this is business briefing. i'm sally bundock. china warns us that sanctions will void trade talks; while members of the g7 say a trade war with the us could be just days away. is president trump about to have a change of heart? and australia's commonwealth bank has agreed to pay $530 million for settling claims that it breached laws against money laundering and terrorism financing. and on the markets: china has warned the united states that any agreements reached on trade and business between the two countries will be void if washington implements new tariffs. talks between china's vice premier, liu he, and us commerce secretary wilbur ross ended in

beijing on sunday — without any new agreements. last week the trump administration said it will go ahead with plans to impose 25% tariffs on $50 billion worth of goods from china. this was after china had previously promised to import more from america to reduce the $375 billion trade surplus in goods it has with the united states. meanwhile, this weekend, finance ministers from the g7 nations expressed their anger with the united states over steel and aluminium import tariffs introduced last week. france's bruno le maire warned that a trade war could begin in "a few days".

president trump took to twitter on saturday and said the us had been "ripped off by other countries for years on trade". he argues steel tariffs will protect us steelmakers, an industry vital to national security. but canada's prime minister, justin trudeau, told nbc‘s meet the press that this justification was insulting: the idea that the canadian steel thatis the idea that the canadian steel that is in military in the united states, the idea that that is now a threat, the idea that we are a national security threat to the united states is insulting and unacceptable. with me is dr sam fowles, fellow at the foreign policy centre. there is so much going on. just

intruder has the north american free trade agreement on his mind that this discussion between the us and china on sunday in the point of wilbur ross doesn't seem to bear much fruit either. that was entirely predictable. for china to make those concessions, the chinese economy would have to go back to the mid-2000 mid—2000 is an china is not about to let that interfere with strategic initiatives like the made in china programme. and i think when it's all very well to say, we are going to buy a big shopping list from you but as soon as you try to put actual names on that lists, which add up to the sort of figure that the us wa nts, the sort of figure that the us wants, that is when you start to run into problems and that is what we have seen with the ross talks. how far will we go with this talk of a trade were —— trade war. we heard bruno le maire from france. there is a lot of concern from the likes of

christine lagarde and others saying they are extremely concerned about how the discussions are going. at the same time, we have this extremely important meeting between the north korean leader and president trump and that is playing a part in this. china is so critical in that. when you look at the actual numbers that are being threatened from the eu particularly and the us, it isa from the eu particularly and the us, it is a small percentage of either economy but what is really concerning and what will be concerning and what will be concerning international leaders like christine lagarde is the trump administration's departure from the rule of law norms that held the wto together, using this national security justification which together, using this national securityjustification which is com pletely securityjustification which is completely spurious and is agreed to be generally. it is difficult for the eu to hit back through the wto because the trump administration is also blocking the appointment of

judges to the appeals panel. what we are seeing is the trump administration moving global discussion is not just administration moving global discussion is notjust on trade but on many things away from this sort of systems of rules that has governed us from long—time and more into a wild west approach. it's hard to predict what will happen next and how far they will take this. you have wilbur ross taking one line. some argue that actually using the national security label is not that spurious when you look at some specific deals where the issue of national security could be a real issue when it comes to technology coming from china into the united states and the concern over how that is used. the national security justification isn't primarily being used about china, it's in relation to the eu and canada and the reason it is so spurious is that it is the

five eyes organisation in the trump administration is sharing top—secret intelligence with these nations and is saying, if we import some steel, it will damage our national security. it doesn't make sense. thank you for sharing your views of others. markets seem to be fairly calm about this situation but as you know only too well, that could change at any time and we will keep you across all the latest information. the commonwealth bank of australia —— australia has said it would pay —— commonwealth bank of of australia has said it would pay $529.5m and admit liability to settle claims by australia's financial crime agency that it broke anti—money laundering and counter terrorism laws. let's go to our asia business hub where rico hizon

is following the story. tell us more about this. this is a big slap on the wrist in a fairly hefty fine. the bank will be more than half $i hefty fine. the bank will be more than half $1 billion poorer and its profits will surely shrink once this fine is paid. it is almost double the amount of the commonwealth bank had set aside to finalise this issue and the scandal relates to 53,000 suspect transactions which the bank did not report to authorities. last year, australia's financial regulation agency accused them of systemic law breaches and at the court imposes the fine, it will be the largest civil penalty in history. the bank blamed many on a computer error and it triggered a major sell down and a board shakeup. australia's banking and financial services sector has been rocked by a series of scandals over the last decade. in december, malcolm turnbull established a royal commission enquiry to investigate

the scale of this wrongdoing and about allegations to hit commonwealth bank, the enquiry heard the lender had collected fees from customers each new had died. complications in the ongoing investigation and a major fine for commonwealth bank of australia. thank you for the update. now let's brief you some other business stories. accorhotels has issued interest in buying part of air france klm. the french government is reportedly considering a sale of all or parts of its 14.3% stake in the national carrier. air france klm has been struggling to stay profitable in the face of long—running labour strikes and rising competition. to t to he international air transport —— the international air transport

association plans to revise down its profit forecasts this year because of rising oil, infrastructure and labour costs. but those aren't the only issues facing the airline industry. the bbc‘s aaron heslehurst is attending iata's three—day annual conference in australia. g'day from my hometown. i am here to analyse an industry which 4 billion of us use last year, and it is going up. i am here to take a look at the global airline business. why sydney? it is this year's host city of the iata general meeting, the only time of the year that you get 480 airline bosses under one roof. will airlines go electric? and what will we, the passenger, have to pay for? and here is a problem. where are the women? why are they so very few female ceos in the industry? the man responsible for all of that, the big loss of iata,

isjust over here. a former french businessmen and the former ceo and chairman of air france klm. alexandre, good to see you. four quick questions. long haul flights seem to be on the rise. has demonstrated its ability to transfer passengers on long haul distances successfully, so people pay less to travel more and travel longer. it is a new trend in the industry and it will continue. everything is going electric nowadays. electric planes. are we going to see them? i think it is too early. the electric technologies

for aeroplanes have been very carefully studied by our manufacturers, but it is a long—term solution. and airlines are always trying to make a profit, of course, which means passengers are paying more and more for things. what is next? you are travelling for a much lower price than you are travelling ten years ago, so we have made an enormous effort to reduce our fares so you can travel everywhere for cheaper prices. and let's talk about one problem facing your industry and many industries. where are the women? why does the airline industry have so few female ceos? i think it is a problem, and we are working hard to improve that. even inside iata, in which we have no women up until now, which was a disaster, we will have more women. you will see that in the coming days. 0k, alexandre, good luck for the next couple of days. stay with me for the next few days. i will be talking to the big airline bosses to find out what they think will be the big

changes at 35,000 feet. i will see you soon. that's it for business briefing this hour. more than 5.5 million people in the uk are members of a trade union. but that number has been falling steadily since its peak at the end of the 1970s. so now it's launched a campaign to attract younger members, currently at its lowest level since 2001. joe lynam reports. many of britain's cafes, bars and restau ra nts many of britain's cafes, bars and restaurants tend to employ young people under the age of 30 without trade union representation and the tuc is worried young people are working in increasingly precarious jobs with 0—hours contracts and no jobs with 0—hours contracts and no job security. the problem is many of their employers especially in the private sector make it hard for us to organise them so if you think

about where young people are working, in hospitality or retail or the care industry, often on temporary or 0—hours contracts, often in franchise organisations that are hard to organise, the model that are hard to organise, the model that we have isn't working for them so we've got to fix it. tuc has launched a work smart programme to encourage young people to organise their work better in the digital age, part of the tuc‘s 150th anniversary. when the congress was first established in 1868, there we re first established in 1868, there were 118,000 trade union members. by 1979, peaked at 13 million but today, 5.5 million with the biggest drop in membership among the young. 0nly16% of under 30s in the trade union and the private sector, only 996. in

union and the private sector, only 9%. in the gap between what all the people earn compared to the under 30s is also getting wider. the tuc says the pace at which wages are growing for young people has slowed dramatically in recent years. coming up at six o'clock on breakfast — the team will have all the day's news, business and sport. and as thousands of rail customers face further changes to theirjourneys this morning, breakfast‘s tim muffett will be at london bridge station after train companies introduced emergency measures to end weeks of delays and cancellations. this is the briefing from bbc news. the latest headlines: devastation in guatemala — at least 25 are killed as a river of lava sweeps through villages. italy's interior minister says his country won't be "the refugee camp of europe" and prepares plans for large—scale repatriations. donald trump's lawyers is that the president probably has the power to pardon himself over allegations of collusion with russia but he will not. now it is time to look at the stories that are making the headlines in media

across the world. we begin with the telegraph which carries a warning from china to the us that any recent trade agreements made will be withdrawn if president donald trump moves ahead with his threat to level tariff hikes against chinese goods. the japan times also focuses on trade and how six of the other g7 member countries have issued a statement to the us conveying their "unanimous concern and disappointment" over the recent steel tariffs. the times leads with reports israel is pressuring europe to tear up the nuclear deal with iran after sharing secret files showing tehran's determination to build a bomb.