work in Russia’s favour,” he told me.

“They’ll stockpile resources, more Shaheds, rockets, soldiers, even North Koreans, and then they’ll return, and they’ll come back stronger than they did in 2022.”

Read more:
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Scale of Russia’s losses in Ukraine revealed

We join another mobile unit, this time by the side of an empty road as they track another Iranian Shahed drone.

It’s flying in our direction and they’re waiting to see if it will come into range.

It does, and they too attack – firing powerful rounds at their target.

The red, orange, and yellow flashes of colour as the weapon fires light up an otherwise pitch-black sky.

In the 48-hour period we spent with the anti-aircraft units in this part of the Sumy region, Russia deployed a record number of drones into Ukraine.

Ukraine, for its part, deployed a record number of drones against Russia too, but the number is dwarfed by the Russian assault.

Night after freezing night these Ukrainian defenders, hundreds of them around this city, will man these guns.

The last line of defence – not good, but better than nothing.

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Pakistan: Satellite images show smog over Punjab visible from space – as record levels of air pollution recorded

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Pakistan: Satellite images show smog over Punjab visible from space - as record levels of air pollution recorded

Satellite images show that smog in Pakistan can be seen from space, as the country battles record levels of air pollution.

Images from NASA Worldview show the east of the country cloaked in a toxic haze, with smog also reaching into India’s northern regions and New Dehli.

Lahore, the capital of Pakistan’s Punjab region and home to 14 million people, had an air quality index of more than 400 on Tuesday morning, according to IQAir, which tracks global air quality.

Any reading above 300 is considered hazardous – anything between 0 to 50 is considered good.

Earlier in November, parts of Lahore had a reading above 1,900, marking a record high.

A satellite view of Pakistan on 10 October 2024.
Pic: NASA Worldview
Image:
No smog was seen in Punjab region on 10 October 2024.
Pic: NASA Worldview

IQAir also reported on Tuesday that the concentration of PM2.5 – microparticles that enter the bloodstream through the lungs and can cause cancer – in Lahore was more than 50 times above recommended guidelines.

The city in eastern Pakistan is often ranked as one of the worst places in the world for air pollution.

People ride on motorbikes amid smog on a road in Multan, Pakistan November 12, 2024. REUTERS/Quratulain Asim
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More than 40,000 people have been treated for respiratory ailments due to the smog.
Pic: Reuters

Regional authorities have banned most outdoor activities, ordered shops to close early, and closed schools and public spaces until 17 November in response to the air pollution.

Health officials said more than 40,000 people have already been treated for respiratory ailments, while hospitals in the region have reported an unprecedented rise in patients with eye and throat irritation and pink eye disease.

People commute on a smoggy morning in Peshawar, Pakistan, November 11, 2024. REUTERS/Fayaz Aziz
Image:
Parts of Lahore had an air quality index above 1,900 earlier in November, marking a record high.
Pic: Reuters

It comes as a UN agency warned the health of 11 million children in the Punjab region is at risk if efforts aren’t made to tackle the toxic smog.

Abdullah Fadil, UNICEF’s representative in the country, said in a statement: “Prior to these record-breaking levels of air pollution, about 12% of deaths in children under five in Pakistan were due to air pollution.

“The impact of this year’s extraordinary smog will take time to assess, but we know that doubling and tripling the amount of pollution in the air will have devastating effects, particularly on children and pregnant women.”

Several South Asian countries are engulfed by smog each winter as cold air traps dust, emissions and smoke from farm fires.

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Parts of India, Pakistan, Nepal and Bangladesh were forced to close schools and businesses last November over air pollution.

A month later, artificial rain was used in Lahore to tackle hazardous smog for the first time.

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Zhuhai: Dozens killed after man drives car into people exercising at sports centre

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Zhuhai: Dozens killed after man drives car into people exercising at sports centre

Thirty-five people have been killed and another 43 injured after a motorist deliberately drove his car into people exercising at a sports centre in the Chinese city of Zhuhai, police said.

A 62-year-old man, identified only by his family name of Fan, was detained at the centre late on Monday.

He was discovered in the car with a knife and wounds to his neck that were thought to be self-inflicted, according to a police statement.

Fan was reported to be unconscious and receiving medical care.

A motive has not been confirmed but police said a preliminary investigation found he was unhappy with the split of financial assets in his divorce.

Officers said a “number of” pedestrians were knocked down in the incident which took place on the eve of of an annual People’s Liberation Army exhibition in the southern Chinese city.

China’s president Xi Jinping has called for “all-out efforts” to treat those injured in the disaster, the country’s state media has said.

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Mr Xi also said the perpetrator should be punished in “accordance with the law”.

Meanwhile, one of the four hospitals that took in casualties said it had more than 20 injured, state media reported.

Pic: Kyodo/AP

Security officers stand guard at the gate of a sports center where a man rammed a car into people exercising in the southern Chinese city of Zhuhai, China, Nov. 11, 2024. More than 10 people died and nearly 100 were injured in the incident, and the driver was detained at the scene. (Kyodo via AP Images) ==Kyodo
Image:
Pic: Kyodo/AP

Video shared on social media showed emergency services performing CPR on people at the scene, as others were told to leave the area.

Some were shared by news blogger and dissident Li Ying, who is better known on X as Teacher Li. His account posts daily news based on user submissions.

The clips showed dozens of people lying on the sports centre’s running track, with a woman in one saying: “My foot is broken.”

Pic: Kyodo/AP

Rescue vehicles rush to a sports center where a man rammed a car into people exercising in the southern Chinese city of Zhuhai, China, Nov. 11, 2024. More than 10 people died and nearly 100 were injured in the incident, and the driver was detained at the scene. (Kyodo via AP Images) ==Kyodo
Image:
Pic: Kyodo/AP

By Tuesday morning, searches for the incident were heavily censored on Chinese social media platforms.

A search on Weibo for the sports centre only turned up a few posts, with only a couple referring to the fact that something had happened, without pictures or details.

Articles by Chinese media about the incident from Monday night were taken down.

Pic: Kyodo/AP

Security officers stand guard at the gate of a sports center where a man rammed a car into people exercising in the southern Chinese city of Zhuhai, China, Nov. 11, 2024. More than 10 people died and nearly 100 were injured in the incident, and the driver was detained at the scene. (Kyodo via AP Images) ==Kyodo
Image:
Pic: Kyodo/AP

Chinese internet censors take extra care to check social media ahead of and during major events, such as the meeting of the National People’s Congress, where the government announces its major policy initiatives for the coming year.

The sports centre for the city district of Xiangzhou regularly attracts hundreds of residents, where they can run on the track field, play soccer and take part in social dances. Following the incident, the centre announced that it would be closed until further notice.

China has seen a number of attacks in which suspects appear to target random people such as schoolchildren.

In October, a 50-year-old man was detained after he allegedly used a knife to attack children at a school in Beijing. Five people were injured.

In September, three people were killed in a knife attack in a Shanghai supermarket.

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