yeah, they were cute. hello. this is the business briefing. i'm ben bland. on the offensive, president trump launches a new assault in his trade war on china and it is tackling global markets. plus turbulent times for the owner of british airways. / fears loom and the economy loses altitude. on the markets, global shares sink on the latest trade war escalation to oil has its worst day forfour escalation to oil has its worst day for four years.

we will start with the us china trade war because president trump has announced a major escalation in us tariffs on chinese goods, saying that china has broken its promises made in negotiations. the announcement has rocked markets as we saw a moment ago, sending stocks and commodities tumbling. here is what has them so worried. resident tom says that from september one, the us will impose a 10% tariff on $300 billion worth of chinese imports that are not already subject to us taxes. this comes on top of the 25% tax already imposed on chinese goods worth $250 billion a year. but they will hit consumer goods such as electronics, toys and footwear. us business groups have been quick to condemn this

escalation. the us chamber of commerce that represents 3 million firms says it will only inflict greater pain on us business and undermine and under wise strong us otherwise strong us economy. president trump began his tweet with praise for the most recent round of negotiations, describing the talks this week in shanghai is positive and constructive. and that was before he went on to escalate the trade rift between the countries by threatening more tariffs. president xijinping, ithink threatening more tariffs. president xi jinping, i think he wants to make a deal but, frankly, he is not going fa st a deal but, frankly, he is not going fast enough to he said he would purchase from our farmers and not do that. he said he would stop sentinel coming into our country, it is all coming into our country, it is all coming out of china, and he did not do that. we are losing thousands of people to fe nta nyl. do that. we are losing thousands of people to fentanyl. they will not go into effect until september giving

time —— china time to make concessions. last year donald trump impose tariffs on about $250 billion of chinese made goods. china retaliated. but this round is likely to have a far greater impact on american consumers. the price of everything from toys to smart phones to computers is likely to rise. economists warn the uncertainty could dampen business investment while the us chamber of commerce said the move would undermine an otherwise strong us economy. the news comes one day after the head of american central bank warned of the risks of rising trade tensions to the us and to the global economy. that was michelle for us in new york. as you have been hearing, adding to concerns on asian markets is an escalation of trade tensions between two of the regions top economies. japan says it will remove south korea from a white list of

countries that enjoy easier trading terms. this move comes after south korean court rulings ordered japanese firms to compensate wartime forced labourers. japan says the issue was settled by a treaty over 50 yea rs issue was settled by a treaty over 50 years ago. it has retaliated with export controls on items that are key to south korea's technology industries. koreans have, in turn, staged protest and boycotted japanese goods. live now to mariko who is following this for us. how big an impact is this happening?m isa big an impact is this happening?m is a significant impact. us china trade war was putting a lot of pressure on asian shares and this adds extra pressure. the us did try to intervene, telling the two key allies, japan and south korea, not to escalate this but in return the japanese government chose to go ahead with it and remove south korea from its so—called white list. that

is basically japan's list of trusted trading partners that currently has 27 countries including germany, the uk and the united states. the removal of south korea will take effect on august 28 and after that japanese exporters will have to apply for clearance in order to export a wide range of goods to its neighbouring country. decision, of course, comes one month afterjapan tightened rules on the export of materials that are crucial for south korean technology manufacturers and that rattled the electronics industry globally because of potential threats to the supply chain. it feels like the attention is escalating and the ending is nowhere to be seen. in terms of the impact this has on the rest of us, how far afield because the effects of this round be felt? because the items that will be affected by this are used around the world, that is the big concern among traders and

investors and that is why we see shares here in asia are doing a lot of pressure —— under a lot of pressure. they were already under pressure. they were already under pressure after the new chinese ta riffs pressure after the new chinese tariffs were announced. the japanese market opened 2% lower. that is because with not just market opened 2% lower. that is because with notjust the us shares but the us dollar fell after the announcement against the japanese yen which is seen as a safe haven currency and that put pressure on japanese exporters and the other decay is down about 2.5%. whole compost make indexes down about the same. and across the region we are seeing shares falling sharply this friday. i would like to talk about airlines now because the owner of british airways, the international airlines group iag is due to —— report figures in 30 minutes to these are turbulent times with pilot strikes looming for ba not to mention the fallout from a huge data

breach that saw heather steele personal information of half a million passengers. all the time when the economic situation looks increasingly uncertain. with me is john grant, the executive vice president of oag aviation. john, when you look at the factors, what are the expectations around how iag asa are the expectations around how iag as a group would have performed in that half year? it will not be good. in the context of the whole industry and they are not the only ones in this situation. ryanair last week, they had a 50% pay cut. lufthansa... we are in downward circle at the moment. we have had a really good run in terms of performance from many airlines and now what we are seeing is everything conspiring against them. a lot of cost in dollars for iag and ba which has

revenue in stirling and that has devalued. anecdotally, you know, in terms of friends family colleagues, i get the sense that people are flying more, especially shorthaul, than they used to ten years ago. and yet the airlines are still facing these pressures, presumably because these pressures, presumably because the margins become so tight and the cost becomes increasingly burdensome. capacity this summer from the uk has been up by i.5%. so more and more people are travelling but the reality is we have too much capacity in the market and that means people are getting really good fa res means people are getting really good fares that are very competitive in the airlines have some cost elements they cannot control, one of which is they cannot control, one of which is the price of fuel. since the airlines have been profitable over the last three years, suddenly trade agreements and working practices are beginning to unravel from historic agreements and the unions and others

are now looking for improved terms and conditions, just as the airlines are beginning to see a downturn in business. using the natural adjustment we will see as a result, if, as you describe, the whole landscape is in a downward move across the airlines, do you think we may see roots being cut, fares going up may see roots being cut, fares going up and that sort of thing? we are in a process of consolidation. it is no coincidence that some of the most profitable airlines in the world are in north america which has gone to a significant process of consolidation in the last ten years. and we are beginning to see that happening in europe. we have iag, a big airline group and we have the lufthansa group and we have the lufthansa group and we also have the klm and air france group. we have about 200 airlines in europe and we do not need 200 airlines. we have a number of countries who have their own independent carriers who, in some cases, our state owned and really should not be in the marketplace.

when they fall away, and we have seen when they fall away, and we have seen that happen such as the belgian airline and abilene has collapsed. you would think the capacity would come out of the market but it does not. airlines put more capacity back into they take those aircraft in flight into they take those aircraft in flight under a different name. until we have more sense in the market we will always be in this position. thank you very much for that. that's brief you want some other business news. the government is planning to create up to ten free ports across the country after brexit. seaports and airports will be allowed to apply for the status that allows firms to import goods and then re—export them outside the normal tax and customs rules. we last had such zones in 2012 and the prime minister borisjohnson believes they could create dogs in left behind areas. critics say they will attract money launderers and tax dodgers

up . up next, a news briefing and we will through the newspaper headlines. global temperatures for july could be the hottest on record. that is the initial assessment of the eu's climate change service. figures show that this month will be 1.2 degrees above preindustrial levels. our science correspondent explains. it is not water they are walking through, but a heat haze on the street injapan. and it has been the street injapan. and it has been the same story across many parts of the same story across many parts of the world. record temperatures in finland. three—week heat wave in china as well. and now it is official, july is one of the

hottest, if not the hottest on record. and july is not alone. 2019 has been very warm globally. each month so far is among the four warmest for the month in question. and june has been the highest ever. this particular month has been warm to me this is not really the main point. main point is that not only this month has been warm last month was warm , this month has been warm last month was warm, all the months in 2019 we re very was warm, all the months in 2019 were very warm in terms of comparison with other years. results are based on billions of measurements from satellites, ships, aircraft and weather stations all across the world. these latest figures are part of long—term trends in rising global temperatures to the computer models of the impact of climate change predict that more summer climate change predict that more summer temperature records are likely to be broken all across the world more often. individual heat waves cannot be pinned to human created global warming. but

increased in extremes of weather that we are beginning to see is in line with the predictions made by planet change experts. they say that they are likely to get worse and more free went. —— climate change experts. for more on that story and others, breakfast is coming up at six o'clock. they will have all the days news business and sport plus the raf has been drafted into help protect whaley bridge. this is the briefing from bbc news. these are the latest headlines. the governing conservative party led by borisjohnson has suffered a major blow. the liberal democrats when in a key by—election, and that reduces his majority to just one making a key by—election, and that reduces his majority tojust one making it even harderfor the prime minister to push an ideal brexit through parliament. donald trump has said he will impose new tariffs on $300

billion worth of imports from china. the us president says that china has failed to make good on promises to purchase more us agricultural product and to stem sales of the deadly opioid sentinel. north korea's fired another short range missile from its eastern coast, the third weapons test in just over a week. the launch is seen as a reaction to the planned military exercises between south korea and the united states. those are due later in august. that's great there some other stories making headlines in the media around the world. we will start with the independent. the bank of england governor has warned that faces a one in three chance of recession even if there is an orderly brexit. manuel and the financial times, donald trump said the us replace a 10% tariff on $300 billion worth of additional chinese goods was opposite an escalation as mentioned a moment ago of the trade

while between washington and beijing and ina while between washington and beijing and in a new threat to the global economic outlook. the times leads with promising medical news reporting that a simple blood test could detect the onset of alzheimer's stop it's been developed by scientists in what has been described as a breakthrough for combating the disease. the male online looks at the criticism levelled at the tech giant google which has been labelled hypocritical, this is after reportedly more than 100 private jets were used to fly celebrities including prince harry to climate change conference in sydney sicily. —— sicily. and finally, is it closing time for being a god by a bartender? it could be for a buy in london. it's the first want to use facial recognition technology to serve people in the correct order when they approached the bar. it's funny, with friends as i was when it's their round sa oh sorry i

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