this is the business briefing. i'm sally bundock. globalisation's new champion. president xi promises a more open china for foreign firms ahead of a 620 showdown with president trump. plus beefing up the economy. can farmers help dig 620 host argentina out of its economic crisis? and on the markets, us stocks surge, enjoying their best day in eight months as federal reserve chief jerome powell signals the cycle of interest rate rises could be coming to an end. as you can see, the gains orjapan, but mixed elsewhere. —— the gains forjapan, but mixed elsewhere. let's return to the argentine

capital, buenos aires, where leaders of the world's 20 top economies are gathering for this weekend's g20 summit. for global business, it's all about two of them, us president donald trump and chinese president xijinping, who are due to meet on the sidelines to try and resolve their destructive trade war. this year, the us has slapped import taxes or tariffs on almost half the products it buys from china, goods worth $253 billion a year. and president trump has threatened to put tariffs on everything else if he doesn't get a deal he likes this weekend. china has responded with tariffs of its own on the vast majority of us goods. it imports worth $110 billion a year. notice it's a much smaller figure, the us runs a huge trade deficit with china, in other words it sells a lot less than it buys to the tune of $375 billion a year. president trump wants that cut sharply. he and others also accuse china

of trading unfairly in other ways, especially by copying foreign technology. china is gradually opening up more to foreign companies, foreign direct investment was up more than 4% in the first half of this year, led by the tech sector. president xi is on a state visit to spain, and on wednesday he used a speech to the senate to promise to speed up the process. translation: henceforth, china's doors to the outside world will not be closed and. but rather they will be closed and. but rather they will be opened even wider. we will greatly relaxed market access. improve the investment environment and strengthen intellectual property protection. the chinese domestic community market is getting bigger and bigger. —— consumer. we would like the needs of each level of

society to be met, so we will expand oui’ society to be met, so we will expand our imports. china will import $10 billion of goods over the next five yea rs. billion of goods over the next five years. that means we will import on average $2 trillion worth of goods per year. isabella weber lectures in economics at goldsmiths college in london. president xi it seems is putting out an olive branch to president trump and the white house ahead of their meeting. certainly. china is anxious to reach an agreement. it's clear at the same time trump has been increasing the rhetoric. the best we can hope for is really a broadbrush agreement that would lay the ground for further negotiations, agreement that would lay the ground forfurther negotiations, but agreement that would lay the ground for further negotiations, but given the outcome of the apec summit recently, which was really an historic breakdown in communication, it's not impossible to imagine such a general agreement would not be reached. we were covering that

asia—pacific economic operation summit, the apec summit, and there we re summit, the apec summit, and there were high hopes that summit and asean might cause there to be more conciliatory tones between the us and china, but it seems to go in the opposite direction. of course, earlier this week, president trump are saying he's more than likely going to increase tariffs in january. going to increase tariffs in january. not only has president trump said he would increase tariffs, he is specifically said he would increase tariffs that would affect apple by 10—25%, which subsequently has seen the stocks of apple crumbling. this is a good example to understand better how the trade war is affecting the global economy, the structures of the global business systems. in some sense, the structure of the global business system is what you read on your iphone, designed in california and assembled in china. in many ways, the technology and the know—how is coming from the us but

the components have to be imported from the us and assembled in china. if we imagine an increase in tariffs, as mrtrump, president trump, has announced, that would affect products such as the iphone, potentially twice, once when components are being imported, in case china retaliates, but also on the side of exports. going forward, how can we predict how these economies will be in fact it, the us, also china. i mentioned the head of the federal reserve, jerome powell, was talking yesterday in new york and he was scaling back perhaps the thinking of interest rate rises in the us next year, which would imply the thinking is changing about the economic outlook for the us. it's extremely difficult to predict a. what we're seeing our already is radical uncertainty in its purist form. the trade war is creating the sense of it being hard to see what's

next. what is clear, given the structure of the global business system and given how intertwined to be american and chinese economy are, it would affect them both deeply —— the american. it's notjust about trade but about finding a new global governance structure of this arrangement. isabella weber, thank you for giving us your analysis. we will keep you across the g20 summit. let's stay with argentina, because the host of this weekend's g20 summit has been battling a deep economic crisis. it's hoping rising global demand for its agricultural products could be the key to recovery. the bbc‘s daniel gallas reports on argentina's plans to beef up its economy. this is possibly the fastest growing population in argentina. cattle. for decades, argentina was a powerhouse

in beef and milk production. then, 12 years ago, the government banned beef exports in an attempt to keep down prices for local consumers. results were catastrophic. 12 million animals were lost, and argentina gave up its top spot as a beef exporter. three years ago, the ban was lifted and since then, argentina has tripled its exports. livestock production is one of the sectors that's been helping argentina make a comeback on the international stage, and that's the image the government is trying to project during the g20 summit. international investors certainly think that's the way to go, but if you talk to local businesses, they have a different message for the government. this local travel range of saw many farms closed down in the last few years only to reopen now. he says the super is still face the economic conditions in. today we

can't take out loans with interest rates of about 60% of. we have to finance our production with our own capital. those who end up going to the banks end up losing money. and then there's a new tax on exports. the president says the country needs cattle ranchers to help pay for the country's financial problems. despite all challenges, analysts say this is a good time for argentinian beef to hit international markets. the market for beef is growing rapidly, particularly in asia. currently china's consumption of beef per capita, is very low, so their growth is going to drive the growth of all beef markets. agriculture once helped save argentina from the worst crisis in its history. the hope now is farmers like you go will be the main driver of beef onto a world stage. daniel

gallas, bbc news, argentina. now let's brief you on some other business stories. senior executives from carmakers renault, nissan and mitsubishi are meeting in amsterdam to discuss the future of their 19—year—old alliance. it has been thrown into doubt by the arrest of chairman carlos ghosn over financial misconduct allegations. executives at nissan have reportedly become concerned that the company is controlled by renault, a far smaller company by sales, which has the french government as its largest shareholder. kellogg's is to put traffic light labelling on most of its cereal packs sold in the uk from january, having previously refused to do so. the uk government's voluntary scheme, introduced in 2013, indicates how much salt, sugar or fat foods contain. kellogg's said it had made the change after having listened to consumers, government and retailers. what is trending in business? more on the us war. cnbc has done a survey of some 800 companies to find

out what they think of the impact —— us—china trade war. us manufacturers said trump tariffs will bring higher prices, not morejobs. bloomberg is talking about not counting on the third to save stocks again. that's the headline. that's the fed chief jerome powell's comment is playing down further rate rises in the u, new year, which could mean an economic downturn on the horizon —— the new year. not good for markets. and on business insider, the us federal trade commission will investigate whether video games are getting kids hooked on gambling through so—called micro transactions that can unlock in—game bonuses. that is your business briefing. news briefing in a moment.

spain says it is in talks with italy and malta to try and find a port where a spanish fishing vessel carrying 12 migrants can dock. the boat has been stranded in the mediterranean for a week after rescuing the african migrants. kathryn armstrong reports. a difficult conversation over what next for a dozen african migrants rescued at sea. the second captain of the spanish fishing vessel describing the plight of those they came to the aid of last week. those brought aboard the boat were reportedly fleeing from the libyan coastguard, although what actually happened is yet to be verified. translation: the libyans managed to get to the boat. they took the people who were on board then they punctured the rubber dinghy to destroy it and then they left, leaving the people in the

water while the fishermen were calling them, warning them that there were people in the water, to stop and rescue them, and they didn't do it. spain initially asked libya to take charge of the migrants, as it was the nearest country to the spot where they were rescued. however, the un refugee agency has repeatedly said that the country is not safe for migrants. now the spanish government is trying to negotiate with malta and italy, but both countries have reportedly refused to get involved so far. it is the latest in a series of stand—offs involving asylum seekers. sincejune, several rescue vessels have been left stranded, as eu nations debate who should be responsible for those fleeing their homelands. meanwhile, human rights groups are calling for the boat to be allowed dock as soon as possible. conditions are cramped, and the vessel had to move away from libya, towards the italian island of lampedusa, because of worsening weather. but, while the negotiations continue, it is unclear how much longer it will take to find a port willing to accept these migrants. kathryn armstrong, bbc news. this is the briefing from bbc news.

the latest headlines: a new climate report warns that heatwaves and increasingly hot weather could overwhelm health services around the world. homes are evacuated in north—eastern australia as fire risk levels are raised to catastrophic for the first time in history. the uk's security minister is expected to say that a no—deal brexit would seriously impact european counter—terrorism efforts. now it's time to look at the stories that are making the headlines in the media across the world. we begin with the telegraph which leads with the bank of england's dire predictions for a no deal, saying the uk economy would shrink by 8% in just one year and be tipped into a recession. however, jacob rees—mogg, the tory euro—sceptic, has labelled the warning project hysteria.

meanwhile, the independent says labour's shadow chancellor john mcdonnell gave the strongest signal yet that labour would swing behind a people's vote saying if uk prime minister theresa may's plans are now blocked by the commons as expected, a fresh referendum now looks inevitable. "dont putin's lies' is the response "dont believe putin's lies' is the response from ukrainian president petro poroshenko who has urged nato to send ships to the sea of azov following a naval confrontation with russia off crimea. he told germany's bild newspaper he hoped the ships could be relocated to assist ukraine and provide security. 0n the front of the arab news, us secretary of state mike pompeosaid saudi arabia is a powerful force for stability in the middle east and warned against any attempts to harm us

relations with the kingdom. and finally, on the vox news website, a passenger who was flying from singapore to japan on the budget airline scoot asked for a cup of water while his flight was delayed. the flight attendant then told him he would have to buy a bottle of water. the passenger declined to pay asking for tap water instead leading to the an attendant placing a cup of ice in front of him, telling him to wait for it to melt. it was quite a long flight so i imagine they would melt. with me is 0liver cornock, who's editor—in—chief of the 0xford business group.