this is business briefing. i'm sally bundock. the tit—for—tat trade war between the us and china escalates. the us threatens a further 10% tariff on $200 billion worth of chinese goods. nose dive — another low—cost carrier's set to announce a spiralling loss. we take a look at the challenges facing the aviation sector. and the markets in asia are headed in one direction thanks to the latest trade threats firing between the us and china. let's bring you more on the trade story dominating. president trump has just threatened to impose an additional 10% tariff on $200 billion of chinese goods in the latest turn of events in the us—china trade dispute.

the move could be a major escalation of the row which threatens to take the us and china into a trade war. paul blake reports from new york. this announcement is the latest twist in what is becoming a tit—for—tat trade dispute between the world's two largest economies which could spiral into a trade war. last week the trump administration slapped 25% tariffs on up to $50 billion worth of chinese goods are prompting ageing to threaten retaliation. donald trump says he will impose a 10% levy on $200 billion worth of chinese goods if ageing goes through with its tariffs. in his announcement, mr trump reiterated his concern that the trade relationship between the two countries is unbalanced and said that china showed no intention of stopping the forced the american intellectual property to chinese firms. both allegations he had made

several times before. what happens next? the chinese have pledged to respond with their own measures if the trump administration goes ahead, by the us president appears to be in no mood to ease the tensions that have already pondered nervousness on the world stock markets. is it any further retaliation will be met with even more tariffs. how our financial markets reacting to all of this? let's go to our asia business hub where rico hizon is following the story. no surprise at all to see heavy losses across the board in asia, really. that's right. a sell—off in both the chinese exchanges and the hong kong stock exchange. basically driving asian equities to four—month lows after president trump threatened new ta riffs after president trump threatened new tariffs on chinese goods and beating warning of countermeasures. in an escalating tit—for—tat trade war

between the world's two biggest economies. at this point, the trade frictions are unnerving financial markets with investors and businesses increasingly worried that a full—blown trade battle could derail global economic growth in 2018 and 2019. when you talk to market analyst, they say donald trump appears to be employing a similar tactic that he used with north korea. you have tough rhetoric and threats first in order to gain and threats first in order to gain an advantage in negotiations. but also adding to the market pain, shares of a chinese telecommunications giant are plunging at one point more than 20% on the stock exchange after the us senate passed a defence spending bill that basically torpedoes the trump administration's deal. the tech giant has been on its knees since april when trump imposed

crippling sanctions after accusing the company of violating trade arrangement. so far, most of the markets in negative territory, it looks like it will finish, it will all finish in the red by the end of the trading day. thank you. a uk low—cost carrier is expected to announce a spiralling loss for this past year. flybe was forced to cancel 99a flights in the fourth quarter due to the so—called ‘beast from the east'. and that's likely to have a chilling effect on profits. the now defunct airlines airberlin, alitalia and monarch are a stark example that it doesn't take much to bring a no—frills airline crashing down. low—cost carriers account for more than 40% of all scheduled airline capacity in western europe, up from just 9% 15 years ago, meaning the competition between so—called legacy airlines and low—cost alternatives is fierce. and the market is projected to grow, reaching $208 billion by 2023.

this is largely thanks to growth of the travel and tourism sectors worldwide, but also an increasing middle class. with me isjohn strickland, aviation and airlines specialist with jls consulting. nice to see you. if you talk about flybe, how bad is it? they are expecting a loss of £20 billion. they had a tough year with bad weather, causing flight cancellations. they also had maintenance costs. 0n the revenue side they were doing quite well. they have a unique position, they area uk they have a unique position, they are a uk regional carrier, but they are a uk regional carrier, but they are shackled because of limited market potential, quite a high tax regime to tickets on domestic flights. what is the outlook for flybe? they have to match the

reve nu es flybe? they have to match the revenues they achieve. they had a peak fleet, too revenues they achieve. they had a peakfleet, too many revenues they achieve. they had a peak fleet, too many aircraft. revenues they achieve. they had a peakfleet, too many aircraft. the previous management had been too ambitious. they have about 80 planes. they are trying to trim that down progressively each year. if they don't, it would be a bigger challenge. why is the lack of flybe and the others we mentioned really struggling when others seem to be fearing really well? is itjust about their market share, and they can ride any turbulence? it is a combination of factors. cost is a key element. we hear people talking about that and we also have a position of polarisation. the likes of the others are so big and dominant, they have enormous positions in markets right across europe. and they will get bigger potentially. they have put bids in for a alitalia...

potentially. they have put bids in for a alitalia. .. we have seen some picked up by an austrian company and the aircraft they have, they can with an enormous amount of capacity into airport. as other airlines fail, and we don't know if alitalia will ultimately fail,. the price of oil has been a factor, rising significantly in the last 12 months. we don't know where it is headed next, but that has been a problem for airlines to have two think in advance where the price will be. and we see different airlines performing differently. rya nair we see different airlines performing differently. ryanair have cost certainty over the forward period, 12 to 18 months ahead. and some airlines are better placed than others. if you have a larger of fleet of fuel—efficient aircraft, which ryanair do, you are better placed to handle those challenges. good to see you. thank you very much

the coming in. when we hearfrom flybe, they released their results, we will take you. —— we will update you. now, let's brief you some other business stories. the board of german car maker volkswagen has failed to come up with a new leader for its audi division after a 6—hour meeting monday. the previous boss, rupert stadler, was unexpectedly arrested over his role in an emissions cheating scandal that has spread from its core vw brand to its luxury audi division. fujifilm has sued the firm xerox for over $1 billion for breach of contract and estimated damages. the printer and photocopier company walked away from a planned merger earlier this year. the deal would have seen xerox merge its business with an asian joint venture. the company operates with fuji, handing fuji majority control. the auditing work of one of the world's big four accounting firms has been sharply criticised by the industry's watchdog in the uk. kpmg audits had shown an "unacceptable deterioration" and will be subject to closer supervision, the financial reporting

council said. it added that all the big four, which also include pwc, ey and deloitte, needed to reverse a decline. that show you the markets once again. it has been pretty bad. that is the clothes in the united states late yesterday. the future looking ahead to the us open are all very negative. let's look at asia if we can. i don't know if we have those numbers... no. that is how europe close yesterday. europe will react today when it opens in a few hours time. hong kong is down 2.5%, japan's market was down nearly 8%. the fear factor is very much in focus. safe havens like the japanese yen are back in favour, which does not help japan either. that's it for

business briefing this hour. up next, newsbriefing — we'll take you through the stories making headlines in the global media today. a minute's silence will be held this morning to mark the first anniversary of the finsbury park terrorist attack. one man died and nine others were injured when a van was driven into a crowd of people near to a north london mosque. this report from jane frances—kelly. london remembers once again, overnight london united was rejected in finsbury park wear a year ago darren 0sborne deliberately ploughed his van into muslim worshippers. the nao said the projection was an act of solidarity and a symbol of unity. the message has been used to mark

the four terrorist attacks that hit the four terrorist attacks that hit the capital in 2017. they still vividly remember the horror. the capital in 2017. they still vividly remember the horrorlj the capital in 2017. they still vividly remember the horror. i saw the van coming towards us and i moved away from their and i saw people getting hit and some people we re people getting hit and some people were under the van. this 51-year-old lost his life. he collapsed in the street before the attack but he was alive and being helped by fellow worshippers. very quiet man, very nice man. the prime minister theresa may praised the bravery and spirit of the community and released a statement in which she said: this saturday, the islington forum will be hosting an event that the muslim welfare house in which people from all walks of life and all

faiths have been invited to remember the attack, but also celebrate the bonds of aid diverse community. as of today, you'll no longer be able to buy cosmetics containing plastic microbeads. face scrubs, toothpaste and shower gels containing tiny pieces of plastic will no longer be on sale. it's part of efforts to prevent them being washed down the drain and ending up in rivers and seas. this is the briefing from bbc news. the latest headlines — president trump has threatened tariffs on a further $200 billion of chinese goods if beijing doesn't drop plans for duties on us imports. england celebrates a successful start to their world cup campaign after beating tunisia 2—1 thanks to a last—minute goal from harry kane. he now, it is time look at the stories that are making the headlines the headlines in media across the world. we begin with the guardian, and us

president donald trump who said. donald trump said yesterday that the us would not be a "migrant camp loke what's happening in europe. trump also accused german chancellor angela merkel of allowing immigrants to "violently" change germany's culture. abc news online reports hundreds of children are being kept in cages at a border detention facility in texas. the arrests came as part of president trump administration's "zero tolerance" policy over border crossings and has resulted in the separation of families. the telegraph says the war against cannabis has been "comprehensively and irreversibly lost", lord hague, the former conservative leader, said as he urges theresa may to legalise the drug. 0n the front of the ft is a picture of rudy stadler, the chief executive of luxury—car maker audi.

he was arrested by german authorities for his alleged involvement in the volkswagen diesel emissions scandal. and finally in the times england are off to great start in russia having won their opening game of the world cup. they beat tunisia 2—1 after captain harry kane came to the rescue, scoring both goals. so let's begin. with me is stephanie hare who's a political analyst and commentator. stepney, let's get started. now, harry kane is on every front page but so is donald trump. pointing the finger at angela merkel in particular. donald trump, his

spokeswoman kellyanne conway, introduced the world to alternative that is. he is talking about crime in germany being way up but the fact is it is at 30— year record low but he this story and it goes out on certain media channels were at place to his base. this is about a reaction to the german chancellor allowing a million refugees into germany and this did lead to a spike in support for the alternative parties that has had a knock—on effect in germany but not what he is saying. in some ways, there were events that happened.