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US inflation rose 3.2% in October — a slightly lower-than-expected number that gave relief to investors and raised hopes the Federal Reserve could done with its rate-hiking campaign.

The Consumer Price Index which tracks changes in the costs of everyday goods and services  decelerated from the September’s 3.7% advance and was a tick below the 3.3% gain economists had expected, according to data by the Bureau of Labor Statistics released Tuesday.

Although still uncomfortably above the Federal Reserve’s 2% target, it was the first time since June that inflation had slowed month-over-month as gasoline prices eased and increases in housing costs slowed and stirred hopes that prices are finally headed in the right direction.

Stocks — which dropped last week after Fed Chairman Jerome Powell signaled the central bank wouldn’t be “misled by a few months of good data” as it stayed vigilant on prices — surged, with the Dow closing up nearly 500 points, or 1.4%.

The bar for further rate hikes is getting higher and higher, Wells Fargo’s chief economist Jay Bryson said on Bloomberg TV after Tuesdays report. This is a good start in that journey, but you would need to see a few more months of 0.2 before saying mission accomplished.

The shelter index that tracks housing costs rose 0.3%, the federal agency said Tuesday. While that offset a decline in the gasoline index and accounted for the majority of the CPI’s advance, it was half the pace of the prior month.

On a monthly basis, consumer prices remained unchanged at 0.4%, attributed to a 5% decline in the gasoline index.

As of Tuesday, a gallon of gas in the US averages $3.35, according to AAA, down from the $3.65 average price per gallon when September’s CPI report was released, and the $3.85 the month prior.

Core CPI a number that excludes volatile food and energy prices and serves as a closely watched gauge among policymakers for long-term trends increased to 0.3% in October, a 4.0% advance from a year ago .

Though October’s CPI report trends positively towards the Fed’s 2% inflation target, it doesn’t confirm whether the Fed is likely to push interest rates beyond their current range — between 5.25% and 5.5% — following their December policy meeting, set to take place Dec. 12 to Dec. 13.

Fed Chair Jerome Powell has kept the door open for another hike, reiterating during a hawkish speech at the International Monetary Funds policy panel in Washington, DC, last week: If it becomes appropriate to tighten policy further, we will not hesitate to do so.”

We will keep at it until the job is done, Powell added of the Feds 2% inflation goal, which the US economy hasnt seen since 2012.

Meanwhile, the CME FedWatch Tool projects a more than than 85% chance that the Fed doesn’t raise rates again this year — up from a 54% chance a month ago.

For months now central bankers have mulled one addition 25 basis point-hike before year’s end in hopes of an economic slowdown, and economists have been divided on what the Fed’s next move is.

Economists expected that the Fed was leaning towards another rate hike after a blowout September jobs report that said the US economy added 336,000 jobs during the month.

However, October’s 150,000 payroll gains showed that September’s surge in jobs was only temporary.

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Under siege in Ukraine, schools go underground to keep life as normal as possible for children

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Under siege in Ukraine, schools go underground to keep life as normal as possible for children

If you know a teacher, or you are a teacher, you’ll understand that many in the profession consider their jobs one of the best in the world, while also acknowledging it can be one of the most stressful.

Teaching in a war zone takes it to another level on both fronts.

But imagine teaching in a war zone in say the London Underground or the Paris or New York metros?

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Students learning in lessons

Well, that’s exactly what is happening in Kharkiv, Ukraine’s second largest city – a city attacked by Russia on a constant basis.

In 2023, the authorities banned children from being taught in regular school buildings here because of the threat they were under from missile strikes.

So Kharkiv city and its education department started working on a plan.

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That plan has concluded with the construction of six schools in six metro stations, teaching 4,800 children daily whose families haven’t fled the war.

Intrigued by this new educational experiment, as it’s still considered, we were told to meet at the University metro station in the centre of the city and wait to be taken to the school.

Soviet-era metro stations, and particularly the platforms, are universally grand and ornate, although Ukraine’s are slightly more modest.

A young child at school in Kharkiv's underground system
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A young child at his desk in the underground school

The school (left) and the metro system (right)
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The school (left) and the metro system (right)

Pedestrian walkways though are always crammed with florists, newspaper stands, mobile phone shops and cafes, and Kharkiv’s are no different.

What is different though is that next to the main platform entrance, an adjacent passageway has been sealed off by a white wall with three doors built into it.

We were ushered inside, past a guard and into a concourse with two desks.

Inside the classrooms in a city under siege
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Inside the classrooms in a city under siege

The classrooms are brightly decorated to try and maintain morale for the children
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The classrooms are brightly decorated to try and maintain morale for the children

In front of us, we could see a wide staircase leading to a long corridor. Above us, large, shiny silver metal tubes stretched into the distance, pumping in air from above ground.

Lining the corridor, we could see a series of white interconnecting cabins, all brightly lit, and from them, we could hear the sounds of children laughing, music, and teachers conducting class in this strange subterranean school.

Perhaps the only school in the world with one corridor.

A door to one of the classes opened, and in pairs, a class of six and seven-year-olds emerged – their teacher at the front and an assistant at the rear.

They’re heading to the bathroom for a toilet break, the staff must keep an eye on them.

If any of the children were to make it out of the school, they could easily get lost in the underground system.

The pupils are spread across seven classrooms with a mix of yellow and green desks and chairs, and walls decorated with bright pictures like rainbows, sunshine and sunflowers, to try to create a cheery atmosphere.

“At first, the children were bewildered by studying here, it felt unfamiliar to them, but interacting with each other and with their teachers helped them to adapt,” Iryna Tarasenko from Kharkiv’s education department told me.

Iryna Tarasenko from Kharkiv's education department
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Iryna Tarasenko from Kharkiv’s education department

Sky News chief correspondent Stuart Ramsay and Kharkiv education official Iryna Tarasenko
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Sky News’ Stuart Ramsay and Kharkiv education official Iryna Tarasenko

Iryna is showing me around the school. They feel it’s their way of contributing to the war effort.

She said: “In the summer of 2023, the Defence Council didn’t permit children to study in regular school buildings, so, we had to find a solution. This is our frontline – our educational frontline.”

There are of course health concerns for both the teachers and the pupils spending so much time underground, so medical examinations are done on a regular basis.

It is an opportunity for doctors and behavioural specialists to monitor the effects of this war on them.

Dmytro Mitelyov is the neurologist on duty monitoring the children’s behaviour, checking for any signs of stress – physical and mental.

He gently asks each child how they’re feeling, and asks if they have any aches and pains.

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Dmytro Mitelyov (centre), the neurologist on duty monitoring the children as they spend large parts of their days underground, speaks to a child
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Neurologist Dmytro Mitelyov (centre) monitors children as they spend large parts of their days underground

“These are children who haven’t left Kharkiv since the war began, they live in a constant state of stress, multifaceted stress caused by a range of factors. They are exposed to things they see and hear, like alarms, explosions, and they feel it all,” Dmytro told me.

“When these children grow older, all the trauma they’ve endured during their formative years can, unfortunately, leave a lasting and serious imprint on their mental health. They haven’t had a healthy, carefree childhood – the kind where they can learn, play, and feel safe as children normally would.”

As the first group’s school day ends, children from one of Kharkiv’s most bombed districts, wrap up warm before being led to the surface to catch a school bus to their old school – which was hit by a missile.

It’s still where they meet their parents for normal pick-up.

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Students eating in their classrooms in Kharkiv's metro system
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Students eating in their classrooms in Kharkiv’s metro system

We jump on the bus with them for the journey past destroyed government buildings, shopping centres and restaurants.

When the air raid suddenly sounds, I look around to see how the children and teachers on this bus will react.

They barely flinch it’s so common.

“People have, to some extent, adapted,” one of the headmistresses, Olena Nikolienko, said.

“If we see missiles coming, heaven forbid, we’ll stop near a designated shelter, following our evacuation plan, and that’s where the children will go for cover.”

Headmistresses Olena Nikolienko
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Headmistress Olena Nikolienko

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Remember, these children are safe underground at school, up here they are not.

During the bus ride, 10-year-old Alisa began quietly sobbing. Her teacher told me her grandfather was killed four months ago on the frontline, and since then she has been prone to tears.

Alisa’s teacher comforted her and told her everything would be ok.

It feels like everyone here has to carry their own sadness.

Everyone.

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‘Ukraine war will end sooner under Trump’

Parents, standing in the first snowfall of the season, greet the children as they get off the bus.

The kids run off the bus, and start throwing snowballs at each other, enjoying this precious moment.

It will be the last time they’re outside today.

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Xi Jinping says China is ‘ready to work’ with Donald Trump during last meeting with Joe Biden

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Xi Jinping says China is 'ready to work' with Donald Trump during last meeting with Joe Biden

Joe Biden has met with Xi Jinping for the last time as US president, where the Chinese leader said he is “ready to work” with Donald Trump.

Speaking at the Asia-Pacific Economic Cooperation forum in Lima, Peru, Mr Biden said the US and China’s relationship should be about “competition, not conflict”.

“We haven’t always agreed, but our conversations have always been candid and always been frank,” he said.

“We’ve never kidded one another. These conversations prevent miscalculations, and they ensure the competition between our two countries will not veer into conflict.

“We’ve been level with one another. I think that’s vital.”

Their last-ever meeting comes as president-elect Donald Trump vows to introduce blanket 60% tariffs on US imports of Chinese goods as part of a series of “America First” trade measures.

Pic: Reuters
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Pic: Reuters

But despite Mr Trump’s proposed measures, Mr Xi said his country’s goal “of a stable, healthy and sustainable China-US relationship remains unchanged”.

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“Our commitment to mutual respect, peaceful coexistence and… cooperation as principles for handling China-US relations remains unchanged,” he added.

The Chinese president then said the country is “ready to work with the new US administration to maintain communication, expand cooperation and manage differences, so as to strive for a steady transition”.

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Neither Mr Xi nor Mr Biden responded to a question about whether there were concerns about Mr Trump’s proposed tariffs.

The president-elect has also named several China hawks to his transition team, such as Senator Marco Rubio as secretary of state and Representative Mike Waltz as national security adviser.

Read more:
Team Trump: Who is in and out?

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Under Mr Biden, Washington has introduced restrictions on US investment in Chinese artificial intelligence, quantum computing and semiconductors.

Former house speaker Nancy Pelosi also visited the island of Taiwan – which China views as a breakaway province – in April 2022.

In their meeting at this time last year – which followed a surge in tensions when an alleged Chinese spy balloon was shot down over the US – both leaders said direct communication between American and Chinese military forces would be restored.

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Mike Tyson reveals he ‘almost died’ ahead of fight with YouTuber-turned-boxer Jake Paul

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Mike Tyson reveals he 'almost died' ahead of fight with YouTuber-turned-boxer Jake Paul

Former heavyweight champion Mike Tyson says the health scare in June, which forced the postponement of his boxing match with Jake Paul, almost cost him his life.

“I almost died in June,” Tyson wrote on X, adding that he “had 8 blood transfusions. Lost half my blood and 25lbs in hospital”.

The 58-year-old, who lost to the YouTuber-turned-boxer in a unanimous points decision in Texas, tweeted that the situation was far worse than people had realised.

Following Tyson’s recovery, after reportedly suffering an ulcer flareup, he reflected on the result of the fight.

“This is one of those situations when you lost but still won… no regrets to get in the ring one last time,” he said.

That contrasts with Tyson’s comments after the match in which he refused to confirm whether it would be his last fight.

“It depends on the situation,” Tyson said before suggesting a fight with Paul’s older brother, Logan Paul, who was standing near him in the ring.

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Critics argued that the revised match – which involved fewer and shortened rounds, as well as heavier gloves – fell short of entertaining.

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Paul beats Tyson by unanimous decision

Some claimed it appeared more like a glorified sparring session.

It was Tyson’s first sanctioned pro bout since 2005, when he lost to Kevin McBride and then went into retirement – only briefly reappearing for an exhibition match in 2020 against Roy Jones Jr.

Jake Paul is driven to the ring before a heavyweight boxing match against Mike Tyson, Friday, Nov. 15, 2024, in Arlington, Texas. (AP Photo/Julio Cortez)
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Jake Paul believes he can fight for a championship belt within two years. Pic: AP

Paul has plenty to prove

Paul, 27, still has plenty to prove. The social media influencer wants to be a championship fighter and compete for a championship belt within two years. “I think it could happen in the next 24 months,” Paul said.

“I truly, truly believe in my skills and my ability and my power. And the cruiserweight division is seemingly open for the taking on that timeline,” he added.

The only professional match he has lost so far has been to Tommy Fury, the less-accomplished brother of former heavyweight champion Tyson Fury.

But there are questions about when Paul will fight a contender in his prime, as opposed to former champions or mixed martial artists.

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Could Paul really take on Alvarez?

Intriguingly, in the days before his fight with Tyson, Paul mentioned super middleweight champion Canelo Alvarez, considered one of the best boxers in the world.

According to reports, the Texas bout earned Paul $40m (£31.7m) versus $20m (£15.8m) for Tyson.

Netflix said 60 million households worldwide viewed the contest on its streaming platform, and nearly 50 million tuned in to watch the undercard which saw Ireland’s Katie Taylor beat Puerto Rico’s Amanda Serrano.

Even so there were some technical glitches. More than 90,000 users reported problems on Netflix at its peak, according to the website Downdetector, which tracks outages.

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