the full effect of higher rates has yet to be felt but households and businesses are coping... for now. plus — ripe for transformation. how developments in al are starting to bear fruit in the push for more sustainable agriculture. we are looking at the top business stories. we start in beijing — where china's president, xijinping is hosting european union leaders for their first in—person summit meeting since 2019. and there is one huge number that is looming over the talks. 400 billion euros. that's roughly the size of china's trade surplus with the eu — the difference between what they sell to europe, and what europe sells to china. european commission president ursula von der leyen says it's because of china's unfair support for its industries — which means its products are �*flooding global markets�* and threaten to undermine europe's industrial base. china says the complaint doesn't make sense when the eu stops it from buying certain sensitive technology such as advanced chips. the head of europe's business lobby group in china has told the bbc today that the talks are long overdue. we have had three years where no engagement, face to face and it is important the two sides begin to rebuild trust. have seen over the ten past week seven commissioners coming to china now a second visit from the eu commissioner, we think thatis the eu commissioner, we think that is very positive. we are not expecting too much in terms of concrete outcomes but it is important europe begins to articulate what some of the big pain points on that very lopsided trading relationship, looming chinese, enormous oil capacity in russia's war on ukraine. fabian zuleeg is chief economist at the european policy centre thinktank in brussels. good to have you on the programme. so we have outlined some of the key issues and the key sticking points between these european leaders in china. your thoughts on how this in—person meeting will go today? i this in-person meeting will go toda ? ~ , , , today? i think firstly it is very important _ today? i think firstly it is very important the - today? i think firstly it is - very important the in-person very important the in—person meeting is taking place. it has been a while. and there are many issues which have to be discussed between the eu and china. certainly the economic relationship including the trading relationship, is a very big issue for both sides. certainly for the eu, china is an important market, it may be the most important market, but also for china, it is important to have a healthy relationship. so, in principle there is a shared interest, but there are a lot of concrete sticking points, so i think this is as much about starting the dialogue again, making sure we are talking to each other, but not necessarily finding immediate resolutions to the issues which are there. when it comes to _ issues which are there. when it comes to what _ issues which are there. when it comes to what will _ issues which are there. when it comes to what will be - issues which are there. when it comes to what will be achieved | comes to what will be achieved on the european side, what do you expect because does not china sort of hold most of the cards here. we have mentioned the fact is to love on the line has been critical of china how it subsidises industry especially in the electric car market, strong language but what —— to what extent does that help you? it what -- to what extent does that help you?— what -- to what extent does that help you? it is important these issues _ that help you? it is important these issues are _ that help you? it is important these issues are put - that help you? it is important these issues are put on - that help you? it is important these issues are put on the l these issues are put on the table and that we also follow up table and that we also follow up on the principles which have been forced to very much emphasised by the european over the years, that we need a level playing field, that there needs to be free market access, also for european firms in china, and there needs to be finger pointed at concrete circumstances where we can see that actions from the chinese side are not helping their access. but it is true china has of course economic power in this relationship, but we should not forget that also for chinese firms, it is very important this relationship with the european union functions, that there is not too much friction because this also has economic impact on china at a time when it seems like the chinese economy is also not going to well. thank ou so also not going to well. thank you so much _ also not going to well. thank you so much for— also not going to well. thank you so much for your - also not going to well. thank you so much for your take i also not going to well. thank you so much for your take on all of this. dr holger schmieding is chief economist at berenberg private bank in berlin. what is your take on this and the meeting is going on, because germany is in a very difficult position economically and its car industry is at the heart of that, china is a huge competitor, what does germany want out of this relationship? of course germany out of this of course germany out of this relationship barely wants better access to the chinese market, better subsidies control in china, to have a more even playing field, a more even trading relationship. but in all this we should not forget that china is a much poorer country, actually needs commerce with europe, including germany more than vice—versa. so europe can solve confidently go to china and discuss with the chinese what the chinese had to change, in order to prove the relationship. the chinese economy is struggling by chinese standards quite badly, so it is interesting to see in the last few months that china has actually sent signals to europe that they would like to europe that they would like to patch up their commercial and to some extent political relations. d0 and to some extent political relations-— relations. do you think the osition relations. do you think the position all— relations. do you think the position all these - relations. do you think the l position all these economies are in, china you just mentioned, the week position it is on but also germany, it is expected it will stay in recession for the rest of this year means they are that much more likely to want to come up with agreements on trade and move forward as opposed to putting up barriers? germany liuht -- putting up barriers? germany light -- would _ putting up barriers? germany light -- would like _ putting up barriers? germany light -- would like to - putting up barriers? germany light -- would like to come . putting up barriers? germany| light -- would like to come up light —— would like to come up with agreements on trade but germany has been the very hard with its relationship with russia that we have to be cautious, we have to do risk our relationship, that we should not be too dependent on some single supply of some critical things. so in germany to some extent there is an awareness that in trading relationships we also have said the very big picture including national security concerns, which of course is something to be told to the chinese as well, do not even try to do something nasty to taiwan because that would lead to a disruption of trade which would hurt you, the chinese more and it would help europe. unfortunately there is a lot of politics that has to be involved in which to some extent, even for germany having led the brutal lesson the hard way now is more important than the mere commercial aspect. very briefly, mr silva has been to germany that relationship between brazil and germany very porn, the leadership summit is happening and was right now and it was hoping the eu and that would come up with a trade agreement there but it is looking like that will not happen? it looking like that will not happen?— looking like that will not hauen? ,, .,�* looking like that will not hauen? ,y .,�* ., happen? it probably won't have an hour but _ happen? it probably won't have an hour but there _ happen? it probably won't have an hour but there is _ happen? it probably won't have an hour but there is a _ an hour but there is a possibility it could start after the new argentinian promise to takes over because there is this political uncertainty about the position argentina major stumbling block in having a major trade deal between germany and latin america would be a great help in the european strategy of de— risking its chinese dependence. it is so fascinating. good to see you. thank you. to the uk now — where the bank of england has warned the full effect of rising interest rates has yet to be felt in the economy — but that households and businesses are coping so far. in its latest financial stability report — the bank says five million households have seen their mortgage payments jump already — and another 5 million will face a rise by 2026. some have fallen behind on payments but it doesn't expect the problem to reach the record levels seen in 2008. the fuller effect of interest rates being high is yet to come through, we remain vigilant of financial stability risk that might arise. so far uk households and businesses as a whole the to the impact of high and more volatile rate stop focusing specifically on households, finance has remained stretched by the high cost of, as part of this effect, mortgage debt servicing permits have risen and will continue to do so over the coming year. we have also seen an increase in arrears for borrowers, this applies to own by and buy to let mortgage arrears as well as unsecured consumer credit. some buy to let landlords have passed on the higher cost to renters, however, in spite of this, arrears are low relative to the historic averages. while we expect them to increase mortgage arrears are likely to stay well below the 2008 peak. joshua mahony is chief market analyst at scope markets here in london. when the financial stability report is out in the uk, it is a big moment, markets will be analysing every good, give us your take on what this means going forward, interest rates uk, next year? we going forward, interest rates uk, next year?— going forward, interest rates uk, next year? we have come into 2023 — uk, next year? we have come into 2023 against _ uk, next year? we have come into 2023 against the - uk, next year? we have come| into 2023 against the backdrop of the bank of england and imf really warning the uk would be the problem child of europe and certainly the developed world. that has not necessarily happens, it is the job of the bank of england to warn of the potential dangers going forward, and of course when you raise interest rates by the degree that they have, there are going to be risks, things have not actually played out in that way. certainly he has alluded somewhat that package there to the fact that really a lot of this has come down to in terms of housing arrears, has come down to the buyer to let sector, the ability to shift onto interest only for homeowners has allowed some wiggle room in the face of higher interest rates, that is not necessarily afforded to people already on such mortgages, and therefore you are more likely to see arrears on that front. it is going to be very interesting as we move into 2020 four and faced by pressure from the government or the bank of england to start cutting interest rates, because the cost of borrowing is now so high and we see the fear of course that more and more people have to shift onto more expensive mortgages and what that might do in terms of future spending habits. i think the pressure will be on the bank of england to cut as soon as possible stop what is your take on markets beating the federal reserve will start to cut rates in march next year, do markets have that right? this is the big theme within markets at the moment because if you look over the course of the past month, everything has been built on this idea the federal reserve will cut earlier and they will cut more often. next year they are expecting to see 125 basis points of cuts, that is around five rate cuts next year, starting in march, i think they are getting a little bit carried away, us inflation is still relative —— relatively elevated, i think we will largely get back to target in the april time of next year but the april time of next year but the economy is relatively strong and i think there is a big difference between what is happening in the eurozone where the economy is weak and inflation is at two point 4% and the us with the economy is strong and inflation remains above the 3% mark. there is potential for volatility in markets as they reprice towards potentially less optimistic outcome. thank you very much indeed, jaushua. to the us now where the bosses of wall street's banking giants are trying to fend off planned new rules to make them keep more cash in reserve to prevent a repeat of the 2008 financial crisis. they have told congress it could mean less money to lend to american consumers and businesses and more expensive loans. erin delmore has been following the story in new york. regulators say the new rules are needed to make sure banks have sufficient resources to pay their debts in order to protect the system in a crisis. 0n capitol hill wednesday eight us bank ceo said that is unnecessary and issued a warning that new regulations would hurt the economy and credit markets.— would hurt the economy and credit markets. the rule would have predictable _ credit markets. the rule would have predictable and _ credit markets. the rule would have predictable and harmful l have predictable and harmful outcomes to the economy, markets — outcomes to the economy, markets and business of all sizes — markets and business of all sizes and american households, and ways— sizes and american households, and ways the reserve has not studied. _ and ways the reserve has not studied, completed or shared. the hearing as part of the senate banking committee �*s oversight of big banks and what year it has been, regional bank failures including silicon valley bank and signature bank dominated the early part of the year, the ceo said wednesday the industry is on steady footing that large banks like there's helped stabilise the industry after early 2023 failures. the hearing is no opportunity to win favour on capitol hill, especially from moderate democratic senators, but the real audience as the regulator is responsible to the final language and implementation of the rule stop. erin delmore, bbc news. around the world and across the uk, this is bbc news. this is the latest tactic in the fight against crime. these officers are already advanced motorcyclists. now they have extra training to prepare them for all off—road conditions. much lighter than i'll road bikes. _ much lighter than i'll road bikes. a _ much lighter than i'll road bikes, a small engine, more manoeuvrable off—road as well. the tyres — manoeuvrable off—road as well. the tyres are such more gripping, flawed judgement off—road you can afford more traction— off—road you can afford more traction on grass and gravel. off-road _ traction on grass and gravel. 0ff—road bikes were used by off—road bikes were used by some forces but this is a first for the thames valley. it will give officers the ability to disrupt antisocial behaviour in hard to reach areas. the disrupt antisocial behaviour in hard to reach areas.— hard to reach areas. the new bikes are _ hard to reach areas. the new bikes are capable _ hard to reach areas. the new bikes are capable of - hard to reach areas. the new bikes are capable of going i bikes are capable of going off—road in urban environments, footpaths, — off—road in urban environments, footpaths, baths and rural areas _ footpaths, baths and rural areas such as farm tracks. ruret— areas such as farm tracks. rural crime is big business. £4 million of stolen equipment has been seized in the last 18 months but it is in urban areas that this tactic could prove most useful. the bikes have already been deployed in reading. drug dealers and illegal vehicles been driven off—road. illegal vehicles been driven off-roent— you're live with bbc news. let's carry on with the top business news. to the environment now, because world leaders at the cop28 climate summit in dubai have this week pledged for the first time to address the role of food and agriculture in climate change. food production is responsible for around a third of the world's greenhouse gas emissions. so researchers are looking at how artificial intelligence can make farming more sustainable. josh thorpe has been investigating. 0nafarm on a farm in kent in southern england, an army of robots are picking the last of the season's strawberries, making sure only the right first and best shape berries get plucked. 0nce picked, the fruit is packaged and sent to supermarkets across the country. supermarkets across the country-— supermarkets across the count . .,. , country. the robot has two arms and each arm — country. the robot has two arms and each arm has _ country. the robot has two arms and each arm has two _ country. the robot has two arms and each arm has two cameras | and each arm has two cameras that see in colour. those cameras find ripe berries and they allow the robot marriage expressly to pick those berries. when we pick each berry, we transfer into this inspection system which allows us to check quality and therefore place it into a panic, or if it is defective in some way, too discarded. the fruit picking — some way, too discarded. the fruit picking industry in the uk currently relies heavily on migrant workers, are becoming harder and harder to recruit we can reduce food waste by eliminating recruitment risk and also help to mitigate the environmental foot print of large numbers of migrant seasonal agricultural workers travelling increasingly long distances to our farms. these robot fruit pickers help farmers like this one in southern england reduce wastage and cut emissions that arise from food production, and these robots are getting more and more sophisticated. they are all work able to detectjust the right level of ripeness in the right level of ripeness in the fruit and any small defects, and this isjust the fruit and any small defects, and this is just one example of how artificial intelligence is helping farming and agriculture become more efficient and more sustainable. 0ver efficient and more sustainable. over in california's central valley, a favourable climate helps grow plenty of tomatoes, but in recent years, unpredictable weather patterns such as heatwaves and wildfires, have both massive challenges. to help address this the largest tomato processor in the world the morning star company has been trialling new crop monitoring technology divided by the us —based technology divided by the u.s.—based firm analytics. the platform uses satellite imagery and artificial intelligence to help solve problems like wastage and over irrigation. we -rovide wastage and over irrigation. - provide everything from vegetation and to weather patterns, weather parameters that tells you, all right, this is where you have the problem, this is what the problem is all about... what you need to do about... what you need to do about it in order to either savour the crop or in case your yield down the line. the challenge _ yield down the line. the challenge that - yield down the line. the challenge that remained with use of artificial intelligence and agriculture is one of scaling up. data is still relatively scarce and robots are costly to produce. but with the growing need to reduce the environmental foot rental farming, ai innovation rapidly gathering pace and it is surely just a matter of time un