this is the business briefing. i'm sally bundock. tit for tat: chinas response to the trump administration's latest tariffs was swift, retailiating with tariffs of its own and escalating the trade war between the world's two biggest economies. and we hear what the chinese premier li keqiang had to say about this and other issues as he opened the world economic forum in tianjin and on the markets: some relief in the global markets that the latest round of us tariffs against china is less damaging than initially feared. some tech products are excluded and the staged introduction has left the door open to a deal,

with presidents trump and xi expected to meet at the 620 in november. let's take a closer look at what the us stands to gain and lose: there's a revenue benefit. the treasury department says there has been a $5.1; billionjump in customs and duties collected so far this fiscal year. but some of that is simply due to more goods entering the us. a 10% tariff on $200 billion of chinese imports should theoretically raise $20 billion forfederal coffers but the risk is that the flow of goods will slow. 0n the downside, there'll be inflationary pressures though consumers will only feel the full impact injanuary — well after november's mid—term elections — when the price of chinese imports is due to rise 25%. there are other costs for the trump administration. injuly it unveiled $12 billion

in aid for american farmers hit by chinese retaliatory measures. and there are long—term risks too for american companies. chinese imports from the us have grown by nearly 500 percent over the past five years. will that trend now reverse? rod hunter, former us national security adviser, now trade partner, baker mckenzie, joins me now. see you have a sort of inside track on how this works. gives your take on how this works. gives your take on the last 2a hours. we've seen donald trump what he promised, new ta riffs donald trump what he promised, new tariffs on $200 billion worth of imports into the us, china has retaliated but many are looking at this and saying, this is not as bad as it could have been. it's quite low level. no one really has an

inside track on the thinking of president trump on trade that he's been quite clear that the last 30 yea rs been quite clear that the last 30 years that he thinks tariffs are a good thing and is concerned about trade deficits. this decision, as of yesterday, comes off the heels of two other sets of tariffs imposed on chinese imports and the effect of lot of these tariffs will be phased in over time lot of these tariffs will be phased in overtime and lot of these tariffs will be phased in over time and many manufacturers, us manufacturers have been essentially absorbing the cost initially but eventually, there will be impacts on consumer prices as well is worse for workers. as you say, it is phased in over time. we have the us mid—term elections in the middle of november and president trump and president xi are possibly meeting and talking on the sidelines. although it sounds quite tit—for—tat, we are slapping tariffs

on you, returning with this, they may do a deal eventually. the president always talks about his book, the art of the deal, and his ability to negotiate. the president has mentioned imposing a number of tariffs, not just china has mentioned imposing a number of tariffs, notjust china but also your and other trading partners. the success your and other trading partners. the success of negotiations have been quite limited so far. several attem pts quite limited so far. several attempts with china were u nsuccessful. attempts with china were unsuccessful. the president rejected both of his secretary of commerce's attem pts both of his secretary of commerce's attempts and ultimately, if there is going to be a negotiated settlement, it will have to be at the president to president level as you mentioned in his note yesterday. what do you make of his tactics, as it were, when it comes to trade? this whole

point is, i don't try to make it a more level playing field. going about it my way. what you make it this way doing things? there will be results. the president, while he's been consistent, has been consistent. the administration set out the criticism report. in the stages since, we have ended up with escalation. it's not clear what the offramp is. we shall keep an eye on the offramp. thank you so much coming in. it's been great to your analysis. this goes straight to china. let's go to china now where the chinese premier li keqiang has just opened the world economic forum in tianjin.

and of course the trade dispute was first and foremost on everybody‘s mind. mr li said that multi—lateralism should be upheld, and that unilateral trade actions will not solve any problems. let's get more on this now from our asia business correspondent karishma vaswani who is at the forum in tianjin.... let's get more on this now from our asia business correspondent karishma vaswani who is at the forum in tianjin. well, sally, he, like many chinese officials do when they go to these sorts of global forums, was trying to champion globalisation. that's something i've heard both the chinese premier and the president say. you heard it as well, it's the fa ct say. you heard it as well, it's the fact that china believes in globalisation. while not directly mentioning the us — china trade tensions that would seem ratcheted up tensions that would seem ratcheted up recently, he did say that the current economic environment has been challenging for china but that this country has the ability to cope

with the challenges. interestingly, he also talked about how the international system by which trade has been governed for the last few decades, multilateralism, those rules must be upheld because not doing so won't help anybody. this obviously is criticism or consent. what many in asia see the trump administration doing and that is basically dismantling the international multilateral trade system that has been so successful certainly in terms of asian economies. that was one of the key m essa 9 es we economies. that was one of the key messages we heard from the chinese people today. foreign firms will be given equal access as chinese companies. that's always been a major bone of contention between the us and china. american business

community representatives have also told is that the critics will say we have heard this from china before and more evidence needs to be seen before we believe this. thank you so much. karishma, at the world economic forum. let's take a look at some other business stories. danske bank is due to to present the findings of its long awaited investigation into the bank's handling of russian and ex—soviet money through its estonian branch. it has been called one of the biggest money—laundering scandals in europe. the authorities in estonia have launched their own inquiry. the uk prime minister will announce 2 billion pounds — that's $2.6 billion — of new funding to build affordable and social housing in england. housing associations, local authorities and other organisations will be able to bid for the money to spend on projects beginning after 2021. but the opposition labour party said the announcement fell "far short" of what was needed.

australian airline qantas has said it is considering putting gyms on the planes making its planned non—stop flights between london and sydney. a bar, creche, sleeping areas and berths are also being considered for the 20—hour flight. the airline wants to launch the service from 2022, and has asked boeing and airbus to suggest planes for the route. it's still a heck of a long time to be on it's still a heck of a long time to beona it's still a heck of a long time to be on a plane, 20 hours, despite all the bells and whistles. we will let you know how it unfolds in the future. hyperinflation has ravaged venezuela's economy, and its old bolivar notes are worth next to nothing. but for some enterprising artists, these useless notes are an economic opportunity. that's it for the business briefing this hour, but before we go, here are the markets. first, some news from london. a man has died after being stabbed in london. he was found with serious injuries late last night, but hasn't yet been

formally identified. it comes as the mayor of london, sadiq khan, is to announce a new approach to tackle violent crime. keith doyle has more. a gang in london caught on cctv about to stab a man to death. the latest figures for england and wales showed there were 1.3 million violent incidents last year. in london, there have been 100 murders so london, there have been 100 murders so far in 2018. a new approach to combating violent crime is to tackle the causes. this centre in south london provides support to young people already caught up or likely to be caught up in a cycle of violence. young people that have been stabbed, young people that have low—level fractures from puncturing the wall. when we actually need them at that point. dawn's own family was helped by all—round support. she is

110w helped by all—round support. she is now helping one teenager was returned from violence after giving a sense of worth. slowly, he came to understand it wasn't just a sense of worth. slowly, he came to understand it wasn'tjust cooking that he had to turn up on time, that he had to be, if he turned up late, he had to be, if he turned up late, he was letting me down. the basis of this approach to tackling violent crime is accepting that violence is not inevitable. it is preventable and it can be killed rather than just punished. this approach is ready in place in glasgow and has helped cut murders by many numbers. now it is to be trialled in london. more on that story at the top of the hourin more on that story at the top of the hour in breakfast with dan and louise. they will have all the days business and sport. this is the briefing from bbc news. the latest headlines:

smiles and handshakes in pyongyang — the leaders of the two koreas sign a joint declaration promising peace. ahead of a meeting of european union leaders in austria, the eu's chief brexit negotiator puts forward new proposals. one of germany's top spy masters is moved from his post after comments he made about far—right extremists. now it's time to look at the stories that are making the headlines in the media across the world. we begin with in south korea. 0ne we begin with in south korea. one of their main dailies. that met with their main dailies. that met with the mail. it is the country's new relationship with the sale. they are saying it is time to quickly deliver on our saying it is time to quickly deliver on oui’ agreement. saying it is time to quickly deliver on our agreement. the front page of the hong kong economicjournal looks at chinaposmac retaliation to the us trade tariffs, but says both sides haven't gone as far as they could. let's look at the financial times —

and tesla's being investigated by the us department ofjustice after boss elon musk‘s tweet about taking the company private. you'll remember the plans were abandoned, but not before shares soared on the announcement. the guardian in the uk looks at a walk out by mcdonald's workers in the us. "we're not on the menu", say some of the protesters, as they claim sexual harassment in their industry is rampant. and mcdonald's making headlines in the philippine star too. two filipino americans whose prank on the company went viral will star in their marketing campaigns. the friends hung a poster of themselves on the walls of one restaurant in texas to make a statement about diversity — it went unnoticed for months. with me is dr stephanie hare ,who's an independent political analyst. to talk us through some of these stories. we thought it would be very