this is the business briefing. i'm sally bundock. talking trade — the uk agrees in "principle" a deal with south korea that includes keeping zero—tariffs on south korean exports such as auto parts and automobiles. a multi—billion dollar deal in aerospace — two of the world's largest defence companies agree to merge parts of their business. and on the markets: news of the us will not be imposing ta riffs news of the us will not be imposing tariffs on goods coming in from mexico has brought relief to markets. we will talk about that trade story as well in more detail

ina trade story as well in more detail in a moment. these are busy times for trade negotiators. the uk's secretary of state for international trade, liam fox, hasjust signed an "agreement in principal" on trade with south korea. the deal includes keeping zero—tariffs on south korean exports such as auto parts and automobiles after britain leaves the european union. remember, the uk cannot sign a formal agreement until it leaves the eu — trade negotiators are doing all they can to ensure a smooth path once it does. what it means is that if britain leaves the eu without a deal, we get

continuity in the trading arrangements are businesses can claim for both trade and investment with confidence. if we do get a deal, this means we now have a springboard to a future trade agreement that can be more ambitious than the one career currently has with the european union. for both of us with the european union. for both of us it is forward—looking, ambitious and confident. suzanne spears, from partner, allen & overyjoins me. good morning. this story has literally been breaking overnight with international trade secretary making it clear he is doing all it can to position the uk post brexit? exactly can to position the uk post brexit? exa ctly a nd can to position the uk post brexit? exactly and this accord is significant because it is the first agreement with asia one of these continuity agreements to ensure the trade policies already in place by way of all of the amalgam of

treaties that the uk has access to, some a0 treaties through its membership in the year appear union, can continue. that's that in the european union. this is the first one in asia. let's talk about the other big trade story, that has shifted over the weekend, the relationship between mexico and the us. the trump administration saying we're going to slap tariffs on goods coming into the us from mexico today if changes were not made but it would seem that has been delayed or some sort of agreement reached. would seem that has been delayed or some sort of agreement reachedm is an interesting situation because over a period of about nine days, the trump administration was saying they were going to slap tariffs on a key ally, one which is closely intertwined economically. it would bea intertwined economically. it would be a cold war area statute that of

course, iam be a cold war area statute that of course, i am a lawyer so i am interested that but it had implications for the national security and traditionally it is used to sanction enemies, that statute and in this case it was going to be is against a key ally foran going to be is against a key ally for an issue which had nothing to do with trade whatsoever but immigration policy. what has shifted? the trump administration says they have reached an agreement with the mexican government that allayed that concerns. mexico would deploy a national guard to the board with what guatamale. there was another controversial proposal to have a treaty meaning asylum seekers needed to seek rescue first in mexico before attempting it in the

us but that aspect of the agreement did not materialise in the. thank you for your expertise today. the mexican peso has a jump and relief to the financial markets when it comes to these various trade spats between the us and other countries. let's have a look at how china is doing. china's exports unexpectedly returned to growth in may despite higher us tariffs, but imports fell in a further sign of weak domestic demand. let's go to our asia business hub where sharanjit leyl is following the story. talk us through these numbers and what it might tell us about the impact of the trade war on the world ‘s second biggest economy? impact of the trade war on the world 's second biggest economy? as you say, expert unexpectedly rebounding, a sign that the stand—off does not appear to be hitting the country

adversely, at least where the stuff it sells is concerned. imports have plunged, however, by the most in nearly three years and that trade war is intensifying with both countries essentially showing no signs of the escalating tensions. an 8.5% plunge in imports. part of the reason for the unexpected rise in experts in may analysts are saying could be due to the fact that some companies may have rushed out that shipments earlier in the hopes of getting good out before even higher ta riffs getting good out before even higher tariffs took effect. china's trade surplus with the us, and other major irritant for washington, actually widened to nearly $27 billion in may, it was $21 million the month before and that will rise president

trumpi before and that will rise president trump i are ahead of a meeting he expects to have with china's xi jinping at the end of the month for the 620 jinping at the end of the month for the g20 summit in saga. we will be watching that very closely. —— 0saka. now let's brief you on some other business stories: two of the world's largest defence companies have agreed to an unusual merger. america's united technologies will merge its aerospace business with missile maker raytheon to form an industry behemoth worth some $116 billion. the new company would instantly become the world's second—largest business in the field —— behind lockheed martin but nudging boeing into third place. the pound remains under pressure this morning as the contest to find britain's next prime minister officially kicks off later. that's as nominations for the leadership of the ruling conservative party are set to close. and with the very real possibility of a no—deal brexit looming traders are braced for more

falls in sterling. this week sees the biggest event in the video games calendar — the e3 gaming show in los angeles. over the next week we'll be bringing you reports from the show. but first up, microsoft held its glitzy briefing, a chance to show off its latest work. this year, they announced a brand new console, codenamed project scarlett, which will be released by christmas 2020. 0ur north america technology reporter dave lee met with microsoft's head of xbox, and asked him why the firm was launching a console at a time when many think the games industry will move into streaming. what we have found now is the ability to not only make great games look great on screen but really the focus on how they feel. up to i20 frames per second, giving people the lowest latency and the ability to manage how a game looks today with oui’ manage how a game looks today with our it feels. a lot of great games

look amazing, sometimes when you grab them, they do not hold in the same way. feel and visual and we wa nted same way. feel and visual and we wanted to build a new piece of hardware and that is what project scarlett it is. how will the platform work and how much will you charge people to use it? this is first public trials and we will take feedback as a team. last month, we added an xbox developers had a way of trying it out themselves. we have thousands of people building games and now that they start to feel the game coming from the cloud, they will start to think about their experience on a smaller screen and build towards that. we will talk about more as we roll it out. we will bring it to the public in 0ctober. will bring it to the public in october. i am excited about the road

ahead. a huge new competitor in google. they are lodging their streaming platform, $10 a month. are you worried about your ability to compete with google? what drives us is our desire to exceed expectations of customers and fans. we have a long history in the game industry and we have a lot of friends and partners in the industry. when i think about our biggest opportunities, it is always how to exceed what our customers expect. that is why i like coming to the show, to feel the passion. that is the latest from the e3 gaming show. we will hear from dave moore during the week. president trump suspending the week. president trump suspending the tariffs on goods coming in from

mexico. markets now all looking ahead to the g20 summit where xi jinping and donald trump could be meeting. that is your business briefing. alcohol products sold in the uk are not being clearly labelled with the latest advice on safe—drinking, according to research by the bbc‘s panorama. adrian chiles reports. we understand about eating five a day and the need to stop smoking but how many of us know the guidelines in safe drinking. the uk chief medical officer introduced new low

risk drinking guidelines. what had previously been 28 units for men and 21 units for women, was now set at 14 21 units for women, was now set at 1a units for both. the alcohol industry was given until september this year to clearly update the labels that we take 100 labels in stores across the uk and only 1a had the new lowest drinking limits. stores across the uk and only 1a had the new lowest drinking limitsm is not acceptable to be displaying the old guidelines because they could be inadvertently putting consumers a greater risk. what this information might indicate is that asa information might indicate is that as a man you could drink 100% more than the current weekly guideline so this information really does need to be removed. the uk alcohol industry decides for itself what information to put on its products. the portman group says its aim is to promote responsible drinking. group says its aim is to promote responsible drinkinglj group says its aim is to promote responsible drinking. i think the industry's job is to communicate the footing units in the context of wider risk and the industry does

that. this has been produced since then, why have they not changed? we we re then, why have they not changed? we were given a period of grace to change labels and that ends in september. 0ngoing discussions about how they communicate the risk and the guidelines. the department of health told us it is working with industry to implement the chief medical officer guidance and getting shown on labels. this is the briefing from bbc news. the latest headlines: hong kong's leader has said she has no plans to withdraw a controversial draft law that would to allow extraditions to the chinese mainland, despite a demonstration by what organisers estimate was a million people against the proposal on sunday. exit polls from the presidential election in kazakhstan indicate a clear victory for the interim president, kassym—jomart tokayev, who's predicted to have taken more than seventy percent of the votes.

anti—government groups in sudan say at least four people were killed during a day of civil disobedience on sunday. they blamed the ruling military council for the deaths. now it's time to look at the stories that are making the headlines in the media across the world. we begin with french newspaper, le figaro, and it has president macron's response to borisjohnson saying he won't pay the brexit divorce bill if he succeeds theresa may as uk prime minister. the uk's daily mirror focuses on another leadership contender, michael gove, and the calls from within his own party for him to pull out of running over his admission he took cocaine. on to the financial times, and it reports on the g20 agreeing a cross—border shakeup that

willl see big tech firms like facebook pay more taxes. the times celebrates british tech firms. in particular, unicorns, the name for those worth more than $1 billion. the paper says britain has the most in europe. and celebrations too for spain's abc — its front page dedicated to rafael nadal whose won the french open for the 12th time. with me is eileen burbidge, co—founder and partner at passion capital. you cannot avoid anywhere in the world, it would seem in france, they are discussing the possible tenders for the leader of the conservative party and of course prime minister. they're looking at borisjohnson and the french prime minister ‘s