this is business live from bbc news, with ben thompson and sally bundock. china fights back — as the trade war intesifies. a four—fold escalation in the battle between the world's two biggest economies, as president trump slaps more tariffs on more chinese goods. live from london, that's our top story on tuesday 18th september almost 6,000 chinese products will be subject to import duties, in the biggest round of us tariffs so far. we'll get reaction live from tianjin in china. also in the programme: the president of south korea arrives in pyongyang to huge fanfare, he has with him leaders some of the country's biggest conglomerates including samsung. what are the opportunities and obstacles for them 7 and what are the obstacles?

financial markets are trading in europe, they look like this and at the moment seem unfazed by the new ta riffs the moment seem unfazed by the new tariffs coming from the us on chinese goods. also in the programme. . . its mission is to help the world's businesses run better and improve people's lives. the company? it's the business software company called sap. we'll get the inside track on how it tries to do that. as last night's emmy awards in la made clear — there's plenty of top tv choice right now. so today we want to know — is this the golden age of box set binging? are you hooked on streaming? let us know what you're watching — just use the hashtag #bbcbizlive. hello and welcome to business live. send us your comments, we will share them later. the trade war between the united states and china

has taken a dramatic turn, escalating four—fold. as expected, president trump has announced tariffs on another $200 billion of chinese imports. they will take effect next monday. lets take a look at the finer details. the latest tariffs start at 10%, but will rise to 25% from the start of next year unless a trade deal is agreed between the two countries. the higher import taxes will apply to 5,745 items — which will include handbags, rice and textiles. it means half of all chinese goods are now subject to tariffs. in the past hour, beijing has said it has no choice but to retaliate. president trump has warned that if china does so,

the us will go ahead with what he calls "phase three" — a further $267 billion worth of tariffs, covering all chinese imports to the us. the news came as thousands of business leaders and politicians from around the world are in the eastern chinese city of tianjin for the latest world economic forum, also known as the summer davos. we'll cross live to karishma vaswani in tianjin shortly but first, let's get some reaction from new york. kim gittleson is there. the notable thing is certain items have been left off the list, including smart watches, at the behest of abdulkadir masharipov, which said it did not want to see ta riffs which said it did not want to see tariffs impose a match which would impact on the abdulkadir masharipov watch. —— at the behest of apple,

which said it did not want to see tax imposed on that which would impact on the apple watch. the us said of china retaliated in kind, it was prepared to tax the totality of chinese imports. 0ne was prepared to tax the totality of chinese imports. one of the interesting things is that the reason that the trump administration feels safe in imposing these tariffs, which will hate everything from toys to furniture, is that the us economy is doing quite well right now and they have done the calculation that american consumers can withstand slightly higher prices because there is quite a bit of political support from rectifying what the united states has said is an unfairtrade what the united states has said is an unfair trade relationship with china. that is kim in new york. karishma is at the world economic forum in tianjin. interesting, with the last few minutes we have heard china says it has no choice but to fight back, so the escalation continues?

absolutely. i have to say this was to be expected. every time we have seen china respond to the united states when it has come to previous rounds of tariffs, that is what beijing has consistently said, it has to retaliate because it has no choice, it has been put in this position, it says, by the us. china has consistently tried to portray itself as a victim of the trade war and has always said it wants to negotiate and have discussions with washington, in fact before these latest tariffs were announced there we re latest tariffs were announced there were reports that the chinese and the americans would sits down and have a heart to hearts and have a discussion over how they could resolve some of those long—standing issues. but what was said by the chinese when these tariffs were announced earlier today is that if

they came into effect, those talks would most likely be. the most interesting thing going forward is the fact that beijing is pretty much ina the fact that beijing is pretty much in a corner as a result of what trump has done, according to the white house, if china retaliates then $267 billion worth of chinese goods could see tariffs placed on them as well. that would be pretty much everything china sells to the united states. karishma, what delegates saying about this? how concerned are business leaders in china about where this is going? every time i have spoken to a chinese business leader or academic about the impact of the tariffs on the chinese economy, most of them have dismissed it. they have said we have dismissed it. they have said we have a massive domestic economy and can withstand the impact of the ta riffs can withstand the impact of the tariffs so far. if everything that

china makes her the united states sees tariffs placed on its going forward , sees tariffs placed on its going forward, i think it might be a different picture, but it is not just the chinese and us economies that people here are worried about. businesses all over the asia—pacific region and the world are concerned about what looks like increasing uncertainty as a result of the escalation in the trade war. what you get when you have uncertainty? businesses can't plan for the future. they cannot decide if they will build a new factory or create morejobs, all of which will build a new factory or create more jobs, all of which comes at a time when the global economy could do with a lot more certainty instead. for now, thank you. i know you will stay across that with any developments. charisma of al shahrani in tianjin. —— karishma vaswani in tianjin.

let's take a look at some of the other stories making the news. a british cave diver is suing tech billionaire elon musk for defamation after his repeated claims that the diver is a child abuser. vernon unsworth helped rescue i2 thai teenagers and their football coach from a flooded cave in thailand in july. mr musk has made several accusations against mr unsworth without evidence, including that he was a "child rapist". 0ne us firm likely to suffer the consequences of a drawn out trade war is fedex. it's reported quarterly profit which missed wall street estimates, mainly due to employee compensation and other expenses. its shares fell over 3% in after—hours trade. the firm is considered one of the bellwethers for the us. economy. formula one has agreed a $100 million sponsorship deal with a number of betting companies. fi's owner liberty media has signed a contract with inter—regional sports group for global rights to gambling sponsorships in the sport. the deal comes at a time of growing concern about the influence of gambling companies over sporting teams and events. south korean president moonjae—in is in pyongyang today

for his third meeting with the north korean leader. but this time, he's bringing with him, the bosses of some of korea's biggest multinational conglomerates, including the heir to the samsung empire — who was only released from prison in february. let's go to our asia business hub, where monica miller is following the story. good to see you. this is all about reviving talks with regard to denuclearisation, but at the same time the business leaders have their own agenda? they really do, and as you just mentioned, eyebrows were raised when the error of samsung was invited tojoin in raised when the error of samsung was invited to join in this delegation. he is the son of south korea's richest man and he was arrested and released in february after the charges were reduced against him. 0ne charges were reduced against him. one of those was the bribing the

friend of the former president. some have been questioning president moon, whether he is softening on his anti—corruption drive. this is one of the points that brought him to office. samsung is south korea's biggest company and it is hard to ignore them and some of the benefits which could come of this plan works is that samsung electronics have smartphones, televisions and the opportunities that these two can share could really be a diplomatic move. at this point he kind of house to look the other way to some degree in order to make profitable and peaceful ways with pyongyang at this point. thank you, monica. we are keeping a very close eye on everything going on pyongyang today and in the next of days. you may think the asian markets did well considering we had the news

from the white house about the ta riffs from the white house about the tariffs on chinese goods, but lots of this was priced in and markets have been gearing up for it for a few weeks. we saw a bit of an upwards surge. hong kong" 5% yesterday, japan was closed on monday and is up by 1.4 today. —— hong kong was up by 0.5% yesterday. shinzo abe is expected to win the election in japan this shinzo abe is expected to win the election injapan this week, that has brought comfort to markets. these other european markets, pretty mixed, fairly flat, no big corporate stories moving markets in but we will have thoughts about trade and what it means in the months ahead for the biggest economies in the world, and the knock—on effect in places like europe. back to you, ben. joining us now is sophie kilvert, who's the senior investment manager at seven investment management. look, what is interesting is the escalation of the trade war. we knew

there would be retaliation from beijing, but nonetheless it will put the markets and edge? a bit, and we are very much worried about the uncertainty that is going on at the moment, as karishma said, and it adds a bit when markets could do with certainty. the us economy is still doing well, the markets are still doing well, the markets are still doing well, but if all goods suddenly coming into america, particularly from china, cost 10% more, how much can the us consumer cope? if we see the inflation rise in the states, the federal reserve will have to raise rates quicker. i think the route ramifications of the trade war, we have not even got to the start. when we talk about the impact on the us consumer, they have been clever about the projects that the tariffs are on, not unfinished projects but in many places component bits going into products. the us consumer does not notice much

in the relative midterms in november, when they think president trump is doing his bit to make america great again? —— in the run—up to midterms? america great again? —— in the run-up to midterms? yes, they will hate in the new year, particularly free see the 25% tariffs them. at the moment it is reasonably neutral and the us probably has the upper hand, but there is a long way to go, still. thank you very much, sophie. just quickly, do you binge on box sets? not really, i don't have a long enough attention span. not really, i don't have a long enough attention spanlj not really, i don't have a long enough attention span. i don't have the time, i would love it. you get involved in one and it is so tempting. we have one reviewer who said he discovered the crowd, he watched it foran discovered the crowd, he watched it for an entire week from beginning to end. —— he discovered the crown. that is a staycation! you need time off work! still to come... how the cloud is the future for

the business software company sap. we'll hear from its youngest regional president, brian duffy. you're with business live, from bbc news. the battle between our big supermarkets goes on. so who's up and who's down? well, the latest figures take account of that crucial world cup period, where more of us bought food and drink — and, of course, the hot summer weather. fraser mckevitt is from kantar worldpanel, who compile the figures. hejoins us now. good morning. what do they tell us about our habits, and which supermarkets did well out of the good weather? i think aboutjust eve ryo ne good weather? i think aboutjust everyone desperate rising just about everyone desperate rising just about every one. retailers can be quick to blame poor weather, but run by how hot the summer wasn't how many sporting events, it made people spend more. the overall market up

almost 4%. this has been a market in the doldrums in recent years. particularly notable is the co—op, up particularly notable is the co—op, up 8.5% yearon particularly notable is the co—op, up 8.5% year on year. fundamentally behind that is that when it was hot, people wanted to shop locally, not go to the big supermarkets, so they went to convenience stores. the likes of tesco express did very well. and a welcome boost, the supermarkets have had such a tough time and it is so competitive, many announcing huge changes because of that, like sainsbury‘s and asked ? changes because of that, like sainsbury's and asked? it is a very tough environment and the fundamentals have not gone away, one good summer does not change the strategic outlook and the fundamental is aldi and lidl, the discount retailers, have grown very quickly, they have up to 13.1% market share, which has squeezed everybody else and is one of the driving forces behind the proposed asda and sainsbury's merger. in the

retail world is awash with speculation about what tesco will announce, are they going to announce their own discount brand ? announce, are they going to announce their own discount brand? the other issueisif their own discount brand? the other issue is if we will have a very warm autumn, unusually warm, we will not buy the winter gear on sale at the moment, what is a good summer will hate in the winter? what happened over the summer camps do nothing in autumn, christmas is exceedingly important for all of the supermarkets. we need to keep an eye on the fact that prices are creeping up on the fact that prices are creeping up again, like—for—like growth three inflation has reached 2%, not high by historical standards but it is £1.64 extra on the average weekly household bill, £85 over a year. people might be keeping an eye on their shopping bills and looking to save a bit. thank you. you're watching business live. our top story: in the past hour, beijing has said it has no choice but to retaliate against the latest us tariffs. president trump has made good

on his threat to slap import duties on another $200 billion of chinese goods. we are keeping a close eye on the impact that is likely to have. a quick look at the numbers this morning. a mixed bag, sally touched on them earlier. in certain about what the trade tariff war could mean for individual businesses. it is easy to talk about the big economics of this but remember, that costs many businesses on both sides of this trade walk and that could have an effect on the bottom line. —— trade war. technology has revolutionised the way we work and the software that keeps our offices working is key to that. european tech giant sap is one of europe's largest providers of workplace software. it was founded by five friends back in 1972 — when technology was very different. the company has its main base in germany, but has expanded rapidly.

it now operates in more than 180 countries. so what's it like running the firm in europe, the middle east and africa? vishala sri—pathma spoke to brian duffy, the man doing just that. she began by asking him about his rise through the ranks. so, well, i've been with sap for 13 years. i started on a very different path. i was actually a lawyer within sap. i had the opportunity to work in the us and japan and in china as well. i had a global role. that allowed me to spend a lot of time with customers, it allowed me to hear what their challenges were, how they needed sap to support them in many different respects. and really, for me to transition from that role, where we were putting the customer first, into this role, where i'm still focused on the same thing of putting the customer first and having customers for life was really a natural step for me to take. did you set out to become the boss? i would say i always had my eye

on how far i could go, how far we could get to. the great thing at sap is that we have a culture where we really want to promote talent, where we take 1,000 individuals and we send them to california, to an academy where we prepare them to come back into the workforce. and really, there is a culture of attracting talent, retaining talent, developing talent, and i'm really fortunate that i was one of those within sap who got the benefit from these programmes. the tech industry is very male dominated. it's come under a lot of criticism for that. why do you think it has this huge hurdle when it comes to diversity? well, i think the pace of change that there is in the world right now has never been as fast as it is. and at the same time, it's never going to be as slow as it is right now either. and when you think of that, it's critically important that companies today reflect the world that we live in. so for us at sap, diversity is more than the colour of your skin or your sex, it is about having a workforce that truly reflects the world

that we live in today. how important is data to your business? so, i think when you look at the world today, there is devices everywhere. there's lots and lots of data. and data can actually be something which is used for good in the world. so, in 2011, as i said, i was injapan and i experienced my first ever earthquake in japan. and then three days later, i experienced my second earthquake, which was a really large earthquake, resulting in the tsunami and 15,000 people died. as a result of that earthquake, we partnered with an organisation hackerzan to install over 100,000 monitors on buildings. and these monitors are basically collecting data to tell us if the buildings are safe. now, five years ago, ten years ago, this wouldn't have been possible and it wouldn't be possible to do this literally in a matter of months, but that's what we can do now, because of the accessibility and the availability of data. and so where do you think the future lies for sap? yes, so i think for us in this part of the world

and for sap as a company, we are committed to making sure that all of our customers are going to be successful. we have a huge legacy of customers, we're making customers for life. we're going to be moving a huge amount of those customers to the cloud. and we're going to be allowing our customers to innovate, to find new ways to market and to, like we said, to help the world get better and improve people's lives. that was brian duffy. elon musk‘s company, spacex, has named the first passenger it plans to fly around the moon. it was not then, you missed this! he is going to lobby! japanese billionaire yusaku maezawa will take off on the big falcon rocket, which was unveiled by spacex in 2016. that name! i am laughing at the name. you are laughing at how i said it.

anyway, go one. 0ur north american technology reporter, dave lee, has more. i'm very glad to be here. i choose to go to the moon! cheering this is japanese billionaire yusaku maezawa. he made his fortune with music, retail and fashion, and more recently has become one of the world's most lavish collectors of art. in 2023, he may become the first private passenger to go into space. he said he hopes to bring six to eight artists with him on thejourney. they won't actually land on the moon's surface, but will instead travel around it, like nasa's apollo 8 mission of 1968. and this is the craft that might take them there. the bfr. which spacex says stands for big falcon rocket. it isn't built yet and there will need to be several test flights first. this is vigorous. —— this is dangerous.

this is no walk in the park here. you know, this will require a lot of training. mr maezawa has paid an undisclosed amount to be the first on the trip. the total project will cost around $5 billion, mr musk said. but he might get there, one day. dave lee, bbc news. space, the emmys, hollywood, they are space, the emmys, hollywood, they a re often space, the emmys, hollywood, they are often linked. sophie is back, as promised. the brits did well in the emmys, we got a few awards including the crown, which is great. really great, it is lovely to see claire foy winning and it is a hit for netflix. it has done well and ignited the imagination and interesting to see the next series with the next generation and how that gets on. many would argue the crown is an example of the

revolution in television and the disruptor netflix was many years ago but it is an example of how tv has invested heavily in original content. invested heavily in original co nte nt. we invested heavily in original content. we are asking viewers about what they are watching and if they are watching tv more because of the golden age of tv. says, we discovered the crown recently and spent the week watching it. someone else mentioned regional copyright laws and mrs and issue come up what you can watch in one country, you cannot watching another. this says, i havejust started the purge on amazon. so many services. you are writing about the fact you are managing to reduce your monthly subscription fees with various providers because you tell them you canjust providers because you tell them you can just stream anything and that is the difference. people have changed the difference. people have changed the way they watch television. with something like the bodyguard, people we re something like the bodyguard, people were watching it live. the bbc

series. sometimes people will get round the tv because they want to watch it at the same time. box sets are different. they are and people are happy with streaming things generally and do not worry about what is on tv. as long as they are still watching goes live! that is the main thing. some people have said they have been finding the old hits, twin peaks, one person got in touch. iam one person got in touch. i am watching succession which is great. a business show. it is great. if you haven't seen it already, watch it. thanks so much for your comments and your company, we're back tomorrow. see you then, have a great day, goodbye. goodbye. with the remnants of ex—hurricane

helene at our shores today, it is quite a windy day across england and wales in particular. this area of low pressure is the remnants of helene. the isobars close together so breezy conditions. lots of cloud around england and wales towards scotla nd around england and wales towards scotland with rain here but that clears away towards the north and east. staying windy into the afternoon. let's take a closer look at the wind for the evening rush hour. i have put the roads on here as well. gusts of wind about 40 to 50 mph, especially around western areas. showers into western areas as well. further north, you notice these black winged arrows, not quite as strong. not quite as windy across scotla nd as strong. not quite as windy across scotland and northern ireland throughout this afternoon. still gusty conditions and showers moving their wave in. temperatures, 17, 18

degrees in northern parts feeling warm for central and eastern areas with temperatures in the mid—20s. tonight, a bit of cloud south and east with showers here. clear skies further north and a fresh night compared to last night. temperatures down to 11 or 12 celsius, a warm and muqqy down to 11 or 12 celsius, a warm and muggy night across the south. 0n wednesday, another area of low pressure m oves wednesday, another area of low pressure moves in from the atlantic and look at the white lines, the kosovars. for all of us, a windy day than today —— the isobars. more widespread disruption because of the wind during wednesday. if you have travel plans throughout the day, some disruption across scotland in particular. 70 to 75 mph gusts and even particular. 70 to 75 mph gusts and eve n a cross particular. 70 to 75 mph gusts and even across northern england and north wales and northern ireland, 50-60 north wales and northern ireland, 50—60 mph so an impact throughout the day. heavy rain moving through northern ireland into scotland.

eventually clearing away. rain moving south and east across england and wales picking up into showers by the afternoon. a cooler day despite sunny spells as temperatures get up to 14, 16 degrees in the north and 22 in the south east. thursday remains quite blustery with heavy rain. a bit of rain on friday but better chance of some sunny spells. temperatures, down by the end of the week. more like the average for the time of year. that is it for me, goodbye. hello, it's nine o'clock. i'm victoria derbyshire, welcome to the programme. details of whether a russian businessman who died in mysterious circumstances while out jogging near his mansion in surrey had links with british spies can be kept secret, this programme has learned. an inquest will rule this week on the death — with speculation still rife about what killed him nearly six years ago. i believe that alexandar perepilichnyy was murdered in november of 2012. based on, what evidence do you have for that? well, based on the fact

that he was a cooperating witness against russian organised crime. that he was on a hit list, that he went and took out an enormous insurance policy on his life in case he did get killed. we'll bring you more on that mysterious case at 9:15. british actors did brilliantly at the emmy awards in los angeles last night — claire foy, matthew rhys and thandie newton were all named as winners. i had the most extraordinary two and a half years of my life —