people in spain protest against one of the country's most important sources of income. and how extreme weather conditions are pushing up the price of insurance. welcome to business today. i'm sally bundock. let's get started. we start in china where consumer price inflation slowed injune, while producer price deflation persisted as beijing's support measures set a bumpy economic recovery in motion for the world's second—largest economy. if we look at the numbers... consumer prices rose by 0.2% injune from a year earlier. that's slightly up on the 0.3% rise in may and a much smaller rise than economists had expected. on a monthly basis, prices actually fell. at the end of last year,

china plunged into deflation for four months with the sharpest contraction in consumer prices in m years injanuary. meanwhile, falling producer prices continue to be a problem. in june, they fell 0.8% in line with forecasts, but easing from the previous month's1.4% drop. an ongoing crisis in the real estate sector, which has long accounted for a quarter of the country's gdp, has dragged down growth. for more on this, i'm joined by kelvin wong, senior market analyst, oanda. good to see you. what do these numbers tell you about the state of the chinese economy? if you look at the trend, it seems to us that it has started to improve significantly since

the start of this year, and if it continues with this movement, it will actually filter down to a positive feedback to the consumer inflationary trend. nevertheless, in order for the much more sustainable recovery, we also need to see movement in business and consumer sentiment as well, which is not showing up as well, which is not showing up at this end of time. the enticing services, that was released much earlier last week. is released much earlier last week. , ., ., released much earlier last week. , . ., , . week. is china in a difficult osition week. is china in a difficult position when _ week. is china in a difficult position when it _ week. is china in a difficult position when it comes - position when it comes to day inflation? will that be a real problem going forward? yes, recisel problem going forward? yes, precisely -- _ problem going forward? yes, precisely -- deflation. - problem going forward? yes, precisely -- deflation. the i problem going forward? yes, | precisely -- deflation. the top precisely —— deflation. the top policymakers, the property bubble burst injapan 30 years ago when the economy started to

slip. monetary policy doesn't seem to be working at that point in time. there was much concern about shifting away from the infrastructure and that kind of growth that china has enjoyed the last ten, 15 years. a shift away from that to much more higher sustainable quality. i believe right now they are hoping external factors will work in their favour, especially on the federal reserve monetary policy direction, very likely the next step is to ignite the start of an interest rate cut cycle rather than a hike cycle. quickly, we are almost out of time. the chinese government, all the leaders are gathered

very soon for their annual look at things. what could be announced about this? i think we do not _ announced about this? i think we do not depend _ announced about this? i think we do not depend much - announced about this? i think| we do not depend much higher hopes on the system. more primary focus on the long—term policy trajectory, drive the long—term growth —— growth on the chinese innovation, the focus on industrialisation. thank you for your time. good to get your analysis on this. now, let's focus on the grilling in congress that had market watchers worldwide on alert. the chair of the us central bank, jerome powell, appeared on capitol hill on tuesday for his twice—yearly report to congress. 0ur north america business correspondent erin delmore was also watching for any clues on where interest rates are headed next. for months, jerome powell has

said he and other top committee members are waiting for more evidence that inflation is headed to the target before cutting interest rates. to be sure that line made its way into the testimony again today but there were also closed that times are changing. he said the us economy is no longer overheated and acknowledged that one red—hot labour market is falling. —— is cooling. just the kinds of things that would pave the way for future rate cuts. it does not seem likely that the next policy move will be a rate increase. we do not take things like that off the table but that is not the likely direction. as we make more progress on inflation and as the labour market remains strong, we would begin to loosen policy. around six cuts were expected over the course of this year back injanuary, traders' expectations are down to one or two before the year is out.

if we loosen policy too late or too little, we could hurt economic activity. we could undermine the progress on inflation. so we are balancing those two risks and that is the essence of what we are thinking about these days. chair powell knows this is not a usual year. some senators took the opportunity to do some political grandstanding. casting the tariffs as inflationary. also focus on the housing market, including high prices, closely aligned and low inventory and on the rule that would acquire banks to keep more cash on hand. the fed has two opportunities to enact cuts before the presidential election at meetings injuly and september. powell has one more opportunities on wednesday before the house financial services committee. live now to tom stevenson, investment director, fidelity. good morning to you. what do

you reckon following that grilling about right the us? —— rates. grilling about right the us? -- rates. ., ., grilling about right the us? -- rates. . ., ., . , rates. chairman powell chooses his words very _ rates. chairman powell chooses his words very carefully - rates. chairman powell chooses his words very carefully as - rates. chairman powell chooses his words very carefully as you | his words very carefully as you can imagine, but he is definitely pushing us towards expecting a rate cut, probably not in july. expecting a rate cut, probably not injuly. i think the rate cut will come in september. but he said very clearly that inflation is not the only problem, and the fed has to not only keep control of inflation, but also to support growth in the economy. last week we had some labour market figures which showed unemployment was up which showed unemployment was up 4.1%, which was the highest level since november 2021 for the wage growth is slower than it has been for quite some time. i think that we are edging towards a slowdown in the economy and the federal reserve is very conscious of that. i think the next stage in the monetary cycle will be a cut in interest rates. but the monetary cycle will be a cut in interest rates.- cut in interest rates. but as ever, cut in interest rates. but as ever. what _ cut in interest rates. but as ever, what is _ cut in interest rates. but as ever, what is happening - cut in interest rates. but as ever, what is happening on| cut in interest rates. but as - ever, what is happening on main street is not reflected on wall

street. it is a bull run right now. the snp 500 closing at a high again for the fifth session in a row, the nasdaq the highest for the session in a row. focus through what is driving that. —— took us through. pa, driving that. -- took us through-— driving that. -- took us through. driving that. -- took us throu~h. �* ., ., , ., through. a narrow focus on the small grow) — through. a narrow focus on the small groua of— through. a narrow focus on the small group of big _ through. a narrow focus on the small group of big technology i small group of big technology companies because, yes, we have had five consecutive new records for the snp 500, but that index is completely dominated by those tech stocks. if you look more broadly at the equal —weighted index, which as its name suggests, gives equal prominence to all 500 companies in the index, notjust those tech stocks, the market is actually going sideways. 0ver actually going sideways. over the last three months the snp 500 is up 7% but that equal —weighted index is actually down 3%, so the broader stock market is actually starting to price in that slowdown, which i have just described. it is

interesting, _ have just described. it is interesting, really - interesting, really interesting. thank you. good to get your take on what is happening stateside. let's get some of the day's other news now. consumer electronics giant dyson will be making cuts to its uk workforce. approximately one—third or 1,000 employees will be laid off across all departments. more than half of dyson's sales come from asia, and in 2019, the company's head office was moved to singapore. the news of these lay—offs have prompted greater uncertainty about its operations in the uk. the european space agency has successfully launched a new generation rocket, ending a year—long hiatus without a viable vehicle. the ariane 6 was a $4.6 billion combined effort overseen by the esa and built by an airbus—safran joint venture. its debut shows that europe is now back in the space race, a market dominated by elon musk�*s spacex. the head of thames water has defended his decision to take a bonus, saying the struggling utility

"needs to attract the best talent" to ensure its survival. chris weston, who joined as chief executive injanuary, took a £195,000 bonus for the three months to the end of march, taking his total pay to £157,000 for a period when britain's largest water utility has been battling to avoid nationalisation. now, let's talk about extreme weather — something we report on here a lot at bbc news and many of you are all too familiar with its effects. wildfires, storms, hurricanes and flooding have pushed up costs for the insurance and reinsurance industry. in the uk, weather damage insurance claims were the worst on record last year according to the association of british insurers. this massive rise was largely fuelled by the succession of storms that struck last autumn. injune this year, swiss re, one of the world's biggest

reinsurers — said the industry significantly underestimated the fallout from recent natural disasters across europe and warned that some areas have become "uninsurable". to talk us through the challenges, i'm joined by matthias truestedt, head of global property and casualty, allianz group. it is huge in this industry. i was just looking at headlines about texas. millions of homes and businesses without power right now because of hurricane beryl, who has ripped through the caribbean and now through texas. the hurricane season is starting a lot earlier than usual. this is another example, isn't it? it usual. this is another example, isn't it? , usual. this is another example, isn'tit? , ., isn't it? it is. good morning sto isn't it? it is. good morning step we _ isn't it? it is. good morning step we can _ isn't it? it is. good morning stop we can see _ isn't it? it is. good morning stop we can see a _ isn't it? it is. good morning stop we can see a world - isn't it? it is. good morning| stop we can see a world wild isn't it? it is. good morning - stop we can see a world wild -- stop we can see a world wild —— worldwide scale, extreme weather on different continents. we have really extreme heat, and as the

numbers you quoted will show us, the amount has risen a lodge. that is notjust due to extreme weather, it is a lot of socio—economic factors in inflation higher, aggregation of property in hazardous areas and just also a growing economy as well. it is very important to separate the effects in order to fully understand what is happening and what might be happening. in is happening and what might be ha eninu. is happening and what might be haueninu. , ., ., happening. in the short are we assuming _ happening. in the short are we assuming this _ happening. in the short are we assuming this will— happening. in the short are we assuming this will only - happening. in the short are we assuming this will only get - assuming this will only get worse? we hope it get better as governments, organisations and individuals respond to the climate crisis, but in the short—term, in the years ahead, things will improve significantly. how are you preparing for that? it significantly. how are you preparing for that?- significantly. how are you preparing for that? it is very important — preparing for that? it is very important to _ preparing for that? it is very important to take _ preparing for that? it is very important to take a - preparing for that? it is very important to take a couple l preparing for that? it is very | important to take a couple of measures. the insurance industry can and will play a role in that because we think we have a lot of expertise in terms of estimating and

assessing how and where it is going to strike most likely. at the same time, global warming is here to stay, everyone knows that, and we had to invest a lot more into protection and resilience, and all of this together with the role of the state, where there must be enough of state incentive to also invest in the protection and also make sure that we have enough resilience in nature, together we think that is the only way to cope with that in the next years.— only way to cope with that in the next years. not surprising to hear that — the next years. not surprising to hear that swiss _ the next years. not surprising to hear that swiss re - the next years. not surprising to hear that swiss re 's - to hear that swiss re �*s warnings on parts of europe are uninsurable. it has to be true of so many countries around the world, and if that is the case —— case, people have to move away, there will be parts of countries that are uninhabitable. ., ,, , ., , uninhabitable. thank you very much. i uninhabitable. thank you very much- i was — uninhabitable. thank you very much. i wasjust _ uninhabitable. thank you very much. i wasjust going - uninhabitable. thank you very much. i wasjust going to - uninhabitable. thank you very much. i wasjust going to say| much. i was just going to say the word uninhabitable. the question about that, if you

were to live in a place where you would be sure your home would be completely flooded or burnt once every ten years at least, would you really want to live there? as i said, insurance is one part, but the other parts are protection and resilience and we have to make sure we are all more aware of what is happening and what makes sense, even the insurance principle comes to its limits when you have certain events, insurance is just for uncertain events and we would have areas where it is rather certain there will be a major catastrophe, we need to also think about other solutions to that problem.— think about other solutions to i that problem._ thank that problem. thank you. thank ou ve that problem. thank you. thank you very much- _ around the world and across the uk, this is bbc news.

you are with business today with me, sally bundock. after nearly nine months of disruption and uncertainty for shipping lanes through the red sea, chinese exporters have issued an ultimatum to their clients in the west — place your orders now or don't expect your goods in time for christmas. this warning about christmas shipping delays comes as exporters, importers and manufacturers are all under pressure to keep global trade routes alive. live now to emily stausboll, senior shipping analyst for ocean shipping at xenata. good to have you on the programme. how bad is it? will the shops be empty at christmas? i the shops be empty at christmas?— the shops be empty at christmas? ~ ., . christmas? i think the fact that we are _ christmas? i think the fact that we are talking - christmas? i think the fact that we are talking about i christmas? i think the fact i that we are talking about this now suggests that we won't have major problems. i think a lot of companies are trying to act proactively. for many, they still have the disruption of the pandemic fresh in their minds, so to be able to say we know there is a lot of problems at the moment, we have increasing congestion at different ports, so if i can

move my imports forward if i have the option and space for it where i am importing it, thatis it where i am importing it, that is what they are doing to hopefully avoid the problems they experienced in 2021 and into 2022. they experienced in 2021 and into 2022— into 2022. which sectors are mostly impacted _ into 2022. which sectors are mostly impacted by - into 2022. which sectors are mostly impacted by this? i l into 2022. which sectors are l mostly impacted by this? i am assuming retail?— mostly impacted by this? i am assuming retail? yes, everybody who transport — assuming retail? yes, everybody who transport containers, - assuming retail? yes, everybody who transport containers, there l who transport containers, there will be a degree of how long can i await before this container comes in? we are talking about peak season imports being brought in and those are typically what you would see on the shelves from october and into the christmas period. i october and into the christmas eriod. ., , october and into the christmas eriod. .,, ., ., period. i was going to say, when does _ period. i was going to say, when does all _ period. i was going to say, when does all this - period. i was going to say, i when does all this christmas stuff start to arrive? i feel like the christmas experience in the shops, let's put it that way, comes earlier and earlier every year. way, comes earlier and earlier every year-— every year. yes, typically we see a pickup _ every year. yes, typically we see a pickup i _ every year. yes, typically we see a pickup i would - every year. yes, typically we see a pickup i would say i every year. yes, typically we see a pickup i would say in i see a pickup i would say in july and then into the early weeks of october is when we see the container imports rise so that they can get onto the shop

floor in time, but that has now been brought forward, record high volumes in my, and that is not because of the huge underlying demand over some for goods, it is partly to make sure you have what you need come christmas and then other factors also play into that. 0k, emily, thank you. we heard the warning and the retailers i'm sure are on it. thank you very much indeed. spain's economy has been growing faster than most of its neighbours recently. that's in great part because of the tourist industry, which contributes around 13% of gdp and is once again breaking records. but not everyone is happy about the growth of tourism in spain, which is now seeing a backlash in many parts of the country. guy hedgecoe reports from malaga. for more than half a century, a tourism model based on sun and sand has been a driving force for the spanish economy. today,

it is the main reason why the country's gdp is growing faster than almost its european neighbours. this year, nearly 100 million foreign visitors are expected. aha, 100 million foreign visitors are expected.— 100 million foreign visitors are expected. 100 million foreign visitors are exected. �* _, . are expected. a new record. we have been _ are expected. a new record. we have been responsible - are expected. a new record. we have been responsible in - are expected. a new record. we have been responsible in the i have been responsible in the last years of the most important percentage of growth of our economy. in 2023, we were responsible for 80% of the whole gdp growth of spain because other sectors were not growing. they were not at the same level of tourism. explain's relationship with tourism seems to be at a tipping point —— but spain's relationship. a backlash started as a country counts the cost of an industry which has been so lucrative. popular holiday destinations like the canary islands in the balearic

�*s have seen protests by local people. upset at the impact tourism is having on their home environment. the southern city of malaga staged a similar demonstration. much of the anger is caused by the high number of apartments used as short—term tourist accommodation. in malaga, nearly a third of all properties are in this category. in the city, it has been developed in a way that the prices are going so high, that now, people who work and live here cannot really afford an apartment. you feel like you aare in a theme park, that everything is not really for living there. this discontent has triggered discussion of possible ways of controlling arrivals or even rethinking spain's tourism model. if we want to really talk about sustainable tourism or a lower number of tourists,

we should discuss about limits to the activity and higher restrictions and more regulation of the sector, which until now, has been kind of free to act, but right now, we need to start putting some limits. malaga is one of several spanish cities which are planning on introducing restrictions on the granting of licenses for short—term accommodation. but barcelona is going even further. in 2028, it plans to revoke the licenses of all its 10,000 or so tourist apartments. but as spain's popularity as a tourist destination shows no sign of fading, many asking whether the country's success is still a good thing. guy hedgecoe, bbc news, malaga. if you are a regular view of this programme, you will know samsung workers are on strike. the action was supposed to come to an end today.

the labour union for workers at samsung electronics in south korea has announced it plans to go on strike indefinitely according to statement on its website. over 5,000 members of the national samsung electronics union had already stopped working since monday in protest for better pay and benefits. that strike was supposed to last three days. live now to mariko 0i who is following the story from our asia business hub in singapore. nice to see you. an indefinite strike dash that sounds serious. strike dash that sounds serious-— strike dash that sounds serious. , . ., serious. yes, and as the world was my biggest _ serious. yes, and as the world was my biggest maker - serious. yes, and as the world was my biggest maker of i serious. yes, and as the world was my biggest maker of of i was my biggest maker of of memory chips, smart phones and television and so on, this news has been making headlines, as you said, and they were supposed to stop today, but as you said, they have announced that they will keep going indefinitely. they are demanding better pay and conditions especially because of the company's incredible performance lately. if you rememberjust last friday the remember just last friday the company rememberjust last friday the company said they expected profits to jump by more than 4000% in the most recent quarter. it is important to

mention that wind chimes of a number of people who have been participating because some —— samsung electronic �*s has 25,000 employees and about 30,000 are unions. according to the unions, 6500 joined the strike, 5% of its total employees, oraccording strike, 5% of its total employees, or according to police, about 3000 joined on monday. if you are thinking of getting a new phone for christmas, for example, you don't need to worry about the delay or anything like that because many analysts have said that there will not be an impact on its production lines in the company has said that they would ensure no disruptions occur. the company also said it remains committed to engaging in good faith negotiations with the union. having said all that, the movie is symbolic because when the union staged a walkout last month, it was the first ever industrial action at the company since it was founded 5.5 decades ago. it is quite unusualfor 5.5 decades ago. it is quite unusual for these workers here in asia to go on right stop 0k.

thank you very much. see you soon. before we wrap up, let's show you the financial markets. we talked about the bull run on wall street that is continuing, you can see in asia that markets are fairly flat. asian markets are fairly flat. asian markets would have been impacted by the news that we lead on in this programme about chinese inflation and the concerns about deflation. as we show the closing numbers, numbers making headlines again. it is a magnificent seven stocks really pushing up the markets, apple, microsoft, alphabet, the parent of google, amazon, nvidia, meta and tesla. tesla has had quite a remarkable run. it is quite extraordinary. you are up—to—date on all the business news. let's show you what is happening online today. the expectation has weighed heavily, says gareth southgate,

who of course is preparing for their big match tonight, the semi—final in the euros 2024 against the netherlands. further down here, this article, you can hearfrom jordan pickford, the goalie who in my opinion has got one of the toughestjobs, especially if we go to penalties. that is all from me. have a lovely day. i will see you soon. hello. thanks forjoining me. well, it does feel like summer has come to an abrupt end. or perhaps it never started in the first place. and more rain clouds on the horizon for the rest of this week, but here's some good news, at least it's not going to be raining all the time. i want to show you the big picture first and where the jet stream is relative to the uk. here it is over the next few days, to the south of us. now, north of the jet stream,

we generally have cool air. south of the jet stream, we generally have warm air. notice where it is over the coming days — to the south of us. that means we get that air stream from the north and with a rippling jet stream. we also have weather patterns heading our way and, in fact, a lot of rain to come in the coming days, particularly across northern parts of the uk. in fact, the northeast of scotland in the next 24 hours, particularly soggy with this weather system here. that rain unrelenting here, particularly in the northeast highlands in grampian. to the south by the end of the night, i think, just a few scattered showers, but it is relatively humid air, so that means that the temperatures aren't dropping particularly low overnight, say, 14 degrees first thing in the morning. now, here's wednesday, low pressure to the north. so, that rain that i mentioned, in the north and the east of scotland, the met office is pointing to 20—30mm of rain quite widely. in the extreme case, it could be double, even triple that. so really, really wet

across this part of the world. to the south, scattered showers, maybe some thunderstorms. but i think come the afternoon there will be some sunshine in the south of the uk. and that, of course, is good news for wimbledon because the weather has been dreadful. however, there is a rain symbol there for wednesday. that's to indicate the showers we should have in the morning, but come the afternoon, it will be better. now, high pressure is close by. it's just in the wrong position. we're on the edge of the high, so that means that the winds are coming in from the north. so really cool air sliding across the uk with showers and again rather a lot of cloud. look at the temperatures — 14 in aberdeen. we might squeeze 22 or 23 in the southeast of the country, if there will be some prolonged sunny spells, but the outlook into the weekend really says it all. it's that mixed bag and it is on the cool side forjuly. bye— bye.

good morning, welcome to breakfast withjon kay and sarah campbell. 0ur headlines today. sir keir starmer touches down in washington tojoin the 75th nato summit, as he makes a cast iron commitment to increase defence spending.

president biden welcomed leaders with a forceful speech, declaring the military alliance "more powerful than ever". we are already, and we are willing, we are able to deter aggression and dissent every inch of nato territory across every domain. land, air, sea, cyber and space. the countdown is on to england's euros semifinal against the netherlands. it is going to be a nervous day ahead for england supporters as we head towards kick off. here in dortmund tonight. can england make it back to back european championship finals? it back to back european championshipfinals? knowing it back to back european championship finals? knowing it would be spain who await them, if they can get to send a's final. good morning. iam they can get to send a's final. good morning. i am at lord's as james anderson gets set to say farewell for the last time as he prepares to play for england one

last time.