this is bbc news with the latest headlines for viewers in the uk and around the world. i'm sally bundock. president trump takes on china, ruling out further trade negotiations and ending hong kong's preferential trade status. hong kong will now be treated the same as mainland china. no special privileges, no a special economic treatment, and no export of sensitive technologies. china of sensitive technologies. says the uk has created an china says the uk has created an unfair environment for business out the ban on huawei working on the sg business out the ban on huawei working on the 56 phone network. —— after the band. jeffrey epstein‘s ex—girlfriend ghislaine maxwell cries as a new yorkjudge denies her

bail — she'll go on trial next july accused of helping him abuse young women. and coronavirus cramps celebrations. couples having to cancel hundreds of wedding guests because of restrictions on numbers. good to have you with us. president trump has driven an even bigger wedge in relations between the us and china by dismissing any resumption of trade talks and cutting hong kong's preferential trade status. mr trump also welcomed a decision by the british government to exclude the chinese company, huawei, from building the uk's 56 data networks. beijing has condemned the latest us sanctions, threatening to retaliate. our north america correspondent

peter bowes reports. the us has long been campaigning for britain and other countries to ban equipment from the chinese tech giant. the about turn follows months of pressure from washington, including tariffs. ata washington, including tariffs. at a news conference in the rose garden at the white house, ostensibly to announce actions over hong kong, donald trump let it be known that he felt vindicated. we confronted u ntrustworthy vindicated. we confronted untrustworthy chinese technology and telecom providers. we convince many countries, many countries, and idid countries, many countries, and i did this myself of the most part, not to use huawei because we think it is an unsafe security risk, it's a big security risk, it's a big security risk, it's a big security risk stop —— for the most part. the ambassador to

the uk said the decision was disappointing and wrong. huawei is unlikely to be surprised by the us response. what happens next may hinge on the result of america's presidential election in november and future actions in us—china relations. the two countries are not on speaking terms and a future trade deal is in doubt. president trump has tried to hold the country accountable for its actions over hong kong, signing an executive order. an executive order ending preferential treatment for hong kong. it will be treated the same as mainland china, no special privileges, no special treatment, no export of sensitive technologies. this news c0 nfe re nce sensitive technologies. this news conference had very much the feel of a presidential rally with the president

hitting a number of issues but repeatedly coming back to his complaints against china and also his view ofjoe biden and how he believes perhaps a joe biden may go differently in its approach to china. but with the president saying he holds china fully responsible for unleashing the virus on the world, ratcheting up the rhetoric even more. peter bowes, bbc news. so as you can see there has been an awful lot between the us and china and big businesses caught in the crosshairs. as we've been hearing, the british government has announced a major u—turn — it now aims to exclude the chinese company, huawei, from building britain's 5g data networks.

it's only six months since ministers originally agreed to give the company a limited role in the uk. the reversal of policy will please washington, but anger beijing. with me is our reporter alanna petroff. it was really interesting to hearin it was really interesting to hear in that report from peter bowes about president trump's reaction to all of this going on in the uk. can the us president take the credit for the uk's decision? president trump likes to take credit for a lot of things going on in the us and the world at large, but in this instance, he has a point. he can take some credit for the uk's decision to exclude huawei. that's because the president and his administration have been taking some very targeted moves against huawei, even in may, the administration took some very targeted moves, and that helped convince the uk that it was going to have to make this

decision. so, over a was going to have to make this decision. so, overa number of yea rs decision. so, overa number of years and many months, the trump administration has been doing this. so the fact that president trump is saying i wa nt president trump is saying i want credit for this, this is all me, there is an element of truth there. but there have been long—running security concerns about huawei operating in countries, including the uk. that obviously would have played a part in the uk decision. absolutely. i'm sure it played a part and i'm sure the bill the uk and us would be negotiating a trade deal played a part in that, too. what is china's response to all of this? you mentioned how the uk and us are working on a new free trade deal as the uk leaves the european union. that was brought up by a huawei representative, where he said i think this has a lot to do with

the uk trade concerns and trade policies and less to do with huawei's security. also, i want to bring up the tweet from the chinese ambassador in the uk, he said "disappointing and wrong decision by the uk on huawei. it has become questionable whether the uk can provide open, fair and nondiscriminatory business environments for companies from other countries." so, environments for companies from other countries. " so, from huawei and other countries, we're getting a lot of unhappiness from the decision —— huawei and china. unhappiness from the decision -- huawei and china. do you think other countries will follow the uk in terms of edging away from huawei and looking at other countries to provide 5g infrastructure? there are other countries we we re there are other countries we were looking out to get advice. canada is looking at this issue. germany could also make a decision about this, but not before the soup member ——

before the soup member —— before september. australia and new zealand army corps worked closely with the us on security issues, those countries have already in 2018 made the decision to exclude huawei from its networks. all right, alanna petroff, thank you very much for your analysis. in over 20 minutes, we will be going to oui’ minutes, we will be going to our asia business up in singapore to talk about the implications of the us cutting its preferential trade status for hong kong —— asia business hub. we will talk about that later on. the united states is experiencing record spikes in coronavirus cases as a second wave of infections sweeps the country. alabama, texas, missouri, and north carolina all reported daily increases in deaths from covid—19. florida, which has become an epicentre of the new outbreak, reported 9,000 new cases on tuesday, with the death toll

in the state now more than 4,500. and california has drastically rolled back its reopening plans and ordered all indoor restaurants, bars and cinemas nationwide, just over 63,000 new infections were recorded in the last 2a hours. ajudge in new york has denied bail for ghislaine maxwell, former girlfriend of the financier and convicted paedophile, jeffrey epstein. maxwell pleaded not guilty to charges that she groomed and helped him abuse young girls. nada tawfik was in the courtroom. after a life of luxury, this is now ghislaine maxwell's stone—cold reality, denied bail, imprisoned in solitary confinement, and heavily guarded here at the metropolitan detention center in brooklyn with her trail at least a year away. jeffrey epstein‘s alleged co—conspirator appeared remotely in court from a small white room, and pleaded not guilty. stripped of her power and privilege in a brown prison top, with her hair tied back, she sat mostly expressionless

during the more than 2—hour hearing. but the moment the judge read out the decision, ghislaine maxwell hung her head, visibly trying to absorb the news, and a few times, she used her finger to wipe under her eye. her lawyers said she was not jeffrey epstein, and had been unfairly portrayed as a monster by endless media spin. but prosecutors successfully argued that she was an extreme flight risk and was skilled at living in hiding. they say she bought her property in new hampshire under the alias ‘janet marshall‘ to conceal her identity. when fbi agents raided the estate, she ignored orders and locked herself in another room. annie farmer, one of maxwell's accusers in the indictment, phoned into the remote hearing and implored the judge to hold her detained. she said maxwell was a sexual predator who groomed and abused her, and never showed remorse for her heinous crimes. i don't think this is something that's going to be over with this year. david boies represents 12 epstein accusers, including annie farmer.

he says he's handed over evidence to prosecutors which could implicate others if introduced during the trial. prince andrew is clearly somebody who is going to come under even more scrutiny now than he did before. there's...too much evidence of their connection, both independent of epstein, and with epstein. prince andrew has denied having sex with under—age girls or being aware of epstein‘s crimes. this saga has been filled with twists, turns and disturbing revelations. ghislaine maxwell's impending trial has the potential to be even more explosive. nada tawfik, bbc news, new york. let's get some of the day's other news. the trump administration has reversed course on a plan to bar international students from american universities if they were going to be taking classes exclusively online. harvard and mit had sued the administration, saying

the decision would limit access to education. international students also provide much—needed tuition fees for american schools. the new york times newspaper is to move some staff in its hong kong bureau to the south korean capital, seoul. it said the new security law imposed by china on the territory had created uncertainty and it felt prudent to make contingency plans. the speaker of the catalan parliament has accused spain of spying on him and other pro—independence leaders. this is after an investigation found that his phone had been targeted with a spyware tool sold only to governments. the spanish government has denied the allegations, saying they had no evidence the phones in question had been targeted. satellite imagery appears to show that ethiopia has started filling the reservoir of the new $5 billion dam built on the river nile.

it comes as talks between ethiopia, egypt and sudan end with no agreement over concerns raised by downstream countries. when finished, the dam will provide electricity to over 65 million ethiopians who are currently without regular power. but egypt, which is heavily dependent on the nile for most of its fresh water, sees the project as a huge threat. sudan is also concerned it will lose out. 0ur correspondents sally nabil and kalkidan yibeltal have been speaking to people in egypt and ethiopia to find out what is really at stake. ethiopian‘s sling capital, addis ababa, is a testament to the country's economic growth in the past decade. 0ne the country's economic growth in the past decade. one of the fastest on the continent. and with that growth comes a need for more electric power. but just outside the city is a com pletely just outside the city is a completely different picture. tens of millions of ethiopians still live without access to

electricity. this is ethiopian‘s solution, the grand renasant ethiopian‘s solution, the grand renasa nt dam. after almost ethiopian‘s solution, the grand renasant dam. after almost ten yea rs of renasant dam. after almost ten years of construction, it is nearly complete. 0fficials years of construction, it is nearly complete. officials hope it will power new factories and the villages. this woman is just —— akako is one of those villages. translation: we prepare everything using firewood. we have to go to the forest to look for firewood. it's very tiresome. if we get electricity, we will be able to use a cooking and baking stove and it will be clean. we are 110w and it will be clean. we are now covered with ash, we are getting poison from smoke, we are wrapped in smoke. this man told me he believes in the dam so told me he believes in the dam so much he bought government bonds to fund the construction. he believes that small contribution will help provide much—needed electricity for the village. authorities here in ethiopian i have been

consistent over the years in saying the dam will in no way harm downstream countries like sudan and egypt. instead, they have often accused cairo of often trying to maintain arrangements from the colonial era that deny millions of ethiopians access to electricity. egypt wants ethiopia to guarantee its water supplies will not be reduced by the dam. for egyptians here, this is a matter of life and their. many farmers have been struggling in recent years with shortages of water, and farms like this one may even disappear if things get worth. —— life and death, if things get worse. not all of the farmers here have heard about the ethiopian dam, but they can't imagine losing more water in sucha can't imagine losing more water in such a dry country. the nail is egypt's lifeblood. translation: we do not have enough water, especially in summer.

enough water, especially in summer. during the day, water pumps early work because the water levels are so low. i do not know what is going to happen if we get even less water. -- barely work. egypt has accused ethiopian are unilaterally, disregarding the interests of downstream countries. —— ethiopia of acting unilaterally. time is running out for cairo. despite yea rs of running out for cairo. despite years of negotiations, many technical and legal disagreements still remain unsolved. sally nabil and kalkidan yibeltal, for bbc news. stay with us on bbc news. still to come: unmasking the benefits — we look at the effectiveness of face coverings in after months of talks and missed deadlines, a deal has been struck to keep greece within the eurozone. the immediate prospect of greece going bust

in the worst crisis to hit the eurozone has been averted. emergency services across central europe are stepping up their efforts to contain the worse floods this century. nearly 100 people have been killed. broadway is traditionally called the 'great white way' by americans, but tonight, it's completely blacked out. it's a timely reminder to all americans of the problems that the energy crisis has brought to them. leaders meet in paris for a summit on pollution, inflation and third world debt. this morning, theyjoined the revolution celebrations for a show of military might on the champs—elysees. wildlife officials in australia have been coping with a penguin problem. fairy penguins have been staggering ashore and collapsing after gorging themselves on a huge shoal of their favourite food, pilchards. some had eaten so much, they could barely stand. this is bbc news. the latest headlines:

president trump takes on china, ruling out further trade negotiations and ending hong kong's preferential trade status. china says the uk's created an unfair environment for business after the ban on huawei working on the 5g phone network. in many western countries, the debate over wearing a face mask has become mixed up with politics and ideas of freedom. injapan, wearing a mask is simply what you do to stop viruses. people have been doing it for years, long before covid—19. medical experts believe it's a habit that's helped them now. from tokyo, rupert wingfield—hayes. at shinagawa station in tokyo, it's the morning rush hour. tens of thousands are pouring from the station, heading for nearby office towers.

not a single person here is without a face mask. no—one has been ordered to wear one, but everyone does. translation: i don't think it's acceptable not to wear a mask. i think everyone in the world should do so. coronavirus is something we should take very seriously. translation: i think japanese are obedient, and listen to what other people say. that's why we wear masks. it's very japanese. the effectiveness of masks like these at protecting you from covid—19 is still hotly debated. but there is a striking difference in death rates between countries like japan, where masks are universally worn, and place where they aren't. in the united states, the current mortality rate from covid—19 is 400 per million. in the united kingdom, it is over 600 per million. here injapan, it is just seven per million. scenes like these of americans protesting against mask—wearing have left one of the world's leading public health experts

shaking his head in despair. you know, it's striking if you look at the united states, where there is almost a wilful, flagrant desire to show that, "i'm not going to do what other people are telling me to do. i'm not going to wear a mask." and it's been transformed from the idea, how do we protect each other, to i'm going to show that i'm not going to be pushed around. in japan, university experiments like these have shown clearly how wearing a mask can cut the volume of droplets ejected by a cough or a sneeze. for long—time tokyo resident james whitlow delano, there is no question where he would rather be during this pandemic. i'd rather be here. i think the japanese, generally speaking, are more civic—minded, community—minded. they care, frankly, more about their neighbours.

individualism is great. it's baked into who i am. but this is a time to set that aside for other people, and to me, mask—wearing is so important in that process. until there is a vaccine for covid—19, this is the new reality. but, if wearing masks can help protect yourself and others, it is a discomfort most japanese people appear willing to bear. rupert wingfield—hayes, bbc news, in tokyo. there's frustration in the uk about new rules on weddings that have been brought in due to coronavirus. since the beginning of this month, weddings in england can take place with up to 30 guests if the venue enables them to socially distance properly. but some communities argue large guest lists are key to their tradition and customs. sima kotecha reports.

it's just the community, culture, the way we are brought up, everybody is close and tight knit and it's important to have traditional tight knit and it's important to have traditional elements tight knit and it's important to have traditional elements of the wedding and to have eve ryo ne the wedding and to have everyone there and be part of it. this woman's engagement in september last year, their wedding was meant to be in march but then came lockdowns. we decided the safest thing to do wasjust postpone everything and it was very hard decision to make. hundreds are invited, a common feature of south asian weddings and she says their future plans are now in limbo. we don't know how many guests we can invite. unfortunately, the registry office is not open yet and i cannot book a marriage appointment, my certificate is expired from last year. the reason why weddings are small at the moment is for safety reasons, health reasons to protect your guests. why is it so important to have hundreds of people at a

south asian wedding? weddings are south asian wedding? weddings a re really south asian wedding? weddings are really important days and so are really important days and so coming together to celebrate thatis so coming together to celebrate that is part of who we. indian weddings are very big and close—knit and connected and you cannot invite some are not others, doesn't really work like that in our culture. the government says weddings in england can have no more than 30 guests. we could have invited 2000 people. but offering hospitality at a time offering hospitality at a time of celebration is integral to particular faiths and cultures. if you have been invited to weddings, from the children and grandchildren, and then you do not return the favour, it does create a bad feeling amongst the community and friends and family. and there is no belief the larger the guest list, the more good wishes for the couple and one priest told us in india it has been tradition for generations. the entire village will come, gather, watch and

witness as the ceremony was done, as the couples who were making their vows and the whole idea is that it may be there blessings and may all the people witness that. it is unclear when the government guidelines will change and ministers they safety is a priority. this couple hope that by the end of next year, they will be able to have their big, dream wedding. sima kotecha, bbc news. sport now and manchester city's successful appeal against their european ban has put pressure on the english teams vying to reach next season's champions league. chelsea look likely to claim one of those remaining spots. a 1—0 win over relegated norwich leaves them third in the table four points clear of their closest challengers manchester united and leicester, who play on thursday. it wasn't vintage asked. 0n the

ball, we were a bit off in slows that we didn't create as much as we would in the home game but i think that is the stage of the season and the nervous nature of it. i thought we we re nervous nature of it. i thought we were professional and didn't give them any chances and we got the three points but going into it i would have taken that and we will move on. porto could claim a second league title in three seasons on wednesday if they beat sporting. their nearest challengers, benfica, have taken the title race down to their final two games of the season following a 2—0 win on monday evening over vitoria guimaraes. the elusive street artist banksy has spray painted a coronavirus message for commuters on the london underground. in a video posted online under the caption, "if you don't mask, you don't get," banksy is seen on the central line tube, disguised as a professional cleaner. he can be seen asking

passengers to move away, then stencilling his trademark rats, holding a blue mask as a parachute, holding a bottle of sanitiser, and of course, wearing a mask. you are now up—to—date. hello there. if anything, tuesday is looking a little grayer than wednesday. we did manage some sunshine on tuesday, across the midlands, across parts of scotland. but this was a general picture for most of the country — that of a lot of cloud. now, we've got thicker cloud courtesy of this weather front toppling in. it's been bringing rain and drizzle through the night across northern and western areas. it continues to progress further southwards and eastwards. so, under the clear skies further south and east, it's not going to be particularly chilly. we could start with a little bit of sunshine here. but we'll have thicker cloud and rain for many areas, and as a result, it'll be a mild night, but a misty one. a lot of this low cloud will sit on the hills and around the coasts as well, hence the fact it'll be grey and damp to start for many.

that drizzly rain makes its way towards east anglia and the south—east for the afternoon, whilst tending to ease further west. we may see some brightness for northern ireland and for wales and the south—west later. and for shetland, we may hold onto some sunshine until quite late in the day. but for most, there's more cloud, still some patchy drizzle, and it'll feel a little bit cooler. there's a gentle north—westerly breeze, the exception perhaps being northern ireland — seeing temperatures just a little higher here. now, as we go through the evening and overnight, that cloud continues to thin out a little bit. so it's going to be another mild night, misty and murky again, but without those weather fronts. as they move away on thursday, it promises a better chance of seeing some brighter weather, even a little sunshine, and so that'll help to lift the temperatures. it's just the far north—west where we'll see some rain coming in on this weather front late in the day. so a better chance of some brightness on thursday. high pressure's still with us then, building through those weather fronts, weakening them all the time. but i think for scotland, and potentially northern ireland, friday will bring some more rain, and it's cooler air that follows behind. whereas there's a good chance that we'll see some decent spells of sunshine for many

other areas on friday, and that will really elevate the temperatures — 23—26 degrees celsius. now, as we go into the weekend, that weather front will progress further southwards. so it will introduce potentially more cloud, some patchy rain for northern ireland, southern scotland, northern england. brighter but cooler weather follows on behind. but we've still got that warming air further south, so the potential for something much warmer still to form across southern and eastern areas. but, during the day on wednesday, it does look potentially very cloudy for many of us. as ever, there's more on the website. this is bbc news with

the latest business headlines for viewers in the uk and around the world. the european union attempts to take a bite out of apple, with a court ruling set to determine whether the tech giant should pay $16 billion in unpaid taxes. us president donald trump ends hong kong's preferential treatment, warning the territory will now be treated the same as china.

if you have just joined if you havejustjoined us, you are very welcome. if you havejustjoined us, you are very welcome. i'm sally bundock and we are focusing on major business stories. let's start with a major court case taking place in europe today, which will be closely watched by tech giants across the world. because in a few hours time the general court of the european union will give its ruling on a deal between ireland and apple, with the european commission claiming apple breaks the rules. the commission says the incentives offered to apple counts as illegal state aid and four years ago it insisted the tech giant should pay $16 billion in back taxes. both the irish government and apple disagree and have appealed to the court. apple has had a presence in ireland since 1980, and currently employs around 6,000 people there. this has been going on for yea rs, this has been going on for years, so what will today's

decision be? we're nowjoined by dr sam fowles, who's the frsa barrister for cornerstone barristers. spillane how overlearned has attracted the likes of apple, how things have worked in the past and why the european commission is concerned? this has been a deliberate economic strategy by ireland made several decades ago to attract multinationals by offering them very low tax rates stop and this has led to a number of agreements were essentially lots and lots of american multinationals, both what you would call big attack but also other areas of this —— big tech, have located their offices in ireland and their profits in ireland and therefore paying their taxes at lower irish tax rates. we got toa lower irish tax rates. we got to a point where the eu said

well, ireland, it is fine for you to offer everyone the same low tax rate, but we start to have a problem where you are offering particular companies particular deals. and that is what we have got with apple. the eu says it is contrary to state aid rules, a set of rules which guarantee a level playing field and a free market. they basically mean companies can't give countries —— countries can't give companies special treatment. an there is a lot at sta ke treatment. an there is a lot at stake here, today? it's important to note that actually the eu has already won on the key sort of principle, the issue of principle or issue of law, which is is a sweetheart tax deal in principle, in theory, state aid? the eu courts have already decided in the starbucks case and the fiat

case that a sweet heart tax deal could be state aid. so this is mainly about the facts. the eu has to prove that in fa ct, the eu has to prove that in fact, the deal ireland had with apple offered apple a tangible benefit not available to others. so it's really a case of fa cts. others. so it's really a case of facts. as do my prediction, i think what i would predict is that everyone is going to be a little bit happy and everyone is going to be a little bit unhappy. there will be a clarification of the legal principle, i think, clarification of the legal principle, ithink, in clarification of the legal principle, i think, in this stop i would be surprised if the court came down 100% on one side or the other. ok. we will watch this case and find out in a few hours. in the meantime, doctor sam fowles, thank you for your time. thank you. and

just to say apple is that it will fight on and if you're further. this could take even more years. they are looking at $16 billion worth of back taxes they could have to pay back in time. now, let's talk some more about the growing tensions between the us and china. as you've been hearing, president donald trump has signed an order to end preferential treatment for hong kong. this means hong kong is expected to lose its special lower american tariff rate, throwing some tens of billions of dollars in annual trade between the us and the territory into doubt. let's now go to our asia business hub in singapore, where mariko 0i joins us. mariko, good to see you again. can you explain what this means for companies operating in hong kong going forward? well, sally, i think that is a big question. because the move was expected but we still don't have all the details.

businesses are still adjusting what it means for them. but no doubt as you said, it will flare up tensions between the well‘s two biggest economies, which have of course been locked in the trade war for several years locked in the trade war for several yea rs now. locked in the trade war for several years now. and china has already said that it will retaliate. mr trump used his press c0 nfe re nces retaliate. mr trump used his press conferences to outline a long list of complaints against china, he mentioned specifically hong kong, that it will now be treated the same as men and china. so especially american firms operating in hong kong, they are still trying to figure out exactly what that means. according to the latest survey by the american chief of commerce there, the overwhelming majority of american firms there have already expressed concerns about the controversial national security law, and this executive order from president trump means they can be in an even trickier position as to how their trade will be affected by us tariffs on chinese goods, as you mentioned. and already we are

starting to see some businesses starting to see some businesses starting to see some businesses starting to move out of hong kong. the last couple of hours we have learned that the new york is moving its asian new hub —— news hub to seoul, south korea. they said it won't be a mass exodus, but it shows how nervous businesses are. thank you, mariko. let's look at markets and see how they're doing in asia today. as we have a ready mentioned, there is so much going on with regards to the relationship between us and china, which is critical to global trade. and as you can see at the moment, markets are not too perturbed. hong kong down by 0.5%,japan not too perturbed. hong kong down by 0.5%, japan over 1%, australia up slightly as well. if we look at the us as well to show you how things went the night before on wall street, we have had lots of earnings from the big banks in america, jp morgan came out with news that please the market, it had says that did well, wells fargo did worse than expected, showing it

is pretty exposed to what is happening with coronavirus. its shares were sold off was not what posted trade in the us and in asia as well as newsletter covid-19 in asia as well as newsletter covid—19 vaccine, tests are going well. tests were extremely well in one case. so hopes of a vaccine are being boosted by that news. something that market traders have been watching closely as i have just mentioned, is those earnings stories coming out of the us. america's biggest banks have been influencing the news. three of them have said they have set aside almost $28 billion to cover customers defaulting on loans due to the pandemic. the banks includejp morgan, citibank and wells fargo. the firms' executives warned of a painful economic downturn ahead despite recent positive economic data. 0ur north america business correspondent michelle fleury has more. the latest set of earnings figures from three of america's biggest banks paints a grim

picture. but the worst is yet to come. superpower, they have set aside tens of of dollars in anticipation of a wave of defaults. jpmorgan, wells fargo and citibank are expecting customers to be unable to repay their loans. jpmorgan believes unemployment will be in double digits well into next year. this increase in the money they are setting aside comes as coronavirus cases are increasing and as reopening plans are being shelved. it also signals their increasingly unique outlook, at odds with the president, that the economic shock will be deeper and last longer than previously thought. that is michelle fleury, we will now take you to india, where there will be some important trade talks taking place today. discussions between the country's prime minister, narendra modi, and officials from the european union will be held through a virtual meeting

to see if any progress can be made on a free trade agreement. joining us now from mumbai is our india business correspondent nikhil inamdar. nikhil inamdar, just tell us how important a trade deal is between the two? well, sally, i being this one is particularly important, this set of talks. -- i think. important, this set of talks. —— i think. if you have seen the india— china trade relationship after those skirmishes, there is recognition india needs today there is a fire its source markets —— needs to diversify. so it has been exporting goods and services but there is recognition perhaps in the european union that dependencies on china need to be reduced in this post covid-19 be reduced in this post covid—19 environment and also there is the added dimension

that vietnam has recently ratified its sta of trade agreements with the european union, which is detrimental to india's interests in terms of how competitive its goods can be in the european union. so certainly, india is looking west, so to speak right now, and it will be crucial to see what comes out of these talks that begin later today. and what are the chances of a deal being done, do you think? i presume there are hurdles in the way? absolutely. you know, there have been various hurdles. these talks were stalled since 2013 over a number of sticking points ranging from a lack of consensus on all sorts of goods —— what sorts of goods would get free market access. but india's imposition of duties on things like automobiles, visas and immigration issues as well have seen the eu to recognise

india, but also why these talks haven't gone anywhere in the last few years. we saw optimism in the trade minister saying he would be pleased hoping for an early harvest agreement with the european union, which would bea the european union, which would be a precursor of swords to a preferential agreement and then an fta. so certainly there is optimism, and if we could get even halfway there, that would be good news. nikhil inamdar, thank you. let's get some of the day's other business stories. a £4 billion cut in value added tax has come into force in the uk, allowing firms to slash their prices. starbucks and mcdonald's are the latest firms to promise reductions after the chancellor ordered a temporary vat cut from 20% to 5%. the vat reduction will stay until january 12 next year. police in majorca, ibiza and menorca will start dishing out on—the—spot fines of 100

euros from july 20 to any tourist caught not wearing a face mask. under new rules, face covering must be worn at all times outdoors, except on on the beach or in swimming pools. direct flights from the uk to greece resume today, which will provide a timely boost for the greek economy. tourism is one of the country's main sectors. last year, alone the country welcomed 33 million visitors. however, a recent spike of infections has left the country's government considering a second lockdown. joining us now from santorini is dimitris tryfonopoulos who's the current chief executive of desiterra sa ntorini and former general secretary of greek national tourism 0rganisation. it certainly looks gorgeous where you are, i am sure many brits will want to get on a plane. the question is, though, will they? how are you luring them to greece? we're happy.

first of all, good morning from santorini. what are the risks? we are very happy once again we can welcome our british visitors for one more year. it's very important for us. actually, the connection between these two countries is not just tourism. it between these two countries is notjust tourism. it is actually the connection made over many yea rs. actually the connection made over many years. british people have been coming here for 30—110 yea rs have been coming here for 30—110 years for holidays in greece. this is very important for us also, since tourism is the most important sector, financial sector, of the country. are you not worried about importing coronavirus? aren't you worried as you open your borders, you roll out the red carpet, you are going to be bringing in the virus? first of all, we're talking about the covid—free zone country. greece handled

the global pandemic exceptionally well. hospitals, doctors, the citizens, everybody acted in a very efficient and very good way, and we handled this situation a pandemic very well. probably one of the benchmarks on a global level. so actually, we opened the country very carefully, day by day, and we are very secure carefully, day by day, and we are very secure that the scientists along with the government will handle the situation very, very well. and of course we can never stay in a lockdown forever. so we started by june 13, a lockdown forever. so we started byjune13, having our first visitors and right now today we celebrate the opening of the airports of the country. we are very happy for this. how have businesses been supported while they have not had tourists there? day by day,

we gradually take back our visitors, and this is very important. of course it is not an ordinary year. it is very correct that the last ten years one after the other we have record yea rs, one after the other we have record years, in terms of passengers and in terms of revenue. greece is one of the most important tourism markets in the world, given a great value for money tourism project that all the business of the globe, they appreciate what we offer them. the most important is that this year we offer them something more important, safe holidays. as we say in greece, first health. so we are happy, but at the same time, we don't have the number of the travellers that were used to have the previous years. the travellers, day by day, they

are going to take back their confidence to the airlines, the confidence to the airlines, the confidence to the tourism destinations, and in greece they can have the vacation time, especially this year which is very important, even more important than previous yea rs. more important than previous years. we have to leave it there. but thank you for talking to us this morning live from santorini. doesn't it look lovely? are you tempted to get on a plane. stay with us on bbc news. still to come, money really does grow on trees: the us town using its own wooden currency to stimulate spending after lockdown. after months of talks and missed deadlines, a deal has been struck to keep greece within the eurozone. the immediate prospect of greece going bust in the worst crisis to hit the eurozone has been averted. emergency services across central europe are stepping up their efforts to contain

the worse floods this century. nearly 100 people have been killed. broadway is traditionally called the 'great white way' by americans, but tonight, it's completely blacked out. it's a timely reminder to all americans of the problems that the energy crisis has brought to them. leaders meet in paris for a summit on pollution, inflation and third world debt. this morning, theyjoined the revolution celebrations for a show of military might on the champs—elysees. wildlife officials in australia have been coping with a penguin problem. fairy penguins have been staggering ashore and collapsing after gorging themselves on a huge shoal of their favourite food, pilchards. some had eaten so much, they could barely stand. this is bbc news. the latest headlines: we will now focus on the troubled airline virgin

atlantic. it has finalised a rescue deal worth £1.2 billion that should protect thousands of jobs. sir richard branson's virgin group will inject £200 million with additional funds provided by investors and creditors. virgin atlantic is cutting 3,500 staff, but the airline said the remaining 6,500 jobs should be secure. we're now joined by david madden, who's the chief market analyst at cmc. good morning, david. the question now is, is virgin atla ntic safe question now is, is virgin atlantic safe from collapse? question now is, is virgin atlantic safe from collapse ?|j think atlantic safe from collapse?” think it is safe from collapse at least in the medium term. this vital financing will ensure its continuation for at least five years and virgin group, virgin atlantic, rather, believe they will return to profitability in 2022. so this is crucial in bridging finance if you will to ride out the

turbulence, pardon the pun, over the next couple of years. if their prediction is correct and they do return to profitability in 2022 and beyond, hopefully they can put the creditors or any to take a deferral on payment, put the nerve at ease. interesting virgin atlantic didn't get any government support, whereas many airlines in europe and elsewhere have had aid from governments. that is true. it is also worth pointing out that sir richard branson sold off a 20% stake in virgin galactic, raising $500 million with each he injected £200 million into the group. it is possible that the group. it is possible that the british government took a view that sir richard, the celebrity billionaire, maybe he is asking for cash upfront rather than actually sourcing

at other aspects of finance. it was worth pointing up the british government made it very clear that they would be open toa clear that they would be open to a financing deal in a last resort, but clearly, and luckily, it hasn't come to that. all right. thank you, david. good to talk to you. so virgin atlantic out of hot water for now. as a result of coronavirus, the job market is pretty tough right now. however, in recent years, personal videos have become more common as part of the recruitment process. now, a start—up called slync wants to make self—made videos the very first thing employers look at when they are deciding who to hire. but is video as fair as the old—fashioned cv? dougal shaw reports. polishing up the cv and the job interview. two things many of us interview. two things many of us dread when it comes to jobhunting. so would you rather sell yourself in a pre—recorded video like this? i can add value to a company through my interpersonal skills and my ability to work under pressure.

a start—up ability to work under pressure. astart—up in ability to work under pressure. a start—up in london has graded an app to allowjob hunters to upload videos of themselves for free onto a platform where employers can browse and shortlist candidates. it is called slink and the brainchild of his husband—and—wife team. it is still very traditional, all about paper cvs. we wanted to create something for the generation. i have about a hundred different hobbies... generation. i have about a hundred different hobbies. . .m may seem like a natural modern twist onjobhunting, may seem like a natural modern twist on jobhunting, but while eve ryo ne twist on jobhunting, but while everyone is comfortable making videos, there are potential drawbacks. big issue is discrimination, and with a video you can see skin colour and he otherwise someone speaks. how does your platform deal with that? if an employer is making a judgement, it is up to the company team to ensure the diversity is fair within the diversity is fair within the organisation. i love working on projects, giving them the time and care they need. many employers now ask for that in the recruitment process. in an increasingly

competitive job market, maybe video is another skill candidates will have to brush up candidates will have to brush up on. dougal shaw, bbc news. for many places, the economic impact of the lockdown has been devastating. businesses were forced to close down and some never reopened. in one town in the american state of washington, they're looking back to the great depression for inspiration on how to boost their economy. and the answer may grow on trees. the bbc‘s tim allman explains. tenino, washington, is the very epitome of small—town usa, but it's been more like a ghost town since the pandemic began. empty streets, store fronts closed, the local economy grinding to a halt. so the town's mayor decided to issue his own currency, made from thin planks of wood, using this old victorian printing press to try and stimulate a little growth. from small acorns grow mighty oaks. it seems to be a point of pride, the reaction that

i've seen, because it is tied to our history and because, as americans, we take pride in being independent and taking care of things ourselves. inspiration came from the great depression when local officials first printed wooden currency. each resident who needs it is given $300 per month, which they can use in local shops and restaurants. we basically treat it like cash. obviously, there are restrictions that apply to it — you cannot buy tobacco, liquor, lottery, that kind of stuff, but any other kind of actual goods, it works like cash. tenino, or covid, dollars are only good within the limits of the town, although this unusual currency is also helping to attract a few tourists. wooden money is unlikely to be a long—term solution but it's a start. tim allman, bbc news. you are now up—to—date on all

the stories, including the latest business headlines. thank you so much for your company and have a good day. i will see you soon. hello there. if anything, tuesday is looking a little greyer than wednesday. we did manage some sunshine on tuesday across the midlands, across parts of scotland. but this was a general picture for most of the country — that of a lot of cloud. now, we've got thicker cloud courtesy of this weather front toppling in. it's been bringing rain and drizzle through the night across northern and western areas. it continues to progress further southwards and eastwards. so, under the clear skies further south and east, it's not going to be particularly chilly. we could start with a little bit of sunshine here. but we'll have thicker cloud and rain for many areas, and as a result, it'll be a mild night, but a misty one. a lot of this low cloud will sit on the hills and around the coasts as well, hence the fact it'll be grey and damp to start for many. that drizzly rain makes its way towards east anglia

and the south—east for the afternoon, whilst tending to ease further west. we may see some brightness for northern ireland and for wales and the south—west later. and for shetland, we may hold onto some sunshine until quite late in the day. but for most, there's more cloud, still some patchy drizzle, and it'll feel a little bit cooler. there's a gentle north—westerly breeze, the exception perhaps being northern ireland — seeing temperatures just a little higher here. now, as we go through the evening and overnight, that cloud continues to thin out a little bit. so it's going to be another mild night, misty and murky again, but without those weather fronts. as they move away on thursday, it promises a better chance of seeing some brighter weather, even a little sunshine, and so that'll help to lift the temperatures. it's just the far north—west where we'll see some rain coming in on this weather front late in the day. so a better chance of some brightness on thursday. high pressure's still with us then, building through those weather fronts, weakening them all the time. but i think for scotland, and potentially northern ireland, friday will bring some more rain, and it's cooler air that follows behind. whereas there's a good chance that we'll see some decent

spells of sunshine for many other areas on friday, and that will really elevate the temperatures — 23—26 degrees celsius. now, as we go into the weekend, that weather front will progress further southwards. so it will introduce potentially more cloud, some patchy rain for northern ireland, southern scotland, northern england. brighter but cooler weather follows on behind. but we've still got that warming air further south, so the potential for something much warmer still to form across southern and eastern areas. but during the day on wednesday, it does look potentially very cloudy for many of us. as ever, there's more on the website.

good morning. welcome to breakfast with dan walker and naga munchetty. 0ur headlines today: vat is cut for meals, visitor attractions and accommodation from today, to encourage people to head out and try to help protect jobs. the tax is dropping from 20% to just 5%. i'll have a look at whether businesses will keep the savings themselves, or pass them on to customers. scotland's most significant easing of coronavirus restrictions since lockdown began. hairdressers, restaurants, tourist attractions and places of worship are allowed to reopen. stricter measures are introduced in parts of lancashire after a spike