this is the business briefing. i'm sally bundock. progress — but not nearly enough, says president trump. us—mexico talks break up without a deal, as a damaging new trade war looms over immigration. plus — stalled! fiat chrysler withdraws its $35 billion merger plan with renault nissan over disagreements with the french government. and on the markets: hopes of a rate cut have boosted us shares but the news on mexico talks have taken the shine off.

we start in washington where talks between the us and mexico to avert a destructive new trade war have broken up without a deal. president trump has threatened to hit all imports from mexico with rising tariffs starting at 5% from monday, unless it takes action to curb illegal immigration. from mexico city here's will grant. from the mexican perspective, us ta riffs from the mexican perspective, us tariffs would be both unjust and unwelcome. first, unjust. while the mexican government is saying to washington that it has done everything in its power since president came to office. to tackle the question of undocumented immigrants passing through its territory. specifically, it says that deportations are over 80,000

since december last year. that is up on the same period before. they are trying to strike the balance with respecting the human rights of the people passing through mexico. the delegation in the us talking to the officials in washington, dc are trying to make those points and foreign minister said that they were discussing that point and didn't talk about tariffs at all. he said that they were very optimistic that they would —— going into thursday's talks. second, the question of it being unwelcome., talks. second, the question of it being unwelcome. , of talks. second, the question of it being unwelcome., of course they are. how could they be? the idea of going tariffs from 5% to a high of 2596 going tariffs from 5% to a high of 25% on all goods crossing into the united states. that is notjust on avocados, tomatoes, red, vegetables. but also fridges, white goods, televisions, cars and car parts, anything you can imagine. around about $350 billion worth of trade a

year. little wonder they are very, very unwelcome for an economy that is already fragile. the idea of a way to increase tariffs — make greater increase tariffs could push the fragile economy to precision. —— recession. let's move to india now, where economic growth is at its slowest in five years. that weakening economy means the central bank is widely expected to cut borrowing costs today. that decision is due in less than two hours time, it would be the third cut in as many months. sameer hashmi is watching this for us in mumbai. tells about today's decision. in about two hours from now we will know the decision but what is widely expected is that the bank of india will go ahead with the 25 point cut. this is the third card as you're referring to in as many policies. the reason for that is that if you look at india's economic growth, it

has fallen over the last few quarters. is that a five year low. the prime minister winning a second term with the big majority, the government really wants to push the growth agenda ahead. it is expected to ta ke growth agenda ahead. it is expected to take a lot of decisions over the next few months which will hopefully help revive and resurrect growth and arrest the slowdown. with retail invasion which has been one of the prime concerns for the reserve bank of india, it is lower than what is the comfort level for the indian central bank. they will go ahead with the rate cut to give a boost to the sentiment on the ground. if you look at the indian economy, unlike china it is driven by the domestic economy. so the more money people spendin economy. so the more money people spend in india, the more economy grows. they want to give a big boost to not only businesses but even consumers which will help revive growth. we will talk to you and if

you hours of me get that decision. —— when we get that decision. let's go to asia now, where shares of nissan have fallen sharply after fiat chrysler said it's withdrawing a $35 billion offer to merge with its partner renault. rico hizon is following the story. nice to see you. tell us about this, the dealers off? —— the deal is off? it boils down to the french government asking for more time. you have nissan motors which owns 15% sta kes have nissan motors which owns 15% stakes in renault. and renault holds a 45% stake in nissan. against this whole deal, a merger with the italian—american carmakers would have made it one of the largest comic is in the world but the french comic is in the world but the french comic as board which includes two nissan representatives, they failed to reach an agreement on the fiat chrysler proposal. the merger proposal came when the time where

renault had already been facing challenges as part of an alliance with nissan. the former chief executive of both renault and nissan awaiting trial is following the fourth arrest injapan amidst allegations of financial misconduct, allegations of financial misconduct, allegations which have put a lot of strain on this 20—year—old alliance which includes japan's mitsubishi motors. if this was successful, this mega group would be by far the world ‘s biggest, selling vehicle surpassing toyota. seeing nissan stocks falling in tokyo trade. the european central bank meets in a few hours time — amid growing concerns that italy could cause a new debt crisis in the region. those fears saw italy's borrowing costs on bond markets spike on wednesday. the international monetary fund is warning europe's finance

ministers that italy's debt levels are a major risk to the euro zone economy — along with the global trade tensions and a possible hard brexit. italy owes $2.6 trillion and rising. or more than $43,000 for every italian. as a share of the country's annual economic output it's now higher than greece's was when it was forced to ask for a bailout from the eu and imf. brussels estimates that last year italy paid over $73 billion in interest — that's as much as its entire education budget. for the size of its economy, debt levels are well over twice what eu rules allow. and on wednesday the european commission recommended starting disciplinary procedures against italy — as adam fleming in brussels explains. under the eu ‘s treaties, the ratio of the country ‘s national debt to

the size of its economy, its gdp shouldn't exceed 60%. in italy it is currently more than i30%. and it shows no sign of shrinking anytime soon. 0fficials shows no sign of shrinking anytime soon. officials at the european commission in brussels save that debt interest payments in italy equates to the equivalent of 1000 euros for every single citizen there. they also it poses a risk to there. they also it poses a risk to the entire european economy. eimear daly is a foreign exchange strategist from macquarie. nice to see you again. so we've focusing on italy to be honest. but the european central bank has to consider the entire eurozone. what might it decide to do today? consider the entire eurozone. what might it decide to do today7m consider the entire eurozone. what might it decide to do today? it will be critical, the decision today. the issue with italy and its bonds is that its biggest holder of italian debt is the banking system. the more

the bond sells often drops in value, the bond sells often drops in value, the mode undercuts the capital base of the italian system. the letters able to lend out. basically today there expected to release details on there expected to release details on the operation which is a series of bank loans. we expect them to infinite a discount on the pricing of those loans to the packing sector, religious support italian banks and make sure that lending can be ongoing to boost growth there. because when we look at the situation with italy, it's much more ofa—— situation with italy, it's much more of a —— much more of situation with italy, it's much more ofa —— much more ofan situation with italy, it's much more of a —— much more of an importance than when greece was on its debt crisis because the italian bond market is so good, isn't it? if it we re market is so good, isn't it? if it were to go through a big crisis, it would cause big modifications across the global bond markets. absolutely. the issue is that the eurozone has set up the european stability mechanism and all the sorts of bail and permits stopped they have the

amount of firepower to deal with italian debt when it is so big? i think the european central bank has been really good in the eurozone but —— but for italy, there is a massive risk in terms of having a debt cycle. so they are firefighting and away but at the same time, the ecb has to consider the long—term outlook for the eurozone. it's not looking that good. the key economy is really struggling. the issue of them as well as that they are running out of instruments so now the interest rate is at zero. how much more can they cut? deposits are already negative so they want to use it they have left which is to be used to the maximum effect. you need to get bang for your buck so they will increase the pricing and a steep discount for these loans. let's quickly show the financial markets.

that's it for the business briefing this hour. the bbc understands that ford will announce the closure of its engine plant in bridgend later today. union leaders have been called to a meeting at the company's headquarters at midday today. the site employs 1700 people, with many more working in the supply chain in south wales. bbc correspondent tomos morgan reports.

just four years ago the future looked right in bridgend. a new order of a court of a million engines were scheduled to be built here. yet a year later, that production number was halved. fast forward than to january this year and the company announced they were cutting 1000 of the welsh workforce. and now, there are fears that today's announcement may signal the end of ford in south wales. these fears comejust 2a end of ford in south wales. these fears come just 2a hours after car sales in the uk fell again. it is understood this meeting will involved senior managers coming over from the american company to discuss the future of this plant in bridgend. —— involve. the union have said it could be a disasterfor the workforce and one which have a wider impact on this town. i think the whole economy could suffer. we've got a lot of independent businesses in this town who rely on customers,

eve ryo ne in this town who rely on customers, everyone that works in the plants. we've had this for so long now, it's going to be 2020, 2021, everybody expected it. they'll expect them to come along but now it's happened and it's a bit of a shock. for 40 years, temple nike has been a bedrock of the economy. it has its town —— time in south wales come to an end? let's ta ke in south wales come to an end? let's take you live to normandy, you can see this speech here. my colleague will be presenting from normandy this morning for breakfast was to thatis this morning for breakfast was to that is of course at six o'clock. this is the briefing from bbc news. the latest headlines: second world war veterans will be joined in northern france by world leaders to commemorate the start of the d—day landings in normandy 75 years ago.

mette frederiksen is set to be denmark's youngest ever prime minister after fighting the election on environmental issues — her social democrat party has won more than 26% of the vote now it's time to look at the stories that are making the headlines in the media across the world. we begin with le figaro and the 75th d—day anniversary commemorations. the paper's headlines reads sixth june 1944 the morning of freedom. meanwhile, on the times front page, d—day veterans were given a standing ovation as the queen lead international tributes among other world leaders to those who took part in the normandy invasion. the guardian reports on us president donald trump who after attending the d—day commerations travelled to ireland and waded in controversy after likening the irish border issue with his own plannedwall at the us—mexico border. meanwhile, the south china morning

post focusses on another anniversary, china's president xi jinping's three—day visit to russia to mark the 70th anniversary of diplomatic relations between the two countries. bloomberg says millions of britons are facing financial hardship in old age. with the over—65s projected to account for a quarter of all people in the uk within the next 20 years, the institute for fiscal studies said britain is woefully unprepared for the challenges posed by an ageing population. and on the mail 0nline website, are we becoming far too lazy to even be bothered to make ourselves a sandwich as the popularity of online food delivery apps surges throughout the world. algorithims for companies such as deliveroo and just eat show that orders of basics such as a bacon butty or a simple cup of tea are now increasingly considered normal. with me is henry bonsu who's a broadcaster and commentator