this is business live from bbc news with ben bland and sally bundock. trade wars and trade deficits, in a few hours from now we'll see if president's trump's policies have boosted the us economy. live from london, that's our top story on wednesday the 3rd ofjuly. official figures will show if washington has managed to narrow the gap and reduce its trade imbalance with the rest of the world. also in the programme: no tick for nike, as the sportswear giant is accused of being too "politically correct" in arizona. we have the latest from the global

markets for you, optimism and prevailing on the prospects of a new ecb head. and, staying focused, we will be hearing from the founder of a popular mindfulness app which has gone global, also, we are looking at children, and when they start to develop money habits, apparently, good and bad, they start learning by the age of seven, so we want to know, when should you start teaching them about money, seven, is that the right age? too young? get in touch, use the hashtag. i remember getting pocket money, saving up, does anyone do that anymore? get those tweets coming in. the us will reveal its latest trade numbers today — as its spat with china rumbles on. president trump has made reducing

america's deficit a key priority. in april the deficit narrowed to just under $51 billion. but it wasn't just imports which fell — american exports dropped dramatically — the biggest fall in three years. some countries have benefited from the trade war. mexico, the eu and canada have all seen their exports to the us rise substantially this year as trading patterns have shifted. but economists warn that rising tariffs will be bad for the world economy. the imf has lowered its forecast for global growth to 3.3%, citing trade tensions as a key reason. joining me now is thomas gift, who's a lecturer of political science at the univeristy college london. what are we expecting these trade numbers to tell us? early indicators from the us commerce department suggest we will see an increase in the trade deficit, overall, and that

isa fairly the trade deficit, overall, and that is a fairly significant shift from what we saw in april. that is not the message president trump wants to be told. certainly not, he has made reducing the trade deficit a marquee pa rt of reducing the trade deficit a marquee part of his economic platform, he has banked on tariffs imposed on china, particularly reducing the trade deficit, so this is not good news for him. why is the trade deficit not shrinking, is it because the us is drawing in lots and lots of goods, but from different places? great question, and you are precisely right: the united states is imposing tariffs on china but what we see its underlying shifts in global value chains. instead of buying goods from china, we are buying goods from china, we are buying goods from elsewhere: south korea, vietnam, mexico, other countries. and canada has been mentioned as well. in terms of tackling this problem, what do you think the trump administration might do next, they seem to be very

focused on, you know, tariffs and forcing change on the part of countries it trades with. donald trump isa countries it trades with. donald trump is a one trick pony when it comes to this, tariffs is his only answer, one thing he has to bear in mind, deficits, according to most economies, are not the best indicator of economic health, if you wa nt indicator of economic health, if you want to improve chances for 2020, create jobs, boost wages, want to improve chances for 2020, createjobs, boost wages, so want to improve chances for 2020, create jobs, boost wages, so on. when it comes to creating jobs, shortly after taking office, many big manufacturers around the world, including carjoints, they talked about new factories in the us and expanding factories. that is the case but a lot of the investments are relatively short term, looking at the comparison for these companies, will you invest in other wages with low wages, places where production costs are lower, it is an easy call. thank you for your time.

let's take a look at some of the other stories making the news. international monetary fund chief christine lagarde has been nominated to become the new president of the european central bank. if appointed she will become the first woman to head the eurozone's monetary policy maker. ms lagarde has temporarily stepped down from her role at the imf, with her deputy david lipton standing in as acting managing director. indian tycoon vijay mallya has won the right to challenge in court britain's decision to order his extradition to india to face fraud charges. the high court in london ruled the appeal by the 63—year—old owner of kingfisher beer should proceed to a full hearing. his case relates to the alleged diversion of loans from state run banks. no date has been set for the appeal hearing. a giant of the us car industry has left us. lee iacocca, the charismatic executive who gave america the ford mustang and was celebrated for saving chrysler from going out of business, has died at the age of 94. he also led the campaign to restore the statue

of liberty and ellis island. tesco is the uk's biggest supermarket. a quarter of all the money brits shell out on groceries is spent in one of its stores. in an exclusive interview with the bbc, tesco's ceo dave lewis told us why planning for the new brexit deadline in october is proving "more difficult". yes, in march, for long life things, we did take some stock, in order that if, depending on what the outcome was, we could help customers through that time of turbulence, it will be more difficult to do that in october because all of the network will be getting ready for christmas, less capacity, but we will do whatever is practical, depending on how things develop between now and then, whether it is a deal or no deal, the devil is in the detail, what will it mean for the movement of produce, will there be tariffs, will there be hold—ups at the

border, we will have to wait and see. you cannot worry about it, it is not directly in our control, we will do the best thing, whatever changes are, we will be clear, we will do whatever we can to help customers through it and safeguard the business as we go through the change. tokyo stocks closed lower, weighed down by a higher yen which hits japanese exporters. there were also losses in chinese shares as the euphoria from us—china trade truce fades. hong kong stocks fell following the previous day's big gains, with energy firms hit by a sharp drop in oil prices since the start of the week. european stocks are flat — slightly higher amid general optimism that incoming ecb president christine lagarde will maintain the central bank's

stance on keeping interest rates lower for longer. that keeps money flowing through the system. us markets closed higher on tuesday — they're on a half day of trading today and closed on thursday for the indepenence day holiday so expect trading on wall street to be thin. meanwhile, nike has become embroiled in a political row — over a pair of trainers. it's because they feature an early version of the american flag which has in the past been associated with the far right and slavery. michelle fleury has more from new york. the decision drew complaints from many conservatives from ted cruz, but most notable response was that ofa but most notable response was that of a republican governor of arizona, who on twitter earlier on tuesday morning announced that he had ordered the arizona authority, the arizona commerce authority, part of an economic agency, to withdraw incentives the state had offered nike to build a plant in goodyear, arizona. —— doug ducey. he said that it was supposed to be a good day in

arizona with the announcement of this investment, he said he could not express his disappointment in words that nike had made their decision and now we are making hours. this obviously comes after the state was providing these incentives for the company to locate there are, the deal was only announced on monday, according to records, was apparently expected to bring about 500 full—time jobs to the area outside of phoenix. but, of course, now, all of that seems to be thrown in doubt. interesting, so, the shoe is not fitting for nike. joining us now is sue noffke, uk equities fund manager at schroders. let's get your take on christine lagarde. bit of a departure from a normal central banker, because her cv looks different, not an

economist, she does not have goldman sachs on her cv, either, though, she comes with a different skill sets... she is a lawyer. different background. a lot of skills built up at the imf, where she took her role they are by surprise, really, because she came in when there was a scandal with the previous person, and she has proven herself, she has prove n and she has proven herself, she has proven with political skills, very adept at negotiating, that may be something that the ecb needs to have in its armoury. also, so keenly aware of the weaknesses and the strengths in the eurozone, because with the european central bank and the european union, the imf was part of the so—called troika at the time which decided whether to bail out portugal, ireland, greece, etc. yes, the european sovereign debt crisis, she was central to that, and we may see some of those strains come back

again. for the ecb see some of those strains come back again. forthe ecb to see some of those strains come back again. for the ecb to have to contend with. certainly, if she gets the role, she will have to content with subpar growth and low levels of inflation. and, you will have to put together a package of different monetary policy tools that pay we have not yet seen. good luck to her, if she gets the job! later we will be going through the newspapers. one of thejobs be going through the newspapers. one of the jobs that can be quite stressful, the ecb president, you might want to relax, take your mind off it, take a breath, let the stress takeaway... we will be speaking with the founder of a meditation app about how he is making money from mindfulness.” will be tuning in, i'm with you on that one! supermarket giant sainsbury‘s has warned that the consumer outlook continues to be uncertain after it saw a further slide in sales. the business is still reeling from its failed bid to merge with rival asda, which was blocked

in april by the uk's competition watchdog overfears it would raise prices for consumers. bryan roberts is global insight director at tcc global. good to see you. morning. shares down 2%, what you make of them? on the face of it, really not great numbers at all, food sales were down, quite an alarming drop in clothing sales, nearly 5%, although they claim they are gaining market share, they claim to have overtaken tesco in the clothing market, we will hear from primark tomorrow, it is unlikely they will see such big declines, but they say there food performance is improving relative to the market, translation of that could be they are getting less bad. absolutely brutal marketplace at the moment, the disconnect is growing, growth is not slowing down, resurgence at tesco, asda doing relatively better as well. so, nowhere to hide in the market.

investing heavily in improving their stores, improving prices and their range. there is some underlying good news perhaps in the future but as things stand, disappointing set of figures. overshadowed by the failed attempt to merge with asda. yes, thatis attempt to merge with asda. yes, that is still a big disappointment. incredulity in the market, the competition authority, so harsh on that proposed merger, given the relative scale of the business, the combined businesses compared to tesco, a big disappointment, they need to put that behind them, they need to put that behind them, they need to put that behind them, they need to drive this forward. nice to hear about improvements in stores, enhanced technology for shoppers, investment in lower prices as well. as things stand, not great but some of these investments will start paying dividends hopefully, and it is distressing to say this as we head towards christmas. yes, heading towards christmas? laughter really... i can't think about that.

we have not even had some i get! —— we have not even had summer yet. your‘re watching business live, our top story, in a few hours from now, official figures will show how the us economy has been performing. many investors will be keeping a close eye on the numbers, which will show if america has managed to reduce its trade deficit with countries like china. with modern life getting ever more hectic it wouldnt be surprising if you felt under pressure from time to time. more and more of us are turning to meditation to deal with the stresses and strains of 21st century living — and that's led to a big rise in the number of apps designed to help us meditate. one of the biggest players is headspace.

it was founded by two britons — andy puddicombe, a former buddhist monk, and rich pierson a former advertising executive. egon cossou spoke to rich pierson who explained why they started the company. i was working in advertising, and i was very fortunate to work at a great company where they gave me a lot of responsibilities as a young man, iwas lot of responsibilities as a young man, i was 25,26, lot of responsibilities as a young man, iwas 25,26, i lot of responsibilities as a young man, i was 25, 26, i was lot of responsibilities as a young man, i was 25,26, i was not equipped to handle that type of pressure. and i was getting acupuncture at the time, and my acupuncturist said, have you ever thought about being an acupuncturist, and i said, no, not at all. they said, i think you will be really good. i quit myjob the next monday, and i was trained to be an acupuncturist, and andy was teaching meditation, at the place... andy is...? my teaching meditation, at the place... andy is. . . ? my co-founder, teaching meditation, at the place... andy is...? my co-founder, about teaching meditation, at the place... andy is. . . ? my co-founder, about one year later, i was introduced to

andy, and at that time, i was really struggling with a lot of anxiety, when i met andy, and he was teaching meditation at a clinic in london, and he wanted help marketing it, how can we make it bigger, i was struggling, he said, let's do a skill swap. this is predicated on it working, reducing stress and anxiety, how can you be so certain that this works? people say, is meditation a fad? well, it has been around for 2500 years, that is the longest fad in history(!) the reason it has lasted that amount of time is because it works, i don't think people would carry on doing it if they did not have a personal experience of it working. it is a really competitive space, one of billions, how do you maintain an edgein billions, how do you maintain an edge in that work environment? authenticity is the first thing, we see the 2500 years of research and development that went into the

training, andy's training, went off to bea training, andy's training, went off to be a buddhist monk, he has translated it in a way that a modern audience can understand, that gives confidence that it has been passed down because it works. the second thing, science, we have really invested, we are the only meditation app invested, we are the only meditation app that has spent time, resources and effort working with the world's largest scientific institutions, and universities, to really start to prove out how this works and why it works. how are you monetising this? we have a free product, you give youre—mail, we have a free product, you give your e—mail, access to free content, and then we have a subscription service, monthly, yearly, and lifetime membership. we also have a btob lifetime membership. we also have a b to b service, we supply headspace to industries at scale, unilever, for instance, will come to us and say, we want access, and we will do a licensing deal. that business has kind of grown, in revenue over the

la st kind of grown, in revenue over the last 18 months. that is a big growth area for us. where does growth come from for you. three core areas, core subscription that we have, and that, just in english, last year we did north of 100 million in revenue, the majority of that was from the core subscription business, i think we just launched in germany, and we have got more languages launching this year. huge growth in the core business, we talked about the enterprise —— micro—enterprise business, 350 enterprises at the moment, that is really early, we have only been investing in that in the last couple of years, we work with a lot of athletes as well, i was at the arsenal, and i am a big arsenal fan so i was happy with that! we are working with professional athletes and they have the same performance mindset: how cani the same performance mindset: how can i use techniques like meditation

to get the edge in performance. third headspace health, where we are trying to get fda approval at the moment for headspace, against a whole range of chronic diseases. just to be clear, that is not to replace drugs, it is not to replace other modalities of treatment, it is to be part of the treatment plan. where do you want to see headspace ten yea rs where do you want to see headspace ten years hence? if we could ink about and look after our mind with the same effort that we look after our body, our hair, social media accounts... we could reframe how we spend time trying to be healthy and happy and the mind is a core component of that, and headspace being a part of that journey, component of that, and headspace being a part of thatjourney, then that would feel like a real success. one of the co—founders of headspace the air, richard pearson. one thing

that stresses people out is managing money and finances, it is... it is one of those things. then, master of the segway! he is... here's another one. “— the segway! he is... here's another one. —— ben. the segway! he is... here's another one. -- ben. the earlier you start learning, the less stressed you are likely to be. research shows that money habits are set by the age of seven years old, yet only about half of parents talk to their children about money matters. at a meeting of head teachers and authorities in the uk today, many will call for better financial education in primary schools. well, one class in london has been trying it out.

joining us again is sue noffke. you have 11—year—old twins, do you talk about budgeting with your children? yes, all of that, day—to—day, going shopping, trips, making family decisions on budgets. how much to spend on an item, what are the pros and cons of buying

something. seems more expensive up front but lasts for longer. saving as well. also, and... couple of pa rents as well. also, and... couple of parents chatting away, here! one thing i do is when we are in the oil in the supermarket and they pick a product, i sort of say, hang on a second, this one is on special, 342, is that cheaper? it is all about maths skills as well, we try to work it out. —— three for two. maths skills as well, we try to work it out. -- three for two. i do all my shopping online, so it is more tricky, but my children are at an age where they can take a list, go to the local stores and come back with the items of which we have run out, like and i can say, how much will this cost? make sure i get the change. all of those things.” remember, as a kid, weekly pocket money, and in order to save, to wait to get stuff, i'm going to sound like, "back in my day", but nowadays, there doesn't seem to be as much of that. it's more like, if

you want it now, you can have it now. it is important to wait and to save. my children are now at the stage of getting cash presents, which is exciting, and then it is the choice of how much they can spend. we have a split between their account as to what they can spend, about one quarter, and what they can save... since i started my career in financial journalism, save... since i started my career in financialjournalism, one thing i have found, personal finance education in schools has been discussed for more than 20 years! the fact it is needed, there is a huge lack, it still seems to be the case. we have been asking when you think we should start teaching kids. seven is too early, says priyanka, ten yea rs seven is too early, says priyanka, ten years old is the right age. basic economics, teach them. ian says, makes total sense for children to learn about money at primary and junior schools. and once they get to secondary school, once they are

teenagers, teach them about personal finances, mortgages, pensions... gosh, that is quite early! never too early to talk about pensions, never too early! thank you for all of that. this story in the financial times, oil and gas become dirty words in ftse rebranding. all about new energy, renewable energy, and nonrenewable energy. there is a big move to incorporate environmental, social and government factors into investment, and the indices are following up on this trend, they are splitting the old oil and gas producers into nonrenewables, the dirty part. and, the clean alternative energy companies are now being rebranded as renewables. it is harming their image, when they are already grappling with consumers being more aware of environmental

damage, and concerned by this. many are large companies and must be part of the solution, that is where we as investors have to be part of that engagement. a company, shell, for instance, they have made a number of large investments, internally and acquisitions in the renewable space, looking to transfer from the traditional oil and gas exploration and production into alternative fuels. so, that possibly does harm a lot of their initiatives. they are not getting recognition from that within the indices, so what is their incentive? you told us about the sovereign wealth fund in norway, thatis sovereign wealth fund in norway, that is the worlds biggest. by quite a long way. moved to exclude oil and gas companies that they are... that are focused purely on exploration and production and not renewables. that captures the big companies that have an element of renewables too.

thank you, thank you for being with us. thank you, thank you for being with us. the music is playing, that means it is the end of the programme. we will see you soon. good morning, it has been a lovely start to the day for many parts of england and wales, lots of sunshine out there at the moment, and as we are going through the day, is going to stay largely dry with those sunny spells, i say largely dry, in the far north of scotland, some outbreaks of rain, mainly in the far north—west, more cloud for scotland and northern ireland into the afternoon. england and wales, fairweather rain developing, —— cloud. maximum temperature is getting up to 15 to 18 degrees northern areas, up to 22 celsius in the south—east. at wimbledon, on wednesday, we are going to see dry weather with those sunny spells and fairly warm afternoon to come as

well. as for this evening, little change, rain continuing in the far north of scotland, northern isles eventually seeing rain, clear skies elsewhere, patches of mist into the early part of thursday morning, temperatures down to eight, 11, 12 degrees. could turn fresh first thing. without the sunshine, warming up thing. without the sunshine, warming up fairly quickly for many of us across england and wales, further north, a bit more cloud around and you will notice, more persistent rain moving its way into the far north and west of scotland. that rain could become quite heavy as we go rain could become quite heavy as we go through the day, an inch of rainfall in the north west of scotland, some protection for the mountains towards eastern and southern areas, a little bit drier here, temperatures 14 to 16 degrees, feeling quite cool. in contrast, england and wales, warmer day, highs, 23 to 25 degrees. that rain follows in the far north and will continue as we go into friday, the

cold front is lingering in the far north and the west. some cloud across scotland, into northern parts of england. elsewhere, across england and wales during friday, more sunshine and a warmer day still, temperatures up to 27 celsius in the south—east, fresher further north, 14 to 17 degrees. that fresher air, coming north, 14 to 17 degrees. that fresherair, coming in from north, 14 to 17 degrees. that fresher air, coming in from the north, moving south as we go through the week, cold front moving into areas, band of cloud rather than significant rainfall. staying dry for most of us over the weekend, temperatures back down to the high teens, to the low 20s, with a fair amount of cloud at times.

you're watching bbc news at 9:00 with me, annita mcveigh. the headlines: the baby son of a woman who was murdered in south london when she was eight months pregnant has died. police have released cctv footage of a man seen walking towards kelly fauvrelle's home before running away from the scene minutes later. obesity causes more cases of bowel, kidney, ovarian and liver cancer than smoking, according to a leading charity. up to 40 migrants have been killed by an air strike which hit a detention centre on the outskirts of tripoli, according to the un backed government in libya. video sharing app tik tok promises to make changes to it's