over isa is a new government in india unveils its first budget, we look at the issues that could be addressed. hello and welcome to business today. i'm steve lai. in the us, chips stocks lost more than $500 billion in market value after a report said the us was mulling tighter curbs on exports of advanced semiconductor technology to china. shares in equipment provider asml, nvidia and and arm were all down. i'm joined now by markets analyst bob o'donnell, out of california. bob, great to speak to you again. what your reaction, voice the main thing we should understand about this potential

move? ., ., ~ , understand about this potential move? , , , ., move? look, these type of restrictions _ move? look, these type of restrictions have _ move? look, these type of restrictions have already i move? look, these type of. restrictions have already been in place, the market has already priced a lot of this in, so it's kind of surprising to see this dramatic a reaction was that it feels a little unnecessary to be quite honest with you. my guess is regardless of the outcome of the election, i know a lot of people are asking about that, i think we will see the us increase some of the restrictions. how far they take it is the big question. i think part of the reaction we saw with a snl is that almost 50% of the revenue this past quarter was in china and so obviously if their armour restrictions placed there even though it is a dutch company, there are certain us—based technologies in there and the us deploys some rules around using that technology —— asml. that could obviously impact asml. rememberthat that could obviously impact asml. remember that asml also builds the highest and euv machines that can only go into the us and are going to taiwan,

and most advanced chips for compass like nvidia that you mentioned are all still being bought, still being used, intel is buying them as well, so all of these things are going into place. the question is one of balance. how much of that will they sell versus how much business will they lose of the slightly older equipment which is what they are still allowed to sell into china? fin is what they are still allowed to sell into china? on china's art, to sell into china? on china's part. what — to sell into china? on china's part. what your _ to sell into china? on china's part, what your take - to sell into china? on china's part, what your take on - to sell into china? on china's part, what your take on howl part, what your take on how they have been reacting? as you mentioned this has been an ongoing thing, this is not a new round. it ongoing thing, this is not a new round.— new round. it really is not, and there _ new round. it really is not, and there is _ new round. it really is not, and there is a _ new round. it really is not, and there is a lot - new round. it really is not, and there is a lot of - new round. it really is not, and there is a lot of the . and there is a lot of the speculation has to do a little bit with tsmc and what trump said, but to your question on china, what they are trying to do is figure out ways to do with equally double stacking technology where they take order technology and do multiple layers to get a finer resolution. the problem with thatis resolution. the problem with that is the yields are not very good, and so that means the

cost to the manufacturers is much higher in the actual volume they can produce is much lower, and those are the concerns we are going to start to see, because when we get into numbers like seven nm, we are seeing some chinese company to that, which originally they did nothing was going to be possible, but it is because of this layering approach, and again it is very problematic to produce in big volumes.- produce in big volumes. does resent produce in big volumes. does present concerns _ produce in big volumes. does present concerns for - produce in big volumes. does present concerns for china. . present concerns for china. just quickly, you mentioned tsmc and trunk?— tsmc and trunk? look, the reality is. _ tsmc and trunk? look, the reality is. a _ tsmc and trunk? look, the reality is, a lot _ tsmc and trunk? look, the reality is, a lot of - tsmc and trunk? look, the reality is, a lot of trump i tsmc and trunk? look, the reality is, a lot of trump is | reality is, a lot of trump is in the comments were based on the fact, he does not understand the sum conducted business, because tsmc play such a big role in sending these chips to other places. —— these chips to other places. —— the semiconductor business. it does to all these businesses, us companies, and you cannot just take that all out of taiwan overnight. these things take years and years and years, so there's. .. take years and years and years, so there's... the fundamentals have not changed and defined mentals of what tsmc is giving are still strong and will

continue to be regardless of the election outcome. bab the election outcome. bob o'donnell. _ the election outcome. bob o'donnell, thank- the election outcome. bob o'donnell, thank you - the election outcome. bob o'donnell, thank you for your analysis today. leaders in china are wrapping up a major meeting which has been presided over by president xijinping. known as the third plenum, it has often been a platform for announcing major long term social and economic policies. this year's meeting comes against the backdrop of slowing growth. i spoke to arthur kroeber, a china analyst, for more. the point of this kind of meeting his long—term surgery goals rather than a short—term tactical things. the goals rather than a short-term tactical things.— tacticalthings. the problem the chinese _ tacticalthings. the problem the chinese economy - tacticalthings. the problem the chinese economy is - tactical things. the problem i the chinese economy is going through this year of the property sector, consumer confidence, this would befall any tactical bucket. what the plenum is there to address is, what is the long—term growth strategy that china wants to employ? strategy that china wants to em - lo ? , ., ., , employ? given that growth is slowin: employ? given that growth is slowing in — employ? given that growth is slowing in china _ employ? given that growth is slowing in china in _ employ? given that growth is slowing in china in nursing i employ? given that growth is l slowing in china in nursing and geopolitical concerns, isn't this a good opportunity for policymakers to try and

stimulate growth? well, i think xi and his colleagues have been pretty clear for the last couple of years about what they want to do. and essentially what they want to do is they want to reduce the flows of funding to the property sector, which has been a big source of growth for the last 20 years, and increase the funding for tech intensive manufacturing industries, and their view is, as you go through that process of reallocation, there may be some tough times. the property sector may be really bad and that may be really bad for confidence, that those tough times are the price that you need to pay for the kind of long—term growth that you want. so again, i think their eyes are focused on the longer term rather than trying to adjust the short—term problems. and what sort of reforms, then, to your mind would you like to see being announced, or to hear more about? i think there are two separate things here. one is what liberal economists such as myself both inside and outside china would like to see, and what we think is actually going to come out of

the plenum. those are two different things. most economists in my pocket would like to see some intention paid to some of the deep fiscal and financial system issues that trade incentives or local governments to overinvest in manufacturing capacity to keep money out of the hands of households and their bite stunt the consumption economy. bubble we are likely to see out of the plenum is not those kinds of reforms, but further efforts to improve their ways with which the state can move capital into the state can move capital into the tech sectors that it favours. despite economic uncertaintly in china and the us, the rest of the asia region is likely to see improved growth this year on the back of stronger domestic demand and export growth. that's according to the asian development bank. but inflation and geopolitical concerns still pose risks. albert park from the asian developing bank told me what a second trump turn could mean for the region.

obviously, he's promised to raise tariffs on china substantially, and these days, china is increasingly tied to other countries in the region through global value change, so there's much more sourcing of inputs from east asia to china and sourcing of inputs from china to other countries in southeast asia, so raising those tariffs on china could hurt other economies in the region as well. and of course, this promised across the board increase of 10% would hurt all export activity to the us. in the coming days, india's newly elected government will present its first budget. with the ruling party losing its outright majority in parliament, analysts expect the budget to focus on issues like youth unemployment and the struggling rural economy. the bbc�*s nikhil inamdar travelled to the country's most populous state — uttar pradesh — and sent this report. northern india's rural heartland... ..bypassed by the country's shiny economic boom. sushil pal�*s family has tilled

these plains in this village for generations. "it's hard toil," he says, "that hardly pays." he didn't vote for prime minister modi in the elections gone by, despite supporting him the previous two times. "the prime minister's promise to double farm incomes," he says, "has remained just that — a promise." translation: my income has gone down as prices for inputs _ and labour have gone up, but not for the produce. all the money i make goes in paying fees for my sons. one is an engineer but hasn't had a job for two years. down the road, this furniture factory has seen its exports drop 80% in the last five years. the proprietor says he'd have liked to sell locally, but continuing rural distress

means there is no demand. translation: the farm economy is down and the biggest problem | in growing local demand is high debt among farmers and also unemployment. they have no money in their pocket and no capacity to buy anything. such economic pain may have at least partially caused the electoral retreat of prime minister modi's party from this once bjp stronghold. so this really is the india that's been left behind by its galloping gdp, and the biggest challenge now for prime minister narendra modi will be to address these sharp inequities and bring prosperity to these villages. pushing manufacturing that can create localjobs and spur wider consumption will be key to bridging these gaps, say experts.

if i'm able to make 200 rupee shirts in this country and not let that import demand leak to bangladesh and vietnam, i will boost manufacturing. so manufacture things where people want, give them the jobs where they live and you will see a revolution. these people who make up india's large rural majority. a better dealfor them is critical for a country aspiring to become the next global superpower. nikhil inamdar, bbc news in muzaffarnagar, uttar pradesh. and that's it for this edition of business today. before we go, just to remind you at the top of the hour, keep it here on bbc news. we will take his life to i , wisconsin —— milwaukee, wisconsin, the republican national convention. my colleague caitriona perry is live there.

hey, i'm lola with the catch—up. tonight, the king's speech, adele's big breakfrom music and stormzy and maya jama's break—up. loads of mps went into westminster today to listen to the king's speech in the state opening of parliament. it's sort of like an induction day at school. black rod! there's no voting but loads of pomp and tradition, as mps are called to the lords to listen to the king. it's written by the government for the king to read out and tells us what they want to do over the next year or so. there's a big focus on building more houses, no more no—fault evictions for renters, better local bus services, improved mental health support, and a ban on smoking if you're born after 2009. one slight surprise is that we didn't hear anything today about votes for i6—year—olds.

some other stories. chelsea are investigating midfielder enzo fernandez after he posted a video online of an alleged racist chant. he's since apologised on social media. and stormzy and maya jama have split up. the rapper and love island presenter shared a joint statement on insta to announce their split, but said they'll remain friends. time now for 10 seconds of kindness. this pup won a gold medalfor donating blood to 160 dogs in the uk. sharwood was such a pro that he snored his way through his 40th and final session. i mean, look at him! what an adorable pup! you're all caught up now. have a great night.

hello there. welcome along to sportsday with me, paul scott, here's what's coming up: the scene is set — with just a few hours to go before the open gets under way, who can tame the course at royal troon? chelsea begin disciplinary proceedings against enzo fernandez, after he shares a video allegedly containing a "racist and discriminatory" chant. and life withoutjimmy — england prepare for the second test against the west indies without their retired all—time leading wicket taker, james anderson.