paying no income tax is now at a record high — 43% of the adult population. by contrast, the top 1% of earners pay 27% of the country's income tax. and, finally, the guardian is one of a few papers carrying allegations by the uk consumers association that facebook is failing to take effective action against floods of fake reviews on its pages. it apparently found 3,500 generated in just a single day. iam happy i am happy to say we have priya with us. she is the founder of century tech, an education technology company. great an education technology company. to see you agaii financial great to see you again. the financial times is focusing on this trade war escalation. since this was

printed, washington has named china a currency manipulator, which president trump promised he would do on day one in office which he hasn't done until now. they have had many opportunities to do that, but the statement they have come outwith. we have been talking about this trade war the tariffs and what is going on with china and the us, but it is now alleged that baiting has unleashed their most potent weapon, which is weakening their currency, and it has the impact of an unfair advantage to chinese exporters. the us is saying this is unfair, they claim it is a currency manipulation. it happen in 2008, the last financial crisis, the chinese currency weakened. it went past the cracking seven and it is about seven to $1. it does come with potential of biting the chinese back. it makes

purchasing us goods for chinese consumers much more expensive, global oil is priced in dollars and any chinese companies, borrowers of dollars at the moment will find is very difficult to cope with. the ta riffs very difficult to cope with. the tariffs on chinese goods going into the us, that is less effective if the us, that is less effective if the chinese currency is much away are —— weaker. it is interesting the fa ct are —— weaker. it is interesting the fact they have named china a currency manipulator. normally in that situation when a currency is named that, they face tariffs on their goods and various sanctions, actually, president trump has done all that. exactly. if they say they will slap a 25% tariffs on these goods but if your currency is devalued another 10% and it has a 1596 devalued another 10% and it has a 15% impact, potentially your chinese exporters and manufacturers. the issue the us will have is by escalating is against the international monetary fund, the currency many relation have a legal

definition that countries need to spend 2% of its gross domestic product over a period of 12 months and it will be difficult to show that because that is not what china has done. they have come up with a statement and it is the first time they have done that since the clinton administration. this follows through on friday when president trump was saying actually he could impose further tariffs on chinese goods but then actually on the weekend he tweeted things are going well in terms of talks and then monday we saw they lost quite a bit of value. it is a real tug of war. people have to remember that what has is done to american farmers? the people that trump says, what about america first? these soybean products they produce, china is a huge market. it has hugely affected them. what he has to take into account is that the more he gets into this and it escalates, how will this affect the people actually for him? he has real action soon. there

are him? he has real action soon. there a re lots of him? he has real action soon. there are lots of moving parts. we will talk about it again next time. this isa talk about it again next time. this is a story that we didn't expect to talk about today. the move on the pa rt talk about today. the move on the part of the relatively newly re—elected government of prime minister modi to remove the special status of jammu and minister modi to remove the special status ofjammu and kashmir. which is extremely politically sensitive, pakistan has already reacted as we mentioned. business down and looking at the pros and cons. the business standard article is very much talking about the differences in view within the indian government itself. it is about india, and it is a huge issue. they have gone to war over this several times. no—one has really, i can't see anyone, no—one has asked the kashmiris what they think about this. modi was re—elected with a really, really strong mandate in april. a part of

his manifesto was the fact that we should look at article 370 and the specific laws in that. that gives cashmere its special status. here we said we will relook at this and actually cashmere should be under the same rules as the rest of india. it is surprising to me that this has just happened, it is all over the news. they will revoke all of 370, proof to —— kashmir should lose a special status. india should ensure there is an essential development in proto—. it means kashmir has been able to make its own laws, they have rules on citizenship and they have laws on land ownership. by revoking article 370, it means indians can buy land in kashmir. it talks about this article and says this is now i'm shackling the region and it could lead to a wave of development. and that is the real worry in proto—, isn't it? and that is the real worry in proto-, isn't it? that is the worry, andi proto-, isn't it? that is the worry, and i wonder if it isjust proto-, isn't it? that is the worry, and i wonder if it is just about that? is this the reason? kashmir

has been hotly disputed since independence and it has been a co nsta nt independence and it has been a constant battle of india versus pakistan. is this just president modi coming out and saying this is what i promised, it is a diversion? the state of the economy, what is this? what we do know is it will escalate things and pakistan will not take this lightly. u nfortu nately, not take this lightly. unfortunately, i feel there is enough tension in the world but this will create a lot more. let's move onto the daily telegraph. brussels is expecting a no deal. this is off the back of stephen barclay, the brexit secretary and various others talking to officials in brussels yesterday. it would seem they are all thinking we are headed for a no deal on october 31. interesting it is on the front of the daily telegraph. alpine minister a former economist and the big question here is, yes, the eu expect a no deal. everyone has said, it is a glove or

is it? —— bluff. at number 10 they say they are absolutely serious. number 10 says they want to reengage in negotiations, they will bring energy, new positive attitude. but it is clear it would seem the prime minister wants the removal of the irish backstop and brussels is saying, we can't move on that whatsoever. the aim is to be the area where this judgement there is an impact. but having said that, some of the criticism for the former prime minister with the were not strong enough in terms of opposition, and if we go to go to negotiation, the general rule of thumb is you go in really strong, and so, yes, he is saying all of that, but many things can happen now because i think this is the drama that hasn't ended, it is just about to start. what is going to happen in september, it is potentially a vote

of no—confidence, boris johnson refusing to resign even if a vote of no confidence is held. is this parliament trying to prevent a no deal? that is what is happening, it is still incredibly divided, absolutely so we don't know what will happen. he is saying, no, we will happen. he is saying, no, we will come in and potentially enter a new trade deal but we will get all oui’ new trade deal but we will get all our special advisers lined up, get them all into the office at 7:55am and get ready for a no deal. so the block takes the new —— the uk really seriously and then we see what happens. the irish backstop was a big issue. who will blink first? in the meantime, just below the big article about brexit, a story about record numbers now paying no income tax. this is from the institute of fiscal studies. there later dated — the latest data showing it is a real worry when you think about the spending of our new prime minister. he is sorting out policing in hospitals, the nhs. if we are not

getting more money coming from taxes, where will it come from? exactly. this is about any policy that they make. this is specifically directed at brexit and the fact... i looked at the numbers 310,000 people out of a population of 5a million people, 310,000 are the top 1%. they are paying almost a third of income tax. that goes to the treasury. you are right to say what about our spending plans, we are overspending? they are talking about money going into extra hospitals, absolutely well needed but who will pay for it? let's not threaten the top 1%. 0bviously let's not threaten the top 1%. obviously it is on the front page, so obviously it is on the front page, so there is the view of the raiders. it is all about which policies come next and don't get rid of our 1%. spotted on facebook. we have to do that another day. thank you for your company. goodbye.

hello. if you're in search of dry, settled, summer weather, well, i'm afraid you probably won't find it in this weather forecast. certainly not while low pressure is in charge, and that is what we have in the heart of this swirl of cloud that you can see on our earlier satellite picture. this area of low pressure is going to drift its way eastwards across the british isles over the next couple of days. it will provide some very heavy, thundery downpours. there will always be some spells of sunshine in between. so, many eastern parts of england and eastern scotland starting the day dry, but the showers already in the west will swing their way eastwards as the day wears on. some of them will be heavy, some of them will be thundery, there could even be some localised disruption. you can see in between the showers, though, some spells of sunshine. it will be quite breezy in the south, light winds in the north, so across scotland, these showers will be pretty slow—moving. some locations could get a real deluge and temperatures ranging from 17 degrees in

stornoway to 23 in london. now, as we go through tuesday evening, many of the showers will fade, but some will continue through the night, particularly across western and northern areas and some of those showers could still be heavy and thundery. temperatures generally between 11 and 1a degrees, it may getjust a bit cooler than that across some parts of northern england and scotland, where the skies are clear and the winds are light. so, we go into wednesday and, really, it's a game of spot the difference. again, there will be some of these heavy downpours, most plentiful and heaviest across scotland where there could be some hail and thunder mixed in. not as many showers down towards the south and those temperatures again between 17 and 23 degrees. now, if you are looking for a drier day, thursday may fit the bill because our area of low pressure will start to drift away and you can just about make out this little bump in the isobars here. that's a ridge of high pressure trying to take charge of our weather. so, on thursday, there will be more in the way of dry weather and some spells of sunshine.

still the potential for one or two showers, particularly through scotland and northern england. temperatures, well, just a touch higher. the winds light as well, butjust behind me, down to the south—west, you can see some wet weather gathering. that is the start of another very unsettled spell to take us into the weekend. bands of rain driving northwards during friday and this area of low pressure taking up residence by saturday, bringing some showers or even some longer spells of rain. some unusually brisk winds as well, so if you have plans for the weekend, it's worth staying tuned to the forecast.

good morning. welcome to breakfast with louise minchin and dan walker. 0ur headlines today: the moment a british airways flight filled with smoke 10 minutes before landing. 0ne passenger compares it to a horror film. a teenager is charged with attempted murder after a 6—year—old boy was allegedly thrown from viewing platform of the tate modern art gallery. eu officials say they currently have no reason to hold any further brexit talks with the uk. england's batsmen crumble. australia rip through england's batting line—up to take a 1—0 lead in the ashes. ‘s