this is the business briefing. i'm sally bundock: bumpy road ahead for the global car industry as it gathers in paris for the motor show — we talk to the bosses of the world's biggest car makers to get their take on tarrifs and brexit. and in a highly unusual move, the indian government steps in and rescues an infrastructure lender struggling under a $13 billion dept pile. we'll be live from delhi. and on the markets: hong kong has reopened. it was closed for the long weekend. you can see it has hit the bugfferrs whereas japan is up one third of a percent and we will look at the reasons why -- hit the and we will look at the reasons why —— hit the buffers. it is the time of year when car industry is executive is are gathered in the french capital for

the 2018 paris motor show. but they're doing so at a time when us tariffs and brexit threaten to slam the brakes on the industry. the united states is the number one destination for eu—built cars, with exports worth more than $41; billion in 2017. despite a truce between donald trump and the eu's jean—claude juncker injuly, the us president reiterated his threat last month to hit european vehicle exports with a 25% tax. global manufacturers have warned that tariffs on cars and car parts would raise the price of imported vehicles by up to $6,000 per car. there have been warnings too from a clutch of carmakers about the damaging impact of a no—deal brexit on the sector. toyota says output at its plant at burnaston in the english midlands — which produced almost 150,000 cars last year — would be temporarily halted. it follows similar warnings

of stockpiling, extra costs or plant closures from jaguar land rover, bmw and honda. our business correspondent theo leggett is at the paris auto show, where he met bmw's chief executive harald krueger and asked him how the car maker is preparing for brexit. bmw is about flexibility, that is why we plan to shut down, and we have more flexibility left, definitely, and we have more than one location, it is notjust oxford, it is also in the netherlands, so we could move production around as well. if you were to move some production to the netherlands, what would that mean for cally? cally is still utilised, but the trouble could be more in the value creation and the process chain, because there area and the process chain, because there are a lot of parts going in the tunnel, there are 100 lorries going

in one direction, one going in the other with finnish products, and if there is a disturbance with the process chain, that might hit us, and that's why we are preparing on time for the right things —— finished. . we are at a time of great trade tensions. you export ca i’s great trade tensions. you export cars to the united states. you have ca i’s cars to the united states. you have cars that you export to china. you are being caught out by tariffs and the threat of them in different ways and it is already affecting your profit. how worried are you about that? our business model clearly relies on free trade across the globe and our biggest plant in the world showed that, 70% of production is being exported and is creating jobs in south carolina, it is creating wealth, and if this is at risk it is not good for business. we are ata risk it is not good for business. we are at a time of great change in the car industry, almost a technological revolution, electrification and automation. as a business, surely you want to invest in these new technologies. the last thing you

need is these other headaches. technologies. the last thing you need is these other headachesm technologies. the last thing you need is these other headaches. it is the most challenging time since the last 20 or 30 years because, on the one side we are investing heavily in new technology, and bmw is always about technology leadership, so we are investing in electrification, we will have five models on the market quite soon. we are investing in autonomous driving. our next great car will be first generation which has level three and then level for as technology on—board. we investing into emissions and feature drivetrains and powertrains, so we are doing this all at the same time and still coping with the volatility of the business. but we are clearly leading the game in these things and we believe in a clear future. leading the game in these things and we believe in a clearfuture. what it shows in the other companies moving in, that the automotive industry is still something which is an exciting business. so that is the ceo of bmw, harold kruger, speaking with theo leggett at the paris motor show. arnab das, global market strategist at invesco asset management,

joins me now. good morning. morning. you are listening to that closely. that is a good illustration of a boss with a lot on his mind, brexit, the trade war between the us and china, or the ta riffs war between the us and china, or the tariffs on cars going to the us, and then the future, electrification, all the other issues they have to consider. yes, it is a complicated time certainly for the car industry as we have heard and in general as well, so what i would say is starting with the global trade tensions, we have had some progress, right, the us, mexico and canada have agreed, it has to be ratified in congress, but at least it has been progress, and i think this is telling. president trump himself might bea telling. president trump himself might be a trueblue protectionist, but the us probably is not and there's a lot of different crosscu rre nts. there's a lot of different crosscurrents. so oui’ there's a lot of different crosscurrents. so our take on this

is that these tensions will continue but they will probably not lead to a full—blown trade war, and ultimately there will be concessions from a number of countries that have large surpluses with the us, because they need the us market. brexit is a different and more complicated matter, clearly, the risk of a disruption, discontinuity as the ceo of bmw was just saying, that's a very serious problem, certainly for the car industry and i would suggest for the entire, you know, european, and particularly, obviously, the british economy. for the uk economy it is really difficult, isn't it, because you can understand why, you know, global car ceos, international car bosses will rethink where their factories are in europe, if the brexit deal is a hard brexit, or no deal, that kind of scenario. yes, so there are several, like many things, operating on several different levels and there are several

different issues. if we have an "hard brexit" with no transition, a crash out brexit, let's say, that's one very serious kettle of fish to deal with, because it doesn't allow time for any adaptation of the supply chain, the famous bumpers crossing the borders repeatedly or other parts. i think if we have a transition, that's a different matter, because that will allow time for adaptation. if you look around the world, there are plenty of supply chains that don't rely on single market, or a customs union, right, in asia or indeed north america where there is just a agreement. so i think one crucial thing isjust to agreement. so i think one crucial thing is just to avoid the so—called no—deal brexit even if we are going to have and excerpts on the customs union and the single market, ultimately, if we have more time to adapt to that, it will soften the blow. and it will allow for the relocation of these supply chains. thank you for your time this

morning. really interesting to have your take on that. and of course we have more from the paris motor show from theo who is there for us this week. now let's brief you on some other business stories: a budget airline that began offering long—haul flights from uk airports earlier this year, including stansted to the us, has collapsed. primera air ceased all operations at midnight on monday, uk time, after 1a years of operations. flights to washington and new york due to leave stansted on monday night were grounded and passengers have been told not to go to the airport on tuesday. the new owners of house of fraser has sacked its senior management just weeks after it bought the uk department store chain. sports direct paid $117 millon for house of fraser's 58 uk stores in august. the move followed "calls for an investigation" into the retailer's collapse, a statement added. those departing the chain will include chief executive alex williamson. over to india, where the government has stepped in to rescue an infrastructure development

and finance firm, which started to default on a $13 billion debt pile. our india business reporter devina gupta joins us now from delhi. just tell us more about the situation, who has been bailed out by the indian government? so it is a 30—year—old company which has been known for lending to projects of highways, roadways, waterways, and had shareholding from a japanese investment firm and also from abu dhabi investment firm, and tens of thousands of indian investors have been putting money through mutual funds, and they are after —— and after it became almost at a debt of about 12.8 billion dollars the government yesterday stepped in to ensure there is no spread of this financial contagion. here is how the newspapers are covering it right now. they say that the company board has been sacked by the government and air has been a probe initiated

into what they call financial irregularities, and there is a knack is asian that the top management swindled off most of the money, and that's where an investigation will be headed. for now the government has taken control of this company, six directors have been appointed from different backgrounds, including a banker, to ensure the turnaround of this firm. all right, devina. thank you so much. interesting story to keep a close eye on. let's show you the financial markets really briefly. so, hong kong falling significantly. it was closed on monday but closed 1.5% today in reaction to signs of wea kness today in reaction to signs of weakness in the chinese manufacturing sector, and that is the close in the us, you cannot see the close in the us, you cannot see the asian markets at the moment but the asian markets at the moment but the chinese financial markets are closed for the week for a national holiday. japan, when we last looked, up holiday. japan, when we last looked, upjust one holiday. japan, when we last looked, up just one third of a present and thatis up just one third of a present and that is the close on wall street. the news briefing is coming up in just a moment. so, our review of the global media

ina so, our review of the global media in a moment, but first of all: millions of small plastic pellets, known as nurdles, have been discovered on a beach near portsmouth. experts warn they can release toxins with potentially devastating effects. they're called nurdles. tiny plastic pellets that have washed up in their thousands on hayling island. so many, in fact, that volunteers here have collected more than 20 sacks full of them. millions of them, and we couldn't physically sit here and pick them all up... despite that, one volunteer, bianca carr, says the nurdles keep appearing. to give you an idea ofjust how bad the problem is here, take a look at this jar. in one small section of beach, two metres by two metres, one volunteer spent two hours collecting all these, and found a total of about 1000 of these nurdles. no—one knows where these tiny white

beads have come from. the vast clusters found on hampshire's shoreline coincided with a bbc documentary on plastic pollution. it showed this indonesian river choking in plastic. oh, look at that, yeah, the size of that.... while on howe island, off australia, came these disturbing images of what birds are ingesting. 0h! look at that. stomach full of plastic. one, two, three, four, five... 16 pieces of plastic. oh, look at that. yeah. six years ago, this wasn't snow in the pacific, but more nurdles, washed up in a typhoon. volunteers everywhere are cleaning up a worldwide deluge of plastic, but from hong kong... ..to hampshire, ourseas, rivers and oceans remain in a fragile struggle

with human activity. duncan kennedy, bbc news, on hayling island. this is the briefing from bbc news. the latest headlines: there's growing anger among survivors of indonesia's earthquake and tsunami as they face a fourth day with no water, no power and little sign of help. us supreme court nominee brett kavanaugh has been accused of lying under oath about heavy drinking. president trump says he wants a comprehensive fbi investigation. now it's time to look at the stories that are making the headlines in the media across the world. we begin with the sun and former uk foreign secretary borisjohnson who has reportedly told senior members of the conservative party that he would delay brexit by six months if he were prime minister. the new yorker magazine has an article that looks at the current

confusion surrounding the fbi's renewed investigation of supreme court hopeful brett kavanaugh. the guardian says the us, canada and mexico have reached a deal to revamp the north american free trade agreement ending months of bitter dispute between the world's largest economy and its closest neighbours. us president donald trump hailed the agreement as a "wonderful new trade deal". the telegraph buisness pages say according to entrepreneurs, the uk government's plans to introduce a unilateral "digital services tax" on us technology companies threaten to smother investment in start—ups and damage innovation. and finally, the front a le figaro carries this poignant photo of french music legend and national treasure charles aznavour who has died aged 94. so let's begin.

with me is priya lakhani obe who's founder and ceo of century tech — a uk based education technology platform. and award winner, congratulations!” was in new york. it is interesting because one of the stories we are about to cover, i constantly saw lots of adverts. we need to top borisjohnson lots of adverts. we need to top boris johnson first. on lots of adverts. we need to top borisjohnson first. on the lots of adverts. we need to top boris johnson first. on the front page of many newspapers today... rolling through a field. the conservative party conference is under way and we are all waiting to the prime minister's speech later this week. we have ready discussed