hello, you are with sunday brunch this is business live from bbc news with sally bundock and ben bland. the tit—for—tat trade war between the us and china escalates — america threatens a further 10% tariffs on $200 billion worth of chinese goods. live from london, that's our top story on tuesday 19 june. .. the threats are going back and forth and it is seen as a major escalation in the row over trade which threatens to take the us and china into an all—out trade war. also in the programme... the money in marajuana — canada approves laws for the recreational use of cannabis — the first major nation to legalise the drug — opening up a market worth billions. talking of markets, you can see all

the share markets are heading south because the fear factor is back. what better way to shrug off those global trade tensions than chilling out on holiday? tourism literally makes the world go round — an industry employing 300 million people. we'll get the inside track on this fast—growing sector. today we want to know... where cannabis has been legalised for recreational use, there has been a financial boost to the local economy. should the uk follow canada's lead? share your comments #bbcbizlive. a very warm welcome to a packed programme, as ever, we'll get cracking with the latest threats coming from the us president to impose tariffs, additional tariffs on chinese goods, in a move that threatens to take the two nations into a trade war... donald trump said he would

impose an additional 10% tariffs on $200 billion of chinese goods if china "refuses to change its practices". just last week, mr trump announced that the us would impose 25% tariffs on $50 billion worth of chinese goods. beijing's response was swift. it said it would hit 659 us products worth $50 billion, including agricultural products, cars and marine products, with a similar tax. china has said it will match any further tariffs. ben, over to you. miranda carr, china macro strategist at haitong internationaljoins me now. miranda, we heard that they are setting up the next stage of this trade war. can we call it that when there is this escalation from $50

billion to $200 billion worth of goods are we now in trade territory? we are certainly getting into quite a different realm because the tactic seems to be think of a number, double it and if that doesn't work double it and if that doesn't work double it and if that doesn't work double it again! once you get to this stage it doesn'tjust affect china, and will affect its global partners and other asian manufacturers and also the consumers in the us. it's very, very difficult to get $200 billion worth of goods targeted without wider ramifications. what happens if in response to the american presidents latest threat, china comes back with a similarfigure? latest threat, china comes back with a similar figure? the trouble is they can't because they don't import in us goods to slap $200 billion on. they will probably come back with something similar but then they'd have to do something different in terms of targeting us companies operating in china. if you think of

apple or some of the us companies which operate and make a lot of money in china, and that could be one target that would take it into yet another ratcheting up the tensions. what you are getting now is that this should lead to further talks. it's putting cards on the table and getting to dogs is probably the next stage. —— getting to talks. what is needed to placate eve ryo ne to talks. what is needed to placate everyone and get away from this brinksmanship? it will be hard to climb down from escalating tensions but one sticking point from last time when wilbur ross went over was that there was no binding commitment from the chinese side and not enough movement on the tech. it is as if trump is going for an all or nothing approach and wanting a massive deal

which would include tech, agricultural imports and opening up of markets rather than piecemeal negotiation. the other issue that he has is the intellectual property theft. and that requirement that if foreign companies want to access the chinese market they have to partner with chinese firms and inevitably as a result technologies and trade secrets have to be shared. another sticking point is the made in china, the us wants china to stop becoming a leading global technology giant but that's not really negotiable, thatis but that's not really negotiable, that is part of the chinese presidents plan to rejuvenate the chinese economy and its redevelopment. if you get to that stage it will be a key sticking point. good to get your take on that, miranda, thank you. let's take a look at some of the other stories making the news. the board of german car maker volkswagen has failed to come up

with a new leader for its audi division, after a six—hour emergency meeting. it comes after chief executive rupert stadler was arrested as part of the investigation into emissions test cheating. fujifilm has sued the firm xerox for over $1 billion for breach of contract and 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 it operates with fuji, handing fuji majority control. an australian court has fined apple $6.5 million for refusing to fix iphones and ipads that had been serviced by third parties. australia's consumer watchdog took the tech giant to court last year following complaints from users about faulty devices. apple admitted that it misled 275 people about their rights to remedies such as repairs and replacements. as always, our biz live page is

updated throughout the day. there's a discussion on the about the us— china trade war and a discussion about how much the us mid—term elections play a part, what extent politics influences this. comments from analysts. that's just one of the stories you can scroll through at your leisure and see all the things being covered on the business live page. the us senate has voted to reinstate a ban on chinese telecoms equipment maker zte doing business with us—based companies. the ban was put in place after the company violated sanctions on sales to iran and north korea, but injune this was controversially lifted by the trump administration. let's go to monica miller in singapore who has more. good to see you, monocle. so all

change again for zte. good to see you, monocle. so all change again for zt e. china's largest telecommunications giant, its shares have taken a nosedive today, they lost $1.1; billion in value. as you havejust today, they lost $1.1; billion in value. as you have just explained, at the moment the future of zte rests in the hands of us lawmakers who have just passed this defence bill. it poses serious barriers to what president trump had arranged with the chinese presidentjust two months ago. if we go back, the us commerce department had banned companies from selling goods to zte as punishment for violating sanctions, doing business with iran and north korea. however president and north korea. however president and a mac through the chinese president a lifeline because there we re president a lifeline because there were people who were going to be out of work, thousands of people u nfortu nately of work, thousands of people unfortunately at this point it has come down to republicans versus

democrats, they still see it as a security threat. what holds now is that the house of representatives has to come up with a similar bill in orderfor presents has to come up with a similar bill in order for presents cheater to sign it or he will have to use his power of veto. we will have to wait and see. thank you monocle. in a moment we will look at how the trading session is developing in europe, we've been going for a0 minutes and you saw the numbers, it's looking pretty bleak. and paul blake has the details about what's ahead on wall street today. a busy week the new summer housing market, tuesday sees the release of housing data for the month of may, they are expected to ship construction on 1.3 million new homes was begun last month, which would be a rebound from lower numbers in april. in corporate news softwa re numbers in april. in corporate news software com pa ny 0 ra cle numbers in april. in corporate news software company 0racle reports quarterly earnings, forecasts are supposed to be rising fx to strong demand for its client software. and delivery giant fedex will also release its earnings, it is expected

that in the fourth quarter the growing demands of the e—commerce gave its revenue healthy boost. the demand for fedex delivery services is often taken as a signal about the health of the us economy over all sorts of investors will have a keen eye on its predictions about the rest of the year. jane and family we re rest of the year. jane and family were chatting so i will tell you what is coming —— chain and sally we re what is coming —— chain and sally were chatting! jane sydenham is investment director at rathbones investment management. we were just talking about retail. i was saying that i have noticed on the ftse 100 was saying that i have noticed on the ftse100 this morning some massive losers including debenhams, a department store in the uk, shares down a0% on a profit warning. but also foot asylum, it said sales were quite a bit in the year but they are worried about future months, and its shares are down a2%. there is real

concern. it's really tough in the retail sector, seismic shifts in terms of the way people are spending money, consumer patterns with visiting shopping centres... people don't want these shares in their portfolio right now. this to much uncertainty about the way they are headed. scary. i suppose those relying on supply chains outsider hit by the weakness of the pound which we are seeing at the moment mainly because of this uncertainty about whether the bank of england is going to keep up with the fed. sterling hit the low point for 2018 yesterday, partly because it is not likely we will see an interest rate increase this month, maybe not until august all of the some of the uncertainties around the brexit negotiations, sterling is under a lot of pressure and that increases import costs as well which is also

making life tough for retailers. and theissue making life tough for retailers. and the issue of the trade war, notjust the issue of the trade war, notjust the us and china impacted by this. if it does escalate further, if there is no resolution to this...m is about supply chains and when you look at how many countries contribute to the final, to a consumer good, it can be 20 or 30 countries who supply goods into that chain. so it affects everybody. it's going to be an issue that needs to be resolved, otherwise it has an impact globally. how worried are you, having listened to miranda and ben earlier and looking up the markets, do you feel the fear factor is back? are you concerned? in recent weeks markets have believed this will be resolved and the numbers are not so frightening. for doubling the number is quite a different story. it comes back to

supply chains and whether it will affect global growth so at the market markets are pulling back and wondering about that. —— at the moment. it could just be an aggressive negotiating tactic but markets are starting to get nervous. jane, thank you. i think we need a holiday! everyone loves to chill out on holiday. tourism literally makes the world go round — an industry employing 300 million people. we'll get the inside track on this fast—growing sector. you're with business live from bbc news. how do we get around when we go on holiday? many of us book a no—frills carrier. flybe has posted its full—year

results this morning, and it's not good news. no, the budget airline's losses have soared to a new height of £20.5 million, which it blames on poor weather and rising costs. with us now isjohn grant, senior aviation analyst at flight intelligence firm 0ag. john, we were expecting bad news. flybe shares down 3% this morning, tell us about their struggle. flybe shares down 3% this morning, tell us about their strugglem flybe shares down 3% this morning, tell us about their struggle. it is really difficult for them. they are a fragmented uk operator with a number of bases in secondary markets. and it is tough. and they pay a lot of apd and their market is price sensitive to that. could you explain a pda? airport passenger duty. for a domestic passenger they charge up to £22 which is really punitive when they are collecting fa res punitive when they are collecting fares which cost no more than £35. so it is damaging the rusticity of

the market. what is the outlook for flybe, will it be ok? think it is a really tough environment for them and they are a long way from being ina and they are a long way from being in a safe position at the moment. the price of fuel will be up by about 60%, that's not baked into much of the numbers you have seen today said that it's a tough future outlook for them. do you think we will see consolidation and fewer independent carriers and people merging to survive? inevitably. it is no irony that the most profitable part of the industry at the moment is in north america where the us airlines have consolidated, nearly 50% of the global airline profits last year there. it is inevitable we will see it happen in the next 18 months. thank you for your time on business live. plenty more on the business live

page. hornby lost £10 million last year, even more than the year before. shares stand today. very big losers today on the london markets. you're watching business live. our top story... the trade war the twin us and china is escalating. the us threatens a further lot of tariffs on chinese goods —— between the us and china. in london, lots of companies really falling today. debenhams down 1a%, hornby at the maker of trains, model

railways, 1a% down. let us talk holidays. and now let's get the inside track on the hotel industry. travel and tourism is one of the world's fastest—growing sectors, with bookings hitting close to $1.6 trillion in 2017 — a staggering 10.2% of global gdp. the industry employs roughly 300 million people — that's equivalent to one in ten jobs in the global economy. and hotels, at the core of the sector, are expected to continue a run of strong performance with 5—6% growth for 2018. well, one company carving out a slice of all this is minor hotels and we're joined by the company's chief executive, dillip rajakarier. good to see you. welcome to the programme. so, where do you see it, for this sector, hotels, where are

the opportunities, the growth? the growth is coming very strong in asia, looking at the asian travellers travelling today, actually, europe has still not had the benefit of the asian segment travelling to this part of the world. we only see about 7% of the asians travelling to europe. if that chefs to 10—12%, a staggering number, that is where we see the growth opportunity —— if that shifts. in band as well. in asia today, we are privileged, in one of the strongest growing markets in asia —— inbound as well. the strongest growing markets in asia -- inbound as well. and tell us what you have seen because prior to working for minor hotels, you were headhunted, you worked for the orange express. yes. this is luxury travel, we're talking about, and minor hotels is in that area —— the

orient express. any area of tourism is extremely competitive, especially the luxury end, if you have a lot of money to spend, there is a lot of choice out there, how do you stand out? it is a good question because what we talk about is, we do not talk about luxury hotels, everyone talks about luxury hotels these days, mandarin, four seasons, we talk about guest experiences were today our guests need more than sea, sun and sand. what we talk about is stories, the guests can come to our hotels and go back with fantastic stories where they have engaged with the local culture. is that feeding into the social media world we live in now that we want to... i am looking at these pictures, these are some of your results, looking incredible, but we want to show off our story on social media, facebook, instagram, all of these various areas, is that part of your

thinking? yes, social media today is really driving the demands of the guests and where they decide to go to. for example, our hotel in the maldives, the most instagrammable hotel in the world, we won that award last year. i did not know there was such an award! you must state in other places and travel a lot to get an idea of what works well, i wonder what you come across, the most common mistakes that hotels make, that if they got it right, it would make a difference? there is a lot. the first one is most hotel chains focus on cookie cutter approach. when you walk into some of the hotels, you know where to find what. the other thing is, the people. the people make the biggest

difference. the people who work in the hotel? yes, and that is what we focus on, the software, rather than the hardware, and making sure our guests the hardware, and making sure our gu ests have the hardware, and making sure our guests have a fantastic experience. you are expanding significantly in europe, you are buying a big stake ina europe, you are buying a big stake in a spanish hotel chain, you will be going from over 100 hotels to over 300, how do you keep the experienced genuine when you are getting so big? it is very easy because the brand is very segmented. for example, the ana ntara because the brand is very segmented. for example, the anantara brand is seen as for example, the anantara brand is seen as the top end luxury hotel brand today and that will never overla p brand today and that will never overlap with other brands. we have 37 hotels creating fantastic guest experiences, in great cities, in first tier countries. we have other brands providing different guest experiences. we are not a company where we have a multitude of 30, a0 brands which conflict with each other. the brands complement each other. the brands complement each

other. well, it sounds extremely tempting, i have to say. thank you for coming in. great to meet you. thank you very much. let's see what other stories are being talked about on social media. first, here is how to stay in touch. stay up—to—date on the bbc‘s business live page, with insight and analysis from our team of editors from around the globe. we want to hear from you too. get involved on the business live web page. 0n twitter, we are at bbc business and you can find this on facebook. business live, what you need to know, when you need to know. jane is

back to go through the stories in the papers with us. lord haig, member of the uk upper house, former conservative leader, he has said the war on cannabis has been lost and it is time to look at legalising it the recreational use —— lord hague. canada has ta ken recreational use —— lord hague. canada has taken that step. with a potential boost to the economy. so it seems. there is certainly evidence that it is the case, commercially, there are benefits. quite aside from the ethical and moral questions, but from the medicinal sector, that perspective, there is clearly a market and there is helped that quite a number of patients could get by using cannabis based drugs. there are commercial as

well as ethical questions. we were asking you at home what you think and your thoughts on whether the uk should take this step. quite a lot of reaction. someone says, places like amsterdam have the highest rate of heroin usage per capita, a gateway drug. we had another one who says, time for a change but purely for pain relief, not a free for all. richard says, legalise for medicinal reasons, maybe in cannabis cafes, but not on the streets. there needs to be strict punishments, as many do not want to smell it in the air. a few was saying in hammersmith, it is known as little amsterdam because you can just smell it in the streets. i go to colorado frequently on holiday because i have family there and it is legal there the recreational use and you can spot

that in some places. very noticeable in some places. this apple fine in australia. for not letting customers get screens repaired by anyone other than apple. the australian consumer watchdog was clearly uncomfortable but apple customers did not know their warranties were not effective if they had a third—party repair to their device. they have insisted the wa rra nty their device. they have insisted the warranty should be valid regardless. it sounds like an expectation on management... in management of expectations issue. apple will have to improve the way they communicate with customers. i do not think the $9 million fine will keep apple awake at night. that's it from business live today. we'll see you again tomorrow. you may have had a fairly

uncomfortable night the sleeping. temperature is no lower than 17, 19. warm air in place. behind the weather front, some fresh conditions across scotland, northern ireland. temperatures here a bit lower, about five, seven. sunshine in northern parts to start. cloud increasing and rain moving in later. early morning cloud and drizzle and rein in places, brighter skies for england and wales. temperatures still getting up to 21,20 and wales. temperatures still getting up to 21, 20 four. through tonight, the rain will intensify slightly across scotland as it pushes further east. it will gradually drift south into northern england and north wales by the early hours of wednesday. warm and muggy night but not quite as warm as last night. the fresher conditions further north. wednesday, that area

of rain will move south. it peters out as it moves south and patchy rain into england and wales. the south—east, brighter skies and sunshine. it will still stay on the warm side there. but you notice the greens, the blues, further north and west. behind the rain and the cloud, fresher feel. that fresher weather will gradually extend to all parts as we go into thursday. the cold front moving into the near continent. all under the influence ofa continent. all under the influence of a north—westerly wind. after a sunny start on thursday, more cloud in the afternoon. it should be drier and there will be sunny spells as well. it will be just a little bit cooler and fresher. the oranges not quite as orange or red. temperatures in the south—east down by a few

degrees. further north, similar to today and tomorrow. friday, the weekend, we have this big area of high pressure which is slap bang across the uk meaning it will be mostly dry on friday and into the weekend, sunny spells as well, lots of settled weather. temperatures not doing too badly, 19—25. have a good day. hello, it's tuesday, it's nine o'clock, i'm victoria derbyshire, welcome to the programme. has britain lost the war on cannabis? the former leader of the conservative party, william hague, thinks so and remarkably he is now asking whether it should be legalised for recreational and medicinal use. but as more and more mps in all parties call for a rethink, can they convince theresa may? it's the argument over the medicinal use of cannabis that led to lord hague's comments. just after ten, we'll be speaking

to the mum of a six—year—old boy who she says suffers from up to 30 seizures a day and whose condition is helped by cannabis oil, which is currently illegal. she met theresa may three months ago and