good morning, you're with business live, on bbc news. the global markets under pressure as trade tensions between the world ‘s two top economies escalate. that is our headline story. talking tough, america's trade representative accuses china of backtracking on commitments in talks with washington, threatening to ramp up with washington, threatening to ramp up tariffs on chinese goods as soon as friday. we will talk you through what is at stake. also, console wars, microsoft ditches the discs,

launching a cheaper all—digital version of its xbox 15 as it tries to ta ke version of its xbox 15 as it tries to take on sony. financial markets are like this, mixed picture, we will talk you through the winners and losers. it came from the desire for a less gassy beer to drink with indian food and it's since brewed annual sales of up to $350 million, we will get the inside track on cobra beer with its founder. also in the programme, congratulations pouring in for the birth of the royalfamily, pouring in for the birth of the royal family, what would you give as a gift to baby 5ussex? what's the best or worst baby gift you have given or received 7 best or worst baby gift you have given or received? let us know. use the hashtag. a warm welcome with a packed programme, beer, babies, trade

talks, pretty much everything. the spike in trade tensions between the worlds two biggest economies following tweets from donald trump at the weekend. america's top trade negotiator now says china backtracked on commitments it had previously made during trade talks, prompting the u5 president to threaten to more than double tariffs on $200 million of chinese goods on friday. the negotiator told reporters that over the course of the last week or so, we have seen in erosion in commitments by china. that, in our view, erosion in commitments by china. that, in ourview, is erosion in commitments by china. that, in our view, is an acceptable. in response to that, no surprise to hear that stocks fell heavily today during the trading session. fear is escalating of where this trade war is headed next with the two sides appearing to be close to a deal not long ago. life reaction from our bureau in beijing. firstly, in new york, michelle is telling us how we

got here. the chief negotiator in america was apparently angered by the chinese garment‘s attempts to reopen aspects of the deal that the u5 considered settled —— chinese government's attempts. the forced tra nsfer of government's attempts. the forced transfer of technology from american companies operating in china. the negotiator shed his worries with his boss. —— shared his worries. he said talks are moving too slowly and he said tariffs of more than $200 billion would increase by the end of the week. some said this is an attempt to pressure the chinese side to resolve the issues. he thinks he might have room to manoeuvre with a strong jobs market but not without risk. tariffs would hit u5 customers and some of his base if you follows through but the president was back to tweeting on monday this time railing against the size of

america's trade deficit. when the opening bell rang, the dowjones fell more than a50 points although it recovered most of the losses. if you look at the way the stock market is reacting, not clear if they think the president will follow through with his threat. however, the abrupt decline in stock prices around the world suggest that the possibility ofa world suggest that the possibility of a trade war between the world's two largest economies have the ability to scare the market. stephen is in beijing. he hasjust come from the ministry of foreign affairs‘ briefing, what is the reaction from the chinese government if at all at that press conference? we heard from the foreign ministry that china hopes that at this late hour there can be a negotiation

which can avoid that increase in ta riffs which can avoid that increase in tariffs on friday. they are hoping that on thursday, both sides can somehow break through whatever disagreements they have. it‘s interesting. he also said this is a negotiating process, what do you expect? of course we have different points of view. i guess that‘s pushing back a bit on these comments from the trump administration that somehow china has been winding back its position. 0n the back of the news that china‘s senior trade negotiator will still be going to washington. this means he will be there on friday, when that tariff increase happens, if indeed that‘s what comes to pass. at their meeting on thursday, if they can‘t find a way to finally come to some sort of agreement. it sounds like they are trying to play it down in china and

in particular what‘s being said in the media and across china about all of this. it's as if none of this is happening if you look at the state media. 5ome investors are scratching their heads and wondering why their stock market is under siege. that‘s because if they are only reading china‘s state run press or watching state—run television, they‘ve heard virtually nothing about this issue, they have not heard the specifics of this threat from the united states to raise tariffs. those investors are obviously pushing down the stock market or pulling out of this stock and that. they are the ones who somehow have the access to the foreign media, watching the bbc or reading international newspapers and the like. thank you. let's take a look at other business stories starting with more than 5000 people in the uk who are the victims of holiday booking fraud, last year, with their total losses amounting to

nearly $9 million. the travel association abta said victims lost on average $1800 each after buying bogus airline tickets, accommodation or organised tours. 5cammers are particularly targeting people who are visiting family and friends in africa and the indian subcontinent. craft heinz has been forced to restate nearly three years of results after an internal investigation at the warren buffett backed company uncovered serious accounting problems. a decision by turkey‘s highest electoral body to nullify the istanbul municipal elections has said the turkish lira has tumbled. as investor concerns about political instability mounts. the ruling came after a request by the president‘sruling party, his refusal to concede defeat in the city where he built up his political career has been criticised by

opponents. are you a digital native? that is a teenager who has grown up without disks or cartridges. the temp one, or digital edition, will look like the existing one 5 console but with a fundamental different —— the xbox 0ne but with a fundamental different —— the xbox one 5. george, this is part of one of these new trends in the gaming industry, talk me through exactly what xbox are trying to do. what xbox is trying to do is lower the costs of the console. to make it more appealing. and push its gaming subscription service, essentially a netflix like service where you pay a monthly fee and get access to hundreds of games unlimited and this is part of the broader push towards the world where most of the games

are purchased digitally. according to market data, 90% of all game sales are now digital. does this mean the end of the line for hard copy games? you would think so. 5urprisingly, copy games? you would think so. surprisingly, the hard copy sales of games are holding up really well, compared to other forms of media, such as cds and dvds, which have com pletely such as cds and dvds, which have completely collapsed. that‘s because gamers still like the idea of trading in the games, to recoup some of the money towards their next purchase. and also, for some people who haven‘t got great internet connection, it‘s more convenient to buy a physical copy and not download a massive file over the internet. how big is the market going to be for this kind of thing do you think? it is growing exponentially, i can tell you that. backing the growth of

the console market, the mobile is really which is seeing huge amounts of growth, given that any of us with a smartphone is potentially a gamer. thanks. a very unscientific survey of my house as it is growing and it is costing me an arm and a leg of the gaming industry. let‘s look at the gaming industry. let‘s look at the financial markets to have a sense of how things went. a steep loss in hong kong and shanghai, seeing heavy losses today to stop japan open for the first time for six trading days, a very long holiday because they celebrated a new emperor, a new era injapan last week. you can see japan down 1.5% and some are saying losses injapan we re and some are saying losses injapan were subdued. it could have been worse if it wasn‘t for the yen

strengthening but not as much as some expected given the rhetoric coming from washington about the u5 and china trade dispute. let‘s look at europe. didn‘t bode well for europe. a mixed picture. generally just keeping its head above water, pretty flat, the ftse 100 just keeping its head above water, pretty flat, the ft5e100 down quite a bit by 0.a of a percent. let‘s talk through the market malaise with jane foley who is right next to marianne. 5he jane foley who is right next to marianne. she is. thank you. jane, you have been following the markets this morning. the big push downwards after those comments from president trump on twitter. what are the markets feeling and thinking right now about the prospects for some sort of resolution by the end of the week for the china and u5 trade spat. it suddenly seems a bit further away. we know that president trump has perhaps got an unusual type of deal negotiation and this could just be a threat. but he does appear to be willing to walk away. that has upset the market. it seems like they were so close a couple of weeks ago and now may be that trade deal is a bit more elusive than we

thought. everybody watching this very closely. the big exporters in europe, they are wondering what this could mean for them. right. in the markets, recently there has been more sensitivity in some of the european court is about talk of trade because there is a fear that president trump is going to turn his attention towards europe. at the moment they have some sort of agreement, they reached a stalemate over the steel tariffs last year and they have agreed to carry on. but, there was a threat by trump, a tweet by trumpa there was a threat by trump, a tweet by trump a few weeks ago suggesting he was very unhappy about harley davidson and the tariffs europe had put on harley davidson. and he said he is going to... europe isn‘t going to get away with that. there is a lot of concern about that. in terms of the markets, last week we saw the snp at of the markets, last week we saw the 5np at record levels, lots of earnings through now, lots of economic data through, the fed meeting last week. they said come back 5aint leger day, what is your thinking? marianne is like, what is that about? expend what that means

but i would like to know what your thinking is about the next few months —— explain what. a funny time for markets despite all this. it can be. leger day is a race meeting in 5eptember. historically, there has been some statistical validation. 0ften been some statistical validation. often that the markets can perform well early in the year and perform quite poorly during the summer months. liquidity can be a function of that holiday etc. but right now, of that holiday etc. but right now, of course, it is an interesting time with lots of big forecasters, the imf, the world bank and the forecasting world growth is slowing and yet we have stocks at record highs. this is about central banks. and central banks pushing away from last year‘s trends of extra tightening. it will suggest money will remain quite cheap and interest rates will remain low in most of the large economies in the world. come backin large economies in the world. come back ina large economies in the world. come back in a few minutes to talk us through the papers. including your gift ideas for baby 5ussex.

i would donate to charity. that is what they want. i was thinking of a teddy. i might do a teddy as well! charity is a great idea. 5till teddy. i might do a teddy as well! charity is a great idea. still to come, bring up a global beer brand, we will get the inside track on cobra, we talk to the founding chairman in the studio. before we talk about beer and babies, let‘s focus on something else for a little bit. despite the flow of worrying economic use in the uk, especially in the first—half, european chief financial officers, those with primary responsibility for the companies‘ finances, they still apparently remain wary of the outlook for their business. according to the accountancy firm deloitte. their latest cfo survey

finds a demand the biggest concern but no sign of an imminent recession. ian 5tewa rt but no sign of an imminent recession. ian stewart is deloitte‘s chief uk economist. welcome to the programme. the cfos, they really have their eye on the numbers, what did they tell you? yeah, they do, these are the people who control finances of europe‘s two largest companies. what we are seeing is a decline in optimism particularly in the euro area —— europe‘s largest companies. we have previously seen wea kness companies. we have previously seen weakness outside the euro area in places like russia and turkey. the uk, the euro area, is catching down with the non—euro area in europe. decline in optimism. less willingness to hire and invest. quite a high perception of uncertainty. and a big focus on geopolitical risk. you were just talking about trade friction. that‘s

very much to the fore of cfo‘s thinking and concern about slower growth. this fits with the picture ofa growth. this fits with the picture of a broad base slowdown in the euro area. what are they waiting for? when it comes to a trigger for them to rehire, to expand, to invest, what are they looking for? what might change things is a major shift in ecb policy. in march, the european central bank in december announced the end of quantitative easing, reversed its position, and announced more monetary stimulus. i think that has bolstered markets. it has had much less effect on business sentiments, measures of business sentiment, they are actually lower now than they were before the ecb announced its move on rates. all right. i think they are waiting for

easier policy and or better news on trade. thanks ian from deloitte. you are with business live, our top story, america‘s top trade negotiator is saying china has backtracked on previous agreements china made on talks has prime frontage president trump to threaten to more than double tariffs on 200 billion dollars of chinese goods. with some around the corner for some of us, for those of us in the northern hemisphere, we are so looking forward to a cold pint of beer at the end of their working day. is that you 5ally at 9am? 5ome people get stuck in at the middle of their day. the global beer market is huge, worth more than half $1 trillion every year with china, brazil and the u5 amongst the biggest producers. when it comes to

drinking the stuff, no one does it better than those in the czech republic, consuming on average a whopping 183 litres per person per year. cobra beer was started in 1989, born out of the idea of a less gassy beer to drink with indian food and it now has sales of more than $350 million per year and is sold in more than a0 countries. karan bilimoria is founder and chairman of cobra beer. welcome. you didn‘t bring any bit! it's a bit early in the morning! never too early at the bbc. it is never too early, we are 2a-7. tell bbc. it is never too early, we are 2a—7. tell us about how you have managed to keep this brand going because you found it quite a long time ago and it‘s been through some serious highs and lows. time ago and it‘s been through some serious highs and lowslj time ago and it‘s been through some serious highs and lows. i came up with the idea when i was a student. i was reading law at cambridge and i hated fizzy lager is, i love the british isles and i thought why can‘t i produce a beer that has the refreshment of a lager but the

smoothness of an ale that would have a globally appealing taste and go really well with all food, including indian food and curry. that is where the idea started and i started with nothing, with a business partner with £20,000 of debt to pay off with a patterned citro when it needed push starting every day. we went around to the restaurants and it is the indian restaurant, the curry restau ra nts, the indian restaurant, the curry restaurants, that gave me my opening and gave me a chance. it sounds like it was quite romantic and quite simple but it wasn‘t, was it? you have had some very tough times in the last 20 or so years, talk us through some of those. the last 20 or so years, talk us through some of thoselj the last 20 or so years, talk us through some of those. i will say the one word that sets apart entrepreneurs from other people is that they have guts. they have the guts to do it in the first place but more importantly, the guts to stick with it when others have given up andi with it when others have given up and i am nearly lost my business three times. each one of those crises came out of the blue, you don‘t often predict them but it‘s how you get through them. i found three things helped me get through them, one, having a strong brand.

the cobra brand has been resident. 5econdly, support of a good team. and yourfamily, 5econdly, support of a good team. and your family, my wife, 5econdly, support of a good team. and yourfamily, my wife, who i met one year after i started cobra, she has been through my side through the ups and downs. in those crises, do things with integrity. better to fail doing the right thing than to succeed doing the wrong things, those three things helped me get through the crises. during that time, and it has been a long period of time, you talk about cobra being a strong band, which it is, most have heard of cobra bia, especially in an indian restaurant it is the one that is recommended when you order your food one that is recommended when you order yourfood —— one that is recommended when you order your food —— cobra one that is recommended when you order yourfood —— cobra beer. how have you managed to stay in the position you are in? you have won cou ntless position you are in? you have won countless awards for the beer but in that time period, so many craft beers, it has become a booming industry and the unusual type of beer, there is so much choice, now. yes, for ten years now, it is our tenth anniversary this month, we had a joint venture with one of the biggest brewers in the world. we

have focused very much on making sure that the product itself is key. people talk about craft beers. the recipe for cobra is so complex with a rice and maize and wheat and three varieties of hops as well as malted barley and used and we have different innovation and creativity. any entrepreneur in business in this country in particular, the key to success is consciously innovating. we have a gluten free beer in this country and now we have a pale ale in india which is drinkable. we are co nsta ntly in india which is drinkable. we are constantly innovating to stop a double fermented beer in belgium. constantly innovating to stop a double fermented beer in belgiumlj double fermented beer in belgium.” wa nt to double fermented beer in belgium.” want to ask you about that. you manufacture in europe. how worried are you about all the brexit uncertainty that we‘ve had? how does that affect your business?” uncertainty that we‘ve had? how does that affect your business? i have been very clear about this for three yea rs been very clear about this for three years in my life in parliament. 0n balance, there are lots of faults with the european union, but brexit i think is a huge mistake for any business. a business like ours, we

export to almost every european country, the frictionless trait is phenomenal, so easy to do business within europe. 5imilarly, bringing in from europe, we manufacture in belgium and soon to manufacture in holland into the uk, wonderful to have this frictionless trait and i am worried about brexit. by far the best option from a business point of view, it would be to remain in the european union tattoo frictionless trade. it is still fortunately a possibility. you are in a minority in that view, how are you preparing for it? i am not in a minority, most business people think that. in terms of the referendum itself, obviously, the uk voted. that was three years ago, everything has changed, now. whichever, the point is, you still have to prepare for the uk leaving. yes. fortunately, what is very clear is that there will be no no—deal brexit because that would be disastrous, polymer to make that clear and the public wouldn‘t want that. if it is a soft brexit, norway type option where we carry on with

the customs union and single market, we can carry on as usual, still not as good as a remaining but fine from as good as a remaining but fine from a business point of view. thanks for coming, great to have you on the programme. next time, shall we get you back in the evening so we can have a beer? karan bilimoria, from cobra, thank you. this is how you get in touch with us... 5tay up—to—date with all the business news as it happens on the website. insight and analysis from our team and editors around the globe. we wa nt to and editors around the globe. we want to hear from you. get involved. what you need to know, when you need to know, business live. jamie is back as promised. we will talk about the big business of babies. of course, you know why we are

discussing this today. no, why? why meghan markle won‘t be able to keep all the gifts she is sent for the royal baby. this is quite an interesting little factoid about being in the royalfamily. it's interesting little factoid about being in the royal family. it's to do with motive. if it can be seen that somebody gave the royal couple a present because they had an ulterior motive, the royal couple aren‘t allowed to accept that gift, it has to be sent back. they can accept flowers and food, books presented by the author as long as the subject matter isn‘t controversial and other gifts which may cost less than £150,000. we asked people on twitter what they would give. quality time, no presence, space to recover and enjoy this moment in their own personal way. madisons has a lifetime of wealth and privilege? the best gift to the boy can get is for the press to the boy can get is for the press to leave him and his parents alone. all the gifts they won‘t necessarily

get, usually. it is indeed. it is a baby that doesn‘t actually need extra teddies, extra clothes, etc, some sort of charity is certainly a good idea. iam some sort of charity is certainly a good idea. i am sure there are lots of children around the country that could do with those gifts much more. dexter said a liverpool kit. 0k, we know who you support. another person says every child is born free, freedom of the most precious gift, freedom of the most precious gift, freedom from the chains of royalty. are they chains of royalty? let‘s not go there. what do you think they will call it? alexander is top of the billing but it would be interesting if they went for something different. alexander, alfred and albert. lots of as. we we re alfred and albert. lots of as. we were asking for your suggestions and quite a few have suggested 5pencer, some wider then the names. interesting, that could be an option. after diana. we will have to

wait and see. thank you. thank you for your company, keep the conversation go. thank you for watching. good morning. yesterday was a pretty cool day. in fact, for the early may bank holiday, it was the coolest on record. temperatures only got to 13.8 celsius in plymouth, yesterday. that‘s beat the previous record of 1a.5 degrees as the lowest maximum temperature. now, look at the satellite imagery, we‘ve got a swirl of cloud in the south—west, that‘s wednesday‘s whether. elsewhere across the uk through this morning, lots of cloud around and we‘ve got some showery rain affecting parts of northern england and the south of scotland. as we go into the afternoon, showers developing across wales, the midlands, eastern england, some of those showers could be heavy. but some dry and brighter weather across the south. not as cold as yesterday, temperatures 13 to 15 celsius. 5unny spells, a few wintry showers across the higher ground in northern scotland with some sunshine.

throughout tonight, you can see this whole mass of blue here, this rain moving its way in from the south—west, with that increasing wind, but it‘s going to keep temperatures up tonight across much of england and wales. 7 to 10 degrees here. still a touch of frost in the far north—east of scotland. this is wednesday‘s pressure charts, this area of low pressure, that‘s the swirl of cloud i showed you earlier. you can see the weather fronts moving their way northward. with it, bringing some milder air for many parts but the far north of scotland still staying in the colder side, the blue still hanging on there. and with quite a strong wind, it‘s going to feel quite unpleasant across many of these northern areas. as the day goes on, that rain moves northward and behind it, there will be some sunny spells and heavy and perhaps even thundery showers for england and wales. the winds will be strongest across the north, particularly in eastern parts. temperatures will really struggle on wednesday afternoon, 6 to 8 celsius. but where you get some sunny spells, there is temperatures getting up

to about 13 to 15 degrees. throughout the rest of the day on wednesday, into thursday, that area of low pressure will gradually work its way further north and eastward. this front will stick around throughout thursday and that willjust bring more cloud as outbreaks of rain, and outbreaks of rain, particularly across scotland, for a time, northern ireland and then back into northern areas of england as we go throughout the afternoon. a few showers, perhaps, toward southern areas, where, again, temperatures will get to 13 to 15 degrees. still a little bit chilly further north, 8 to 10 celsius, but things should become a bit more settled as we go into the end of the week. goodbye.

you‘re watching bbc news at 9am with me, annita mcveigh, in windsor. the headlines: congratulations from around the world for prince harry and meghan as they announce the birth of a baby boy. as every father and parent would ever say, your baby is absolutely amazing but this little thing is absolutely to die for so i am just over the moon. there‘s excitement here in windsor, as well as in meghan‘s home city of los angeles. we‘ll bring you live updates through the morning. i‘m joanna gosling. the other main stories at 9am: cross—party talks to break the brexit deadlock are due to resume, after both the conservatives and labour