hello, this is your business briefing with me sally bundock. china does ‘s accused of backtracking on commitments in trade talks in washington does make in washington threatens to raise ta riffs washington threatens to raise tariffs on chinese goods on friday. console wars, microsoft ditches the discs as it launches a cheaper digital version of its xbox one as. it tries to take on sony —— one s as it tries to take on sony. the trump administration threatens those new tariffs, forjapan, it's the first trading day back following a six day holiday.

so, let's get stuck in. robert lighthizer has accused china of backtracking on commitments in the ongoing trade talks, he is also confirmed president trump is my threat to more than double tariffs on more than $200 billion worth of chinese good on friday —— goods. so as you just saw, markets in asia are down quite a bit and it is mainly on this news of renewed tensions between china and the united states. michelle has more from new york. america's trade negotiator, robert lighthizer was apparently angered by the chinese government's attempts to reopen aspects of the deal that the us considered settled. this especially relates to the forced tra nsfer of especially relates to the forced transfer of technology from american companies operating in china. now,

mrlight companies operating in china. now, mr light either apparently shared his frustrations with his boss, donald trump, who then escalated tensions. then in a post on twitter, the president said thoughts were moving too slowly under tariffs on $200 billion worth of chinese goods would increase from 10% to 25% by the end of the week. some suspect this is an attempt by mr trump to pressure the chinese side to resolve the meaning issues —— remaining issues. it's still not without risk, if he follows through, tariffs would hit us customers and some of his base. still, the president was back to tweeting on monday, this time railing against the size of america's trade deficit. when the opening bell rang here in the united states, the dow jones opening bell rang here in the united states, the dowjones industrial average fell more than a50 point, remarkably, it later recovered most of the losses. -- points. if you look at the way the stock market is reacting, it's not clear if they

think the president will follow through with his throat. however, the abrupt kind in stock prices around the world suggest that the possibility of a trade war between the world's two largest economy still has the ability to roil the market. that's michelle from our tea m market. that's michelle from our team in new york. let's go live to beijing, stephen mcdonell is there following the developments from the outside of the world. stephen, as ever, we haven't really heard anything, have we, from china in terms of their reaction to these new threats? is that true? no, not yet. thatin threats? is that true? no, not yet. that in 2.5 hours there will be the regular press conference from the foreign ministry and we will be asking what the chinese government has to say about these allegations from their senior members of the trump administration that china has been backtracking on earlier commitments —— the senior members. we've been operating in a bit of a void at the moment, the trump administration has been saying there has been back tracking, but there is

no detailed for us to ask the chinese side "you said you would do this, but we are hearing this." we have to take it at face value at the moment, but the early signs from china seem that it could be like that. the state run media in china has virtually not reported this, to the extent that there are people in china who have no idea why there is all this pressure on the chinese stock market. there's all these comments online like, what's going on, for the sake of calming the markets the order has gone to china's state run media not to report heavily on this threat from donald trump to increase those ta riffs donald trump to increase those tariffs on friday. and again, we'll be asking for more comments from the chinese side about that. it does seem, though, to be a genuine threat, though, ithink, at this stage. it's interesting you say it

is not reported in china yet we looked at the markets in that part of the world and in hong kong where you are, down quite significantly today. of course, chinese trade representatives are heading to washington now, they are still talking towards the end of the week, aren't they? yes, that's right. the chinese government has said that that team is still going to washington, they are still hoping for some sort of a breakthrough i guess, on thursday, to stop this tariff increase from happening, but if it doesn't happen, we'll see yet another drop in the markets, because even though some of these — investors don't know what investors are going on here, there are some tapped into the international media, i guess they really new york homes oi’ i guess they really new york homes or watch the bbc, they know what's going on and i guess they are driving investment in the stock market in china —— new york times. stated that —— thank you stephen, for any more news and developments we will make sure you are up—to—date. today sees the global knowledge of the next generation

xbox gaming console which microsoft is aiming at digital natives, apparently, teenagers who have grown up apparently, teenagers who have grown up without discs or cartridges. so the x box temp one —— xbox is will come without a blu—ray drive, it will be cheaper than previous xbox models and will cost $2a9 us. the new digital xbox is expected to have minecraft, forts, arise in three, c of thieves pre—installed on the hard drive, it comes as microsoft pushes its xbox pass to $10 a month, offering access to more than 100 games. it also comes at a time in the market that is increasingly shifting toward streaming and downloadable games. microsoft's earnings for the first three months of this year so gaming revenues up by% compared to the previous year, while wa lone software and services went up by some 12% —— gaming

reve nu es went up by some 12% —— gaming revenues up went up by some 12% —— gaming revenues up 5%. good morning kasper. how much of a game changer is this? it's an illusionary step for microsoft, but we don't expect it to bea microsoft, but we don't expect it to be a massive game changer in the market. what this does for microsoft is its, there is a two benefit to this —— there are two benefits to this, it cuts the cost delay, and it allows for a higher margin products, 01’ allows for a higher margin products, ora allows for a higher margin products, or a lower price point entry, which is what they have done with the new version. the other side of this is it- version. the other side of this is it—it version. the other side of this is it — it cuts out the share of reve nu es it — it cuts out the share of revenues which the physical retailers would either take from each game sale. with the digital addition, every game is purchased from microsoft's online store, this allows them to control the entire retail share, which means more money for the game publishers also. from the point of view of microsoft, there are lots of benefit from this

change, what are the benefits to the user, will there be a big uptake, do you think? one shouldn't discount the impact that a lower price point can have on consumer demand, but ultimately, as you said, this is essentially the same console which was released about two years ago, the original xbox 1s and there is another generation expected of flagship console from sony around the corner. if you change your xbox is the corner. if you change your xbox 1s to this new version, you can't use your discs in this new console, can you? this is certainly an issue and people won't be able to put their games across, but this underlines another part of the appeal of moving to an all—digital system. there is a big resale market of secondhand games generally, and this is an area in the value chain we re this is an area in the value chain were console manufacturers don't extra ct a ny were console manufacturers don't extract any kind of revenue ——

where. do you think has the edge? sony, microsoft, nintendo, dare i say? difficult to say, google and amazon are also entering the fray, they have different competitive advantages. sony has the best pipeline of original and exclusive content, microsoft is experienced in cloud platforms and with naming, which should give it an edge when it comes to streaming gaming services, google is probably thought to have the best engineers and technicians. for those really into gaming, what is the most important thing to them? high—quality content, probably. i functionality is important, but good, exclusive games are a high driver and that is very reason why microsoft has underperformed relative to sony in this generation. thank you very much caspar. an interesting issue. that's brief you

on the other business stories. more than 5000 people in the uk were victims of holiday booking fraud last year with their total losses amounting to $9 million. the travel association has said victims lost on average $1800 each, having bought bogus airline tickets, commendation, 01’ bogus airline tickets, commendation, or tourers. —— accommodation. they are or tourers. —— accommodation. they a re often or tourers. —— accommodation. they are often targeting people visiting family and friends in africa or the indian subcontinent. craft heinz has been forced to state nearly three yea rs of results been forced to state nearly three years of results —— kraft. they uncovered serious accounting problems. a decision by turkey's highest electoral body to nullify the estimable municipal elections has sent the zero tumbling. —— lira. president erdogan refused to concede defeat in the city where he built his political career and has been

decided by opponents. that is your business briefing. more business stories on our website. will have a news briefing in a moment, but first, a man arrested on suspicion of abducting and raping three women in the london area is being investigated for other attacks involving no more victims in north—west england. joseph mccann, 3a, was arrested last night in cheshire after 21a year old girls we re cheshire after 21a year old girls were under did. he is being investigated over attacks in cheshire, manchester and lancashire on victims raging between 11 and 71 yea rs on victims raging between 11 and 71 years old. —— two 1a—year—old girls.

they had wanted to speak to him in connection with three rapes in london and hertfordshire. then, this afternoon, detectives confirmed they were also investigating him for a series of violent attacks yesterday in the north west of england. these were, they are a grotesque, an appalling series of offences. they are thankfully exceptionally rare, so it's extremely important that he is in custody, and england is a safer place. mccann is accused of attacking nine people in just eight hours. mccann is accused of attacking nine people injust eight hours. in lancashire, a woman in her 30s was forcibly imprisoned, a teenage girl, and an 11—year—old boy were raped. at about and an 11—year—old boy were raped. atabout1:30pm, a and an 11—year—old boy were raped. at about 1:30pm, a 70—year—old woman was abducted and raped in barry, manchester. in hayward, the 13—year—old boys were abducted and a

13—year—old boys were abducted and a 13—year—old girl was sexually assaulted —— bury. at 630 in congleton, two 1a—year—old girls we re congleton, two 1a—year—old girls were forced into a car that led into a police chase in a collision with another car —— fixed 30p.m.. the suspect led on foot and was eventually found in a tree. he was arrested in the early hours yesterday and is now in the custody of police on the fled on foot. —— fled on foot. this is the briefing from bbc news. the headlines: two reuters journalists jailed in me and mark for reporting on a massacre of rohingya muslims by the military have been freed as part of a political prime ministerial amnesty. prince harry and his wife, meghan,

the duchess of sussex are celebrating the birth of their first child. in surrey said it is an amazing experience and they're still thinking about names. —— prince harry said it was an amazing experience. unrest after the estimable electoral commission ordered to rerun the mayoral election. the opposition coal —— the move has been cold treacherous by the current mayor —— has been cold buttress. what is the global mood today? i'm sure you can guess. this is the daily telegraph with a beaming prince harry, you can see him here on the front cover, as i say, everyone's got this.

all the detail is being speculated upon but it is talking about how baby suffix was born not at home probably but possibly, they are saying, the portland hospital in london which was dashing meghan's hopes of a home birth. 0n london which was dashing meghan's hopes of a home birth. on two other stories, front page of the financial times has the reaction to the tweets from donald trump that he is threatening to increase tariffs on all chinese imports on friday. the times reports on a leaked document reporting the nhs is to begin a global recruitment drive for tens of thousands of foreign nurses because ofa thousands of foreign nurses because of a shortage of staff and an ageing population. the guardian has new research that shows, contrary to what we have been told, that social media does not make teenagers unhappy. and finally, page three of the times, capri, the island of italy, has introduced fines of