hello, i'm ros atkins, this is outside source. seconds out round two on brexit. round two of the talks in brussels. the uk is outlining four key areas including citizens rights — not for the first time, the eu is asking for one thing. clarity. we need to examine and compare our respective positions in order to make good progress. there are reports that the uae was behind a hack on qatari state media that precipitated the current crisis in the gulf. this is the uae's response. completely untrue and through our washington embassy we refuted them. this is a crisis. every day there is a new allegation. russia is demanding that two of its diplomatic compounds in the us are handed back. we will talk about that. and if you want to get in touch on any of the stories we're covering —

#bbcos is where to go round two of the brexit talks. the chief negotiators were both there. michel barnierfor the eu and david davis for the uk. at the end of the first day of talks, they gave a press c0 nfe re nce . first day of talks, they gave a press conference. let's begin with the eu's side. we need to examine and compare our respective positions in order to make good progress. as you know, our negotiating groups will work on citizens‘ rights and the financial settlement and other separation issues. our coordinators will engage in apolitical dialogue

on ireland. and they will work on enforcement of the article 50 agreement. next, david davis. we are i'iow agreement. next, david davis. we are now getting into the substance of the matter. as you have heard, there are four categories. the issue of citizens' rights, finance, separation issues and of course separately, northern ireland. it is incredibly important that we make good progress. we will identify the differences so that we can deal with them and identify similarities so that we can reinforce those. now we have to get down to work and make this a successful negotiation. you may have seen this picture being shared a lot. michel barnier and collea g u es shared a lot. michel barnier and colleagues on the left and david davis and colleagues on the right. people pointing out that the eu team have more papers. pro brexit people

say that it was a photo opportunity and he didn‘t need to bring in papers, typical eu for overcompensating. let‘s bring ourselves up—to—date. here is anna fleming in brussels. —— alan fleming. the first day of negotiations has wrapped up. david davis left the city quite early this morning, leaving most of the work to his office shelves. they have been rattling over the three priority areas set by the eu. they are citizens‘ rights, the rights of nationals living in britain and british people living elsewhere in the eu. and the financial settlement, how do you calculate how much money the uk owes eu as a result of financial commitments made when it was a member. and the big issue of the northern irish border which will become an external

frontier of the eu. that will run throughout the talks as a big issue. no white smoke from the officials taking part today. and next update will be on thursday when david davis will be on thursday when david davis will be on thursday when david davis will be back here to have a wrapping up will be back here to have a wrapping up lunch with michel barnier and his eu counterparts. then we expect a press c0 nfe re nce eu counterparts. then we expect a press conference and the whole thing will happen again in august, september and again in october. it is only then that the eu will assess whether sufficient progress has been made in those priorities use for the advice to go to the other leaders that it advice to go to the other leaders thatitis advice to go to the other leaders that it is time to start the other negotiations about the future trade relationship between the uk and the eu. we started in brussels, next to washington and moscow. an interesting story concerning two russian diplomatic compounds. the russians don‘t have access to them

at the moment but they would like that to change. one of them is in maryland. a 45 acre retreat on the state‘s eastern shore. and the other one a new york mansion on the —— in new york. these places are for the use of russian diplomats but the americans claimed they were being used as buying outposts and they seized them. we have heard from sergei lavrov the russian foreign minister and his position is clear. translation: it is daylight robbery. they are acting like bandits, taking property which belongs to us according to bilateral ratified government. in order to get it back, they are absorbed into the principal, what is

mine is mine, what i have, we will share. —— what you have, we will share. moscow has been dropping not so su btle moscow has been dropping not so subtle hints that it may be about to expel lots of american diplomats and close down a couple of american diplomatic compounds in moscow. why? because last year, resident obama did something similar, he ordered diplomats out of the country and close compounds, his reaction to russian cyber attacks aimed to on influencing the outcome of the election in america. russia cried foul and accused america of violating international law but at the time of the kremlin did not retaliate. resident peter knew that president obama would be on the way out and a new man would be there. donald trump. so we decided not to

act immediately, to give donald trump the opportunity to resolve this. if you cannot do this, we have to do something. nothing personal, just business. this is not about mr trump. this about tradition —— this is about traditions. what is frustrating the russians is that after six months in the white house, president trump, who has a going to transform relations, has not returned the compounds. but president trump faces a dilemma with alleged links between russia and his team, which only the compounds would cause problems. but russia will retaliate and this could end his hopes of a better relationship with russia. barbara plett usher is with us. to

what degree is this down to donald trump? he could reverse the decision. at this point, congress is looking at legislation which would require a review if he wanted to return any sections. legally and technically he could do it. politically it is difficult because the environment here is toxic when it comes to russia and gets more toxic all the time. there is the ongoing investigation into the allegations that russia meddled in the election and possible collusion with the donald trump campaign. that will start up again with the allegation that donald trumpjunior had joined up to talk about hillary clinton. it is the gift that keeps on giving and makes it harderfor the administration to make any concessions to the russians. even

the meeting that he had with putin which was presented as pleasant, he tried to act as if he had been hard on mr putin when he came back. are you surprised that the russians are pushing this arda? these compounds are very nice for relaxation, but they are not that big a deal in the scheme of things given what russia and america normally concern themselves with. they have made pretty clear for a long time that this is at the top of the agenda when it comes to bilateral relations. they did hold off to see if mrtrump relations. they did hold off to see if mr trump would reverse them that they have made the calculation that he isn‘t able to all that he at least need a bit of pressure to force the situation. they are talking it up at the moment. last week, when the state department spokeswoman was asked about this, she said they had heard threats from russian officials before, and they

would not respond. publicly, they are taking it in their stride but this is something that the russians wa nt to this is something that the russians want to depress now. whether that means is, what that means for any limited or pragmatic operation they might be able to eke out with the trump administration as opposed to the larger policy apparatus in washington, remains to be seen. what is interesting about this is that this informs us about how the trump— russia story is starting to affect all elements of how russia operates —— administration operates. all elements of how russia operates -- administration operates. yes, you have had congresspeople in the last months say that they are not happy with the way policy is going, that they don‘t trust the trump administration to take steps that need to be taken. that has to do with russia but in some cases other topics. you see congress pushing back. especially with this legislation to pass more sanctions

on russia and do have that clause that allows them to review any steps by the white house to roll back any sanctions. the white house is pushing against that strongly saying it will harm its ability to find areas of cooperation with russia. barbara, thank you. we will be talking aboutjerry brown ina we will be talking aboutjerry brown in a little while. he is california‘s governor, who is leading a big push to extend a tax plan in california which means that companies who pollute more pay more and we will explain how that fits into the paris climate change agreement. schools in england are to get an extra £i.3 schools in england are to get an extra £1.3 billion a year but the money will have to come from savings elsewhere in the education budget. labour has criticised the proposals but the education secretary says she

is making efficiencies within her department to allow more money to reach the front line. what i am doing is make my department make some efficiencies so that we can get that money to the front line. the alternative is higher taxes or more debt. ifigured i should be asking my civil servants to make my budget work harder and we think we can do that and put that money into the front line. schools have already lost {2.8 billion and this money is only coming on stream next year and schools facing the pinch already. i welcome it, but it needs more investment. this is an outside source, and

hourly story is that second round of talks on brexit have started. some of the main stories from bbc world service. bbc vietnamese is reporting that at least one person has died in a tropical storm fitow the centre of the unarmed. the woman‘s room collapsed. a culd rose the unarmed. the woman‘s room collapsed. a culdrose —— a cargo ship collapsed and there is also flooding in hanoi. a former state governor of india —— in india is excited to become the next head of state. and the most unlikely story of the day, china‘s social media sensors are blocking references to win a deeply because the cartoon character has been compared to president g.

the uae has been accused of being behind a key incident that helped sparklers hold rift between casar and its neighbours. let‘s go back to me, these inflammatory posts which supposedly appeared on the qatar website. they claimed at the time that they were one not true, that this was a hack. but saudi arabia and bahrain and the uaa and egypt all blocked qatari media. then they all blocked qatari media. then they all cut all links with qatar over its alleged support for terrorism and relations with iran. today, you get this article in the washington post. it contains the accusation

that us intelligence officials have evidence that this was a hack and that the uae was behind it. the foreign minister gave lucy hawking isa foreign minister gave lucy hawking is a quite different story earlier. com pletely is a quite different story earlier. completely untrue. and posting comments... completely untrue. i think if you look at the comments, they are very consistent with what they are very consistent with what they have been doing. i am talking about the hack, completely untrue. they also said that on the 23rd of may, senior members of your government discussed the plan and implementation. the whole story is com pletely implementation. the whole story is completely untrue. we turned to bbc arabic for help. the uae ambassador in washington denying the involvement of his government. the statements for foreign affairs in the uae also

denying involvement. we need to know that this was the trigger for the crisis. but we go beyond going back to the trigger and finding out if the uae hacks casar‘s news agency or not. uae is asking for international monetary fund of qatari media. it may not be in the interest of the gulf monitor key to change qatar, is ask for changes in the foreign policy which is funding extremists in the region. that is not going to happen. it is really difficult to predict. in 2014, casarwent happen. it is really difficult to predict. in 2014, casar went to saudi arabia and there was an agreement that qatar would stop funding certain political factions. now saudi arabia, and bahrain are saying that qatar did not abide by

the agreement. now qatar has a foreign policy and to change the policy would be extremely big hit for them. it is difficult for them to say that they will not be backing certain political factions in to say that they will not be backing certain politicalfactions in the region. on the other hand, the saudi and emirates blockaded on qatar is really harming the interests of the state. can i ask you one question about the alleged hack. when those state m e nts about the alleged hack. when those statements came out, did bbc arabic and other regional media thing, this isa and other regional media thing, this is a strange? will did it feel within the realms of the possible? for bbc arabic, it seems really strange. i have lived in qatarfor 15 years, i have friends who work for the state media. i asked them an iphone on the morning of the 23rd of may when sky news arabia and another

channel funded by the united arab emirates government and another one funded by the saudi arabia government had this sudden breaking news and sudden coverage for the statements. when i asked my qatari friends who are working, they said they had been hacked and they said that from the first moment of the crisis. but the saudi and emirates channels did not even carry the denial of the qatari government. and then the crisis began to roll up onto the stage. if you speak arabic, there is coverage of that story cbbc arabic .com. let‘s go to the korean police —— peninsula. rain talks are proposed in between north and south korea. the proposed talks could begin as early as this friday, a move seen as

a mean end all acts of hostility along the military demarcation line. the timing is significant, two weeks after yong yang tested what experts believe was its first intercontinental ballistic missile which could reach the united states. it also comesjust which could reach the united states. it also comes just two months into a new presidency. president mona has said that he would try to reopen talks with the north as part of a new dialogue which is different from the past ten years. he keeps the pressure up with sanctions and also tries to re—engage. what can we expect from the talks? we will see confidence building measures being discussed, in particular, the possible seizing of those propaganda broadcasts which get lead through loudspeakers across the border. but there is the possibility that the capital of been north may also call

foran capital of been north may also call for an end to drills between us and south korean military. there is also a humanitarian aspect. seoul is looking to reopen the possibility of reuniting people from the south and the north who have been separated for many decades in many cases. that could be a bone of contention for the northern capital. it is still angry with soul because of its failure to send back home a number of key defectors. we will be following that very closely. china‘s economy is huge, and it is performing above expectations. it has grown by 7% in the last three months. there is concern over its level of debt. it is 2.5 times the entire economy‘s yield over one year, too large for the comfort of some. analysts have been talking about it

for years. particularly this year and even chinese state media organisations are now talking about debt getting out of control. the government has been borrowing money off its own people and pouring it into infrastructure projects. the return on that money is getting less and the burden of debt is weighing more heavily. the authorities know they have to do something about it but they need the political backing of the party and a strong economy in order to be able to do that. next, procter & gamble, a us firm worth two —— 20 $3 billion. consumer goods, that most of us use. there is a group of activists investors who despite its huge size, won some fundamental changes to the company. michelle, what would they do if they we re michelle, what would they do if they were in charge?

they say that they can bring about change at a much faster rate. this company‘s change at a much faster rate. this com pa ny‘s culture change at a much faster rate. this company‘s culture is at times resista nt to company‘s culture is at times resistant to doing things differently. this is why this activist investor, a billionaire known as nelson pelz is trying to force the board of procter & gamble to reva m p force the board of procter & gamble to revamp its business and he is pushing to try and get elected to the board of directors. whether or not this will succeed we will have to see, but the company has been struggling to increase sales. to give you context as to why this is coming about now. keep us posted. anotherfarm i want to talk about, netflix. how is that doing? this is the entertainment company reported earnings in the last few minutes. their reaction to the share price is swift, it is up about 9% in the last few minutes.

the company is exploding in terms of the number of users, subscribers of the number of users, subscribers of the streaming service. that added 5.2 million. to give you some idea, wall street was inspecting that figure to be 3 million in a week period of the year. the channel is known for content like house of cards, orange is the new black. what will surprise people is that international viewers now account for more than half of netflix‘s membership. clearly, investors liking what they are hearing. thanks, michelle talk to you during the week. the new series of game of thrones started in the us. the new york times has estimated that this show generates billions of dollars annually and is costumes and props get attention. the success of the show is knocking on to companies

that produce the props in india. over six seasons, tv fantasy game of thrones has captured the imagination of millions. but far from the seven kingdoms, the costumes, grand sets and armoury that feature in the throat —— show are serious business for companies in india. and it is not just for companies in india. and it is notjust game of thrones. this company supplies props to many hollywood productions, from the avengers and gladiator, to the star wa rs avengers and gladiator, to the star wars franchise. it's only the indian subcontinent which has the art of hand embroidery. they can‘t get it in the west. whether we do embroidery or anything, it is very handmade, very period looking. this

is the largest factory of its kind located in the foothills of the himalayas. this company makes every type of sword from heavy steel to light titanium. it supplies the armies around the world but its salts are not sold commercially in india. domestic business is only 10%. sometimes it can stretch into 30%. but it is mostly seasonal. this army business is not seasonal. these are the details that make the story come alive on the big screen. and it means more business on the work floor here. ibe i be back in a couple of minutes. —— i will be back.

i wanted to update you on a number of stories that might couple —— my collea g u es of stories that might couple —— my colleagues have been covering. the first is whatever happened to the big storm across south—eastern asia? it dropped in lots of rain very quickly across a number of areas, including vietnam, laos and nenagh. while it was close to hanoi, those exceptional rainfall totals led to extensive flooding across the heart of the vietnamese capital. i don‘t agree are done with this system yet. it is towards myanmar and it has enough about it to be moving towards the north—west and it may bring all this associated moisture into a region that is already very much dominated by the monsoon. the more

westerly armour comes across the arabian sea, dropping its rainfall in the western states of india and up in the western states of india and up towards pakistan. but out towards the east will already have a low pressure in the bay of bengal packing up the monsoon and into that environment, we are bringing the prospect of the remnants of the tropical storm fitow you will notice ——. you will notice a deficit in north—west in —— but there have been lives lost in north—west —— in very spaces. extra seasonal rainfall across the philippines. the onshore wind bringing in a lot of moisture into the southern provinces of china including hong kong. a weatherfront is further north and it may pepper rainfall along the length of that into the north of korea and also in north—eastern china. there is a more

mobile active weather front on tuesday going through the heart of canada and it reaches some really hot weather across the northern plains of the usa so there will be a lot of file and thunderstorm activity there. we have that wildfire situation in british columbia and also into california. that same commendation of lead for some and some songs for others is across europe at the moment. a lot of storms towards the south—east, across the bosphorus bridge and black sea. and heat 20 across the southern states of europe, with wildfires in italy and the creation coast. we were carrying on with that commendation but to see who gets what, back in a few minutes. thank you forjoining me. our lead story is the second round of brexit talks have begun. the uk has been

outlining for key areas, including citizen‘s rights. the eu is asking for more information. we need to examine and compare our respective positions in order to make good progress. following the immigration crackdown in america, we have a special report on the families with no criminal record who are being split up in the process. california‘s governor is fighting to retain a tax that punishes heavy polluters. it is part of efforts to meet the terms of the paris climate deal, even though president trump is ticking the us out