this is business live from bbc news with maryam moshiri and sally bundock. as trade tensions rise between washington and bejing, one of president trump's key economic aides admits it's us businesses that will be hit in the pocket. live from london, that's our top story on monday the 13th of may. donald trump ‘stop economic adviser says the us and china will suffer over tariffs. pakistan is bailed out

by the imf, securing a $6 billion loa n by the imf, securing a $6 billion loan as its foreign currency reserves tumbled. european markets have opened and are looking like this. we'd talk to a firm cashing in on the trend for avocados and a study about people who entered the workplace around the time of the financial crisis are still paying the price in terms of how much they earn and their prospects. do you or anyone you know have that situation unfolding? do you still find it hard to earn a good wage, get loans, because of what happened in 2008? get in touch using the hashtag. hello and welcome to business live.

plenty of business stories including this one. president trump has remained defiant over the trade war with china — in the past few hours he has claimed the us will rake in tens of billions of dollars from the world's second biggest economy. on friday, the us hiked tariffs on $200 billion of chinese imports, meaning a total of $250 billion of chinese goods are now subject to 25% import duties. but the new tariffs won't apply to goods already in transit as the 04:01 gmt deadline passed on friday. as most us—china trade is shipped across the pacific, that gives the two sides a crucial grace period of up to four weeks to negotiate a settlement. the us has already signalled plans to place additional tariffs on the remaining $325 billion of chinese imports. but one of trump's key economic aides — larry kudlow —

says it is us businesses which will pay the additional import tax — warning that both sides would suffer. in an interview with fox news, mr kudlow added there was a strong possibility that president trump could meet with chinese leader xi jinping at the g20 summit injapan next month to potentially rescue a trade deal. fair enough. in fact, both sides will pay in these things. and, of course, it depends... if it is a tariff on goods coming into the country, the chinese aren't paying. no, but the chinese will suffer gdp losses and so forth with respect to a diminishing export market and goods that they may need for their own... i understand that, but the president says china, it pays the tariffs, they may suffer consequences, but it's us businesses and us businesses who pay, correct? to some extent. i don't disagree with that. both sides will suffer on this.

that is larry kudlow. with us isjinny yan, chief china economist at icbc standard bank. you listen to that and you were nodding. give us your take on where we are apt in this stalemate. some say any trust has now been eroded between the two sides. it is a clear case of leaders flexing muscles but i think it is right to think both sides will suffer greatly, particularly us consumers and this is why it is important to think about the inflation effect on consumers. things will become more expensive. 0n the china side, china policy makers can roll out stimulus policies to try to boost the economy but, at the same time, that will set back some of the structural reforms it is undergoing. china has yet to retaliate to friday's increase in tariffs. what might it do? i think

this tit—for—tat which has happened previously has not done anything great for both economics and politics. i think what china will continue to do is try to stabilise the economy at home and this is the critical thing. as long as the economic growth can be ensured to grow at roughly 6% this year, i think from a social stability perspective there is a lot more ground at home. many look towards the next g20 summit injapan as a place where perhaps progress could be made next, if the two presidents meet. we do not know if they will have a meeting. your thoughts? my thoughts are that clearly something broke down in the latest set of meetings and perhaps it was a matter of wording of the final deal itself. if nothing changes, no compromise has been reached, i still do not see

anything being signed at thejune meetings, particularly since it is a two lea d e rs meetings, particularly since it is a two leaders meeting. i think the risk is it will drag on and the longer it drags on the greater the impact on china and the us and clearly the rest of the world. emerging economies are also thinking about the greater consequences of the export market, but i think it is reflecting the changing patterns of trade supply chains around the world, because other exporters and importers will become more relevant. always good to have you with us. thanks. let's take a look at some of the other stories making the news saudi arabia say two of its oil tankers were sabotaged off the coast of the united arab emirates in attacks that caused "significant damage" to the vessels. the country's energy minister says one of them was en route to pick up saudi oil to take to the us. the commonwealth bank of australia

has reported a sharp fall profits has reported a sharp fall in profits over the past three months — after setting aside almost $500 million to compensate customers following a public inquiry. the bank's profits fell by a third to $1.1 billion, after it was forced to refund customers for charging fees on products they didn't use. struggling uk firm metro bank says it's in advanced talks to secure $455 million to strengthen its finances, as concerns remain about the bank's balance sheet. metro's shares have fallen 75% since january, after the bank announced it had a funding gap. the bank expects to raise the cash by the end ofjune. pakistan has agreed a $6 billion bailout package with the international monetary fund, which it hopes will shore up its fragile economy. the country is fighting rising inflation, which hit 8% recently and has seen its foreign currency reserves tumble in recent months. the three—year loan is the 13th time

pakistan has secured funding from the imf since the late 1980s. 0ur pakistan correspondent secunder kermani joins us now from islamabad. what is the reaction to this news? the possibility of an imf deal has been discussed in pakistan for the last year and that is because the country has operated a large physical deficit and large current account deficit that led to rapidly dwindling foreign currency reserves. the initial reaction of the new prime minister, who took power last year, had been to try to avoid going to the imf. whilst the opposition strongly criticise government that are done so but despite securing loa ns are done so but despite securing loans from china, saudi arabia, united arab emirates, it seems he realised he would need the help of

the imf. there has been criticism about the uncertainty that was caused by the delays in reaching this deal, so now there will be some relief in some quarters that a deal has been reached. thank you. we can look at asian shares with the pakistan index down. asian shares fell on growing anxiety over whether the united states and china will be able to find a deal— investors are bracing for possible "countermeasures" from china in retaliation for washington's tariff increase on friday. the european markets are not doing particular well with investors worried about what is going on between china and the us. metro bank we mentioned earlier. its share price has slumped around 8% today after the company said it plans to raise around $455 million equity

capital to support growth. we can 110w capital to support growth. we can now look at what is coming up on wall street. wall street will be hoping for a return to calm after last week's market turmoil. looking ahead, retail will be a dominant theme with walmart leading the way. the retail giant is due to report its first—quarter results on thursday. investors will watch out for what walmart executives have to say about the us—china trade spat and what tariffs might do to prices. on wednesday, the us commerce department releases retail sales data. analysts are forecasting an increase of 0.3% in april. that compares with a rise of1.6% in march. also on that day, macy's is the first of the big department stores to report first—quarter earnings. look for more details on its plans to cut costs. we have a familiar face with us. joining us now isjeremy stretch, head of currency strategy, cibc world markets. a new trading week, what is on your

mind? a new trading week, what is on your mind ? unfortunately the a new trading week, what is on your mind? unfortunately the same as last week and as we have discussed it is the ongoing trade dispute between the ongoing trade dispute between the us and china but there is a risk it could broaden out because mr trump seems to continue his push against other currencies regarded as trading unfairly with the us which puts the onus onjapan and the european union and from a global trade perspective these headwinds are not encouraging. from a global trade perspective we often hear about how it could impact the us consumer or importer and chinese consumer or importer and chinese consumer but what about globally? you are right to think about the dynamics purely in the us and china context but if we see further pressure on the chinese economy, it has an impact on exporters like germany, who have a heavy penetration into the chinese economy, so penetration into the chinese economy, so if we are to see further uncertainty and pressure in terms of the chinese growth cycle it has an impact on the german economy which

has an impact on eurozone growth so it isa has an impact on eurozone growth so it is a global perspective. what else are you watching? earnings this week, eilidh barbour, vodafone, a lot of corporate news coming through, such a busy period. —— alibaba. we are looking towards the future, that will be the important thing in terms of upcoming earnings to see if there will be signs of trade tensions having an impact, whether explicitly or implicitly in terms of earnings expectations. jeremy is coming back when we talk later in the programme so get your comments coming in through the hashtag. still to come... demand for the humble avocado is surging around the world — we'll be talking to one firm cashing in on the trend. you're with business live from bbc news.

times have been tough for british gas owner centrica. the energy supplier says it's facing a challenging trading environment thanks to the national price cap on energy bills, warmer—than—normal weather and falling natural gas prices. the company says these factors are likely to impact financial performance in the first half of 2019. david hunter, an energy analyst at schneider, is here to tell us more. give us more on what centrica had to say today. centrica said it still holds by year predictions around its performance but it has been hit from factors from outside, as you mentioned the government energy price cap means it has taken a hit of £70 million in the first quarter and warmer weather over winter, when we tend to use more gas has hit

them, and lower gas prices over the winter period. so a number of factors outside the business have impacted so far. we have seen quite a bit of pressure on the chief executive who face criticism about losing customers and also benefiting from a big pay rise. executive pay is certainly in focus generally at this time of year and centrica, the share price is around 20 year low, suggesting performance has not been in line with investors would have inspected expected so natural to be pressure in that sense. it is hit by the price cap in the uk domestic market, but also the impact of competition. people like you and me are moving away from the big six traditional dominant energy suppliers and that is impacting centrica and their british gas division. i want to ask you about

competition, how big an impact as it had on centrica? they are losing customers at the rate of 80,000 a month in the uk which is still having an impact but they are by some distance still the biggest supplier in the domestic market. thank you. 0ther other stories. if you want to have a look, business live is the place to go. an activist shareholder is pressing for a shake—up of first bus company so look at that on the business life page. your're watching business live — our top story — president trump says the us will gain tens of billions of dollars in tariffs from china. but one of mr trump's key economic advisers says it's us businesses which will pay the tariffs — and both countries will suffer.

millennials are famous for their love of social media, their preference for experiences over material things and also their fondness for the humble avocado. millennials are one factor helping to drive demand for the fruit — last year the global avocado market was worth more than $13 billion — and it's expected to grow at almost 6% a year over the next decade. iam nota i am not a millennial, iam not a millennial, does i am not a millennial, does that meani i am not a millennial, does that mean i am not allowed to like avocados? it's often described as a superfood — packed full of vitamins, minerals and healthy fats. well one firm cashing in on the rising demand is called holy moly. set up in 2016, it makes a number of avocado—based dips — and has seen sales surge. with us now is gaz booth, co—founder, holy moly. and we have this huge bowl of freshly mashed avocado which we are going to dive into. we have to do that. talk to the camera for three minutes while we

scoffed this avocado! it is good to be here and a pleasure to bring you some of our products. tell me how they started. you and your childhood friend, what got you under this business? god love him, i have known him 20 years and we have been in a few businesses together. how are you finding it? the camera is not me, i am eating. this is incredibly nerve—racking. a live taste challenge. has anyone done this before? we have done this before. you spoiled my thunder. a couple of yea rs you spoiled my thunder. a couple of years ago, much like a lot of people we we re years ago, much like a lot of people we were having an argument about coriander. we reach the time in life where all the fun has gone and arguments about coriander are the main thing so it quickly became a discussion about why we cannot buy anything at the shops that is natural, taste like home—made? i have a daughter who is dairy

intolera nt have a daughter who is dairy intolerant and most options have cream added, which is a bit ridiculous. we decided to try to find a better dip. what makes your debt better? there are so many avocado products and they are making lots of things with avocado these days. why is your avocado product different? the decision be made about making it 100% natural product so about making it 100% natural product so there is nothing in this knot in your kitchen at home and the other advantage, we make products in the heart of rural mexico using only sun ripened avocados. the difference between the ones you might buy in the supermarket, it will come from anywhere in the world, force ripened in the warehouse and will not be at its peak whereas we make products using sun ripened avocados straight off the tree. i think you can taste the difference but you have to tell me. it does taste delicious, having tried quite a bit already. as i said

when i met you earlier, i never buy preprepared avocado because ijust make it myself. i'd buy the avocado, tested in the supermarket, that it is spot on or will be in a week when i needed. ripening in my fruit bowl on my kitchen table. i will give you a high five. that is not bbc brea kfast. a high five. that is not bbc breakfast. this is not breakfast! this is business live. the key is a couple of things. i have no problem with people who make their own dip and that is how the company started, my co—founder and i could not buy anything in the supermarket that was as good as what we made at home so we set about trying to... the avocado lottery, one in six avocados is either underripe, overripe, or has black and brown bits in them.

there is an avocado lottery when you go to the supermarket and if you are an avid avocado tester. it is part of the fun of finding the right avocado, that is part of the fun of cooking. it is doable. ido avocado, that is part of the fun of cooking. it is doable. i do not have time for that. i want to get it ready made. i have three children under six i ready made. i have three children undersix i am ready made. i have three children under six i am like give it to be ready—made, i do not want to have to test. if you buy online, you cannot test. if you buy online, you cannot test the avocado. that is true and online supermarkets are growing at great rates. sales are great in the uk, are you going international? we are doing 0k, doing well, we are pleased with progress, but there is loads more to do and loads of people out there notjust in europe, even the uk, lots of people have not tried our products and we find once people try them they tend to love

them and buy them. is it expensive? there are two avocados in every packet and this retails between £2.50 and £2 79. that is another reason to smash your own, i'm sorry. each to their own and i have no problem with people who do that but we provide an option for people like myself, people who do not have the time or inclination, and to know there is an option that is natural, no additives, no preservatives. there is an option that is natural, no additives, no preservativesm does taste delicious. the team are salivating. we have to share that. the people behind the scenes want to taste it also. mumbai is where we are going next. india's financial capital, mumbai, is taking on one of the world's most ambitious construction projects — it's building its first underground metro to help bolster the city's overloaded transport system — one that is used by almost 8 million people every day. this is what mumbai's future

is and there is going to be light at the end of this tunnel in 2021. roughly 8000 workers are on the job 24 hours, seven days a week, to get line three of the mumbai metro up and running. a vital new link to a public transit system that is choking from overcapacity. suburban rail cars are so overcrowded that officials say as many as ten passengers fall onto the tracks each day. this underground network will double its capacity, with air—conditioned cars racing down 33.5 kilometres of track to key destinations in india's business hub. land acquisitions, temporary displacement of 2800 families and heavy rains during monsoon season are some of the obstacles she has had to face. so how to get it financially structured itself was a challenge and we did that with the help of japanese international cooperation agency. there is a lot riding on the success of this.

if all goes to plan, this ground—breaking project will give this city the infrastructure it needs. what other business stories has the media been taking an interest in? jeremy stretch from cibc world markets joins us again. we have been asking viewers to tweet about this story on the bbc website talking about the financial crisis in 2008 and the impact it had on young people. apparently according to reports, anyone who entered the workplace around that period is still suffering from the consequences in terms of wages, job opportunities, and they are called the crisis cohort. do you know anyone affected by this? not personally but i understand the issues in play because if you are coming out of university at that time, yourjob prospects will be compromised in then you face more competition as you go forward and as the report says, if you trade down

to get a job to try to get into employment land, the risk is you are compromised and cannot get back to the level of standards expected when graduated. it is a problem but not just this generation. going back to the early 1990s when we have the recession in 91, it was a similar story and debate at that time. for this generation it is tough, we are more than ten years on and they are feeling the impact. as for young people it affects their ability to get on the housing ladder and to say. their life chances have been set back. there has been compromised and that is a challenge and shock to the system and it is difficult to see how you can alleviate that. we have had a lot of tweets with stephen saying i finished have had a lot of tweets with stephen saying ifinished university in 2008. it was not until 2013! got my first full—time contract. and another on twitter says for a

younger generation, 22 and seeking work, nothing coming up for nearly a year. and dan from north devon, without going into details i confirm this is true. it leads us to a story in the guardian, the deputy governor of the bank of england warning about the outlook for the uk because of brexit. what we have seen from the bank of england is they have lowered what they considered to be the speed limit if you like of the uk economy so it can grow at a slower pace without creating instability and inefficiency. what we have seen is business investment has fallen. ironically that helped employment hold up because people are encouraged to get into low skilled jobs to offset some of that low level of business investment, but the outlook is challenging and the growth potential for the uk the outlook is challenging and the growth potentialfor the uk is slower and the expectations for the uk will potentially be compromised so it does not look like there is an obvious degree of good news on the horizon. thank you very much. thank

you for your company. that's it from business live today. we'll see you again tomorrow. good morning, yesterday many had sunshine and it felt pretty warm with temperatures getting up to 18 celsius. today will be even warmer and through most of this week we will see a lot of sunshine until perhaps thursday, when things will turn unsettled. high pressure firmly in charge of weather throughout this morning. you can see a bit of cloud towards scotland and northern ireland which makes the sunshine hazy. but, for most, a lot of blue skies and we keep the sunshine into the afternoon. a bit of fair weather cloud. and it is making the sunshine

milky in north—western areas. but temperatures potentially up to 20 in scotland. colder down towards the south—east, 13—15 in parts of east anglia and the south—east. tonight, with clear skies and light winds, it will turn colder and towards eastern areas of england, temperatures could fall close to freezing. elsewhere, no lower than 5—7 in major towns and cities. a colder start on tuesday but we are looking at a lot of sunshine. cloud developing once again but for many blue skies and sunshine into the afternoon. temperatures a little bit higher. up to 21 in northern scotland. it is around southern and eastern coasts where it will be colder with temperatures around the mid teens. this high pressure will drift gradually towards scandinavia by mid week. we have an east, south easterly which will bring cooler

conditions around the southern and eastern coast but for many a wednesday, we are looking at blue skies and probably the warmest day of the week with temperatures 23, 24 in north—west scotland and northern scotland. quite widely temperatures into the mid to high teens. the high pressure drifting further north by the end of the week, allowing more cloud with that easterly wind coming m, cloud with that easterly wind coming in, particularly towards the east and south eastern areas. you will notice temperatures will drop away by the end of the week and, by friday, there could be rain moving in. temperatures more likely around the mid—teens. goodbye.

you're watching bbc news at nine with me, carrie gracie. the headlines: as cross—party brexit talks resume, the shadow brexit secretary says he's not afraid to pull the plug if the pm refuses to budge on her red lines. a promise to end the postcode lottery of support for victims of domestic abuse. using their phones, making card payments and driving with no hands — police catch thousands of drivers in unmarked lorry cab patrols. killing eve slays its rivals at the baftas as it wins three awards including best actress and best drama series. to have got to a place where people love it, and you make a biggerfamily from it and you make friendships from it,