police used teargas to clear hundreds of people from a main road in the city. hong kong's leader carrie lam has warned that the city is on the verge of a very dangerous situation and the principal of one country, two systems is under threat. north korea has conducted its fourth weapons test in two weeks. reports say it's fired two unidentified projectiles into the sea. and this story is trending on bbc.com: a male prisoner in brazil was caught impersonating his teenage daughter in a bid to get out ofjail. his elaborate disguise involved a wig, a pink t—shirt and a silicone mask, but the authorities say his nervousness gave him away. that's all. stay with bbc news. and the top story in the uk: a man's been arrested

on suspicion of the murder of an 89—year—old woman in north london. dorothy woolmer was found dead at her home in tottenham. now on bbc news, live to singapore for asia business report. the us dollar falling and the us dollarfalling and gold prices rising. overnight, us stocks tumble as investors react to china's move on the yuan. is the trade war turning into a currency war? in hong kong, we assessed the damage to the economy as protests spread more widely throughout the financial hub. hello and welcome to asia business report, i'm sharanjit leyl. the us treasury has formally labelled china a currency manipulator and its accusing beijing of weakening its

currency, the yuan, as the trade war escalates. as a result of the move, treasury secretary steve mnuchin will engage the imf to eliminate what it calls unfair competitive advantages created by china's actions. on monday, china allowed its currency to full to the weakest levels against the dollar in about a decade, following this twitter outburst from donald trump. let's look at the impact on markets in asia, which are kicking off trading on tuesday. state falls for the nikkei 225 injapan, essentially due to the fact the japanese yen is so due to the fact the japanese yen is so strong. it is seen as a safe haven but it really impacts japan's exporters, so huge losses there and australian markets lower. they're taking their cues from wall street, where, of course, we know the dollar is trading lower. gold prices

spiking to another six year high essentially due to the fact that gold is seen as another safe haven, like the japanese yen. those asian markets taking their cu es those asian markets taking their cues from wall street. it suffered its worst session of the year. we know china's move we've been telling you about sent its currency below the psychological seven yuan per dollar mark and that sent all of these markets tumbling. let's see what samira hussain said from wall street. it's clear investors here on wall street were spooked by china's move to devalue its currency. us financial markets had its worst day in all of 2019. investors interpreted the move as an escalation of the trade war tween the united states and china. that said, the dramatic response by investors could also be explained by other things that are happening within the us economy. trade tensions have exacerbated the

concern over weakening corporate profits for all of 2019. it has exacerbated the fed not taking an aggressive enough approach. and then now, with additional tariffs being thrown on by the us and then the chinese responding with the weakening of their currency, i think all of that together has caused investors to say i'm going to sell first and ask questions later. so what now? it's possible us financial markets may experience a p0p: financial markets may experience a pop, something that can sometimes happen after these kinds of dramatic falls. but it's also possible we may see even further declines, especially if there's any sort of in the trade war by either china or the us. that said, it's in the interests of both countries to find a resolution. samira hussain there with the latest on wall street. more now on the trade war and tensions are also rising between japan and south korea over smart

phones. tokyo has imposed restrictions on the export of chemicals used by south korea in the production of semiconductors and mobile display screens. fears are growing the move could hurt sales of smartphones. the industry is of course facing a slowdown across the world. earlier i spoke to a technology analyst from itc explained the impact of the tensions. when you look at the overall markets, we are all interconnected. whether it's a market injapan, china or korea, everything is interconnected. it's a very complex supply chain and these materials that make lcd panels or the materials that go into packaging for memory components, if you can't get that material, it starts to delay the... there is a ripple effect you start seeing across the supply chain. if the memory companies in korea can't get the materials they need, they can't get the chips to go

into the smart phones and the pcs and the data centres. that's when you see the ripple effect. if it gets... if it gets worse then you could see it end up in the end customer, where they won't get the products they want to sell for the holiday season. itc's holiday season. itc‘s mario mirallas. a strike involving thousands of workers at heathrow airport, planned for tuesday, has been called off. workers plans to walk out in a row over wages. the unite union and the airport have reached a deal over pay for support staff. heathrow said the two—day strike later this month is scheduled to go ahead. over to hong kong, where police have arrested more than 80 people after the third consecutive day of protests. monday's demonstrations disrupted train services and led to many flight cancellations at the hong kong international airport, which has also closed a runway. hong kong's leader carrie lam has

promised to restore law and. for more i'm joined by mariko oi, who's been monitoring the whole situation from the city —— law and order. tell us about the scale of disruption we saw on monday. we expect it to continue today. what's been the impact on business? well, sharanjit, as you mentioned, yesterday we saw major disruptions to train operators and airlines, but it appears things will go back to normal this tuesday. we spoke to the union that was behind the strike yesterday and they told us that some 350,000 people participated, but they are going back to work today. things are returning to normal as well at the park where thousands gathered yesterday. a stark contrast from what we saw yesterday, as you can see, on the front page of the south china morning post. this entire newspaper addition was

dedicated to the incidents yesterday. they went ahead despite the government passed possibly that this was bad for the economy. we heard from the financial secretary of the city that economic growth for this quarter would turn negative if this quarter would turn negative if this continues, and many private economists are starting to agree that they wouldn't be surprised if hong kong fell into what's known as a technical recession, two consecutive quarters of economic contractions, and the stock market fell sharply to .8% yesterday, hitting the lowest level since january. apologies, the lawnmower is about to clean here! —— 2.8%. will monitor the hands saying, which opens later. thanks, mariko oi! hong kong's chief executive carrie lam said the protests are damaging to the economy, so what's the risk? trade makes up more than 20% of hong

kong's economy and exports and imports were both down injune but that was largely down to tensions between the us and china. tourism makes up around 5% of the hong kong economy and apart from the flight cancellations we talked about, it's estimated hotel occupancy could drop by 40% this month. the realfear estimated hotel occupancy could drop by 40% this month. the real fear is that it will spruik investors and damage the status of hong kong as a globalfinancial damage the status of hong kong as a global financial sector. the financial services sector makes up about 18% of the economy. a financial expert said how the protests will affect the economy. you only need to look at the stock market because it's a pretty good barometer of how people feel about what will happen in hong kong in the future and i go by the four acronyms, sharanjit, and that is its trading, tourism, finance and logistics. they are the four main pillars for hong kong, and at the moment trading isn't particularly

good, tourism has been dented, the financial sector has been hurt and logistics have been damaged by the trade dispute between america and china. those four main pillars are weakening, and as they do, so too will the economy. and that won't be good at all for the territory. so quickly, david, how do you see this all ending, if at all? i'm hoping that everything will end around september time when the students... the beginning of all of this, when they go back to university, i'm hoping things will quieten down a bit. david speaking to me in london. now, around a500 tesco staff are to lose theirjobs. the uk's largest supermarket chain said the cuts will help to serve shoppers better and run the business more sustainably. the retailer put the decision down to what it called an increasingly challenging and competitive environment.

well, let's check out how challenging the markets look right now, because as you can see, as i mentioned at the start of the programme, they are all lower and the nikkei 225 has made steep falls at the open. it's not been at this level since january, reacting to the falls we saw on wall street, which saw its worst day this year. i should mention the nikkei is sliding because the japanese yen is seen as a safe haven, as is gold, both are rising and that of course impacts japanese exporters. as i mentioned, this is how wall street performed. that's it for the showstopping thanks for watching. —— that's it for the show. thanks for watching. two 2 for the show. thanks for watching. two22 this is bbc news. the top stories this hour: protests in hong kong have continued as its leader gives a warning that the principle of one country, two systems is under threat. north korea conducts its fourth

weapons test in two weeks. reports say it's fired two unidentified projectiles into the sea. derbyshire fire and rescue service says it will take at least another day to pump enough water from a reservoir above the town of whaley bridge to help stabilise a dam which is in danger of bursting and flooding the area. people have spent a fifth day out of their homes because of the partial collapse of the dam wall during torrential rain. danny savage reports. toddbrook reservoir is looking better by the day. the water level is going down by about two metres every 2a hours. below it, every road and footpath is still taped up, showing where no residents should be. but in here are a handful of people who refuse to leave their homes, a decision strongly criticised by police. one of them is mike friel. i know i could get out of here quick enough and get to higher ground. i'm in the town, but i'm on a slight hill and i know in a couple of minutes, i could get up

the hill even higher. people don't seem to have realised that this was life—threatening. margot is one of those who's listened to the advice and moved out. she is frustrated that some people have refused to go. it's a selfish move, and it's implying that they know more than the environment agency, the engineers who are working here, and they don't. the aim, of course, is to get everybody back into their homes behind these lines as soon as possible. but talking to officials here, what they don't want to do is let people return and then find a reason to have to move them out again. the emergency‘s not over yet, not until the specialists tell us the dam is safe, which is why we keep pumping water out. but i have to say, thursday night, i had very little sleep because i was expecting a failure of that dam wall. it was in a critical position. the labour leaderjeremy corbyn visited today. he expressed sympathy to residents and called for an enquiry. there's still a lot of work

being done, but if things continue at this pace, the waters should be down to a safe level by tomorrow. danny savage, bbc news, whaley bridge. updates on that situation on the website, bbc .co .uk/ news. you can reach me and most of the team on social media. you can find me there @benmbland. mike is here in 15 minutes with the rest of the news. now on bbc news, sport today. hello, this is sport today, live from the bbc sport centre. coming up on this programme: nathan lyon takes six wickets on the final day as australia thrash england by 251 runs to win the first ashes test at edgbaston. iranians zob ahan lose

their unbeaten record as they go down to al—ittihad of saudi arabia in the first leg of their last 16 asian champions league clash. and manchester united confirm harry maguire's world record move to old trafford with the premier league season just days away from kicking off. hello and welcome to the programme where we start with the news that australia's cricketers have thrashed england in the first ashes test in birmingham to go 1—0 up in the 5—match series. the home side failed to bat out the final day in order to salvage a draw. chasing an improbable 398 to win, england were bowled out forjust1a6. nathan lyon took 6 for 39, and pat cummins afor 32, as australia won by 251 runs. from edgbaston our sports correspondent, joe wilson reports. sunshine and special offers, £5 for children. the final day of the first test match was a chance

to show batting defiance, defence build—up