we understand that spacex's because we understand that spacex's starship —— starship, the world's biggest rocket, hasjust starship —— starship, the world's biggest rocket, has just exploded during the test flight and crashed into the sea. we will bring you more on that here on bbc news. the very latest from boca chica in texas were here we have been reporting on the biggest ever rocket to launch into space. the take—off was successful, we could see that, but the news coming into us now is that the first under crude test flight of the world's biggest rocket has now exploded, we understand, and it has crashed into the sea. so spacex are saying that it was a success in actually getting the rocket and the booster off the ground in the first place because there was only a 50—50 chance that would be successful, and they said at the time that anything more than that would be icing on the cake, but this will be disappointing to some people, but it has now

actually exploded and crashed into the sea. that is the very latest we have for you. we have been closely following. although the rocket successfully launched and we can see that again now, it made it into the air, but the booster rocket appeared to fail to separate. so this saw the launch end, there was an explosion when the rocket was quite high up in the atmosphere and spacex have just said that starship is experienced a rapid and spacex havejust said said that starship is experienced a rapid and spacex have just said that starship has experienced a rapid unscheduled disassembly, before stage separation. so although the rocket successfully launched and made it into air, it was the booster rocket that appeared to have failed to separate. so this has seen the launch and is an explosion high up in the atmosphere, spacex saying they experienced a rapid unscheduled disassembly before a stage separation. so we will hear more from the team of spacex coming up, many on that team saying it was a success because they manage to get the rocket into the atmosphere and

the rocket into the atmosphere and the take—off was successful, the launch was successful, but we'll wait and bring you the very latest from spacex when we get it. for now, though, it is time to catch up with all the business news with world business report. the trade war between washington and beijing rumbles on, as the us finds seagate, —— finds seagate $300 million for sanctions placed on huawei. and opening the taps... pakistan has seen its first order for discounted russian crude oil, despite russian sanctions. hello and welcome along. this is world business report. i am ben thompson and we are going to start with that news of the ongoing trade war between the us and

china. washington has now slapped a heavy fine on an american firm for continuing to trade with the chinese giant huawei. while the tech firm seagate technology has been fined $300 million by authorities for supplying huawei with over 7 million hard drives. doing so violates us sanctions. in total seagate shipped over $1 billion worth of goods from huawei that sanctions were put in backin huawei that sanctions were put in back in 2020, though sections relating to concerns over security. that speak to samira hussain, r north american business correspondence. explain what has been going on here because we know this trade war between the us and china has been rumbling on, the us is saying they have had enough? exactly, the united states has long believed that huawei, if they are supplying any kind of technology to chinese firms, could open the united states up to these kinds of technology being used for nefarious purposes and they have really been trying to crack down on any american

technology going to chinese firms. now, what is interesting about seagate is that in fact, the company didn't make any efforts to try to hide what was happening. they did maintain this relationship quite openly and of course seagate are saying, look, we were not trying to violate any rules or any trade restrictions. we thought we were handling it correctly, but clearly they were not and now you see this fine by the commerce department, the heaviest you had ever seen from this particular department for violating these kinds of trade rules. yes. these kinds of trade rules. yes, interesting- _ these kinds of trade rules. yes, interesting. samira _ these kinds of trade rules. yes, interesting. samira hussain, i these kinds of trade rules. yes, interesting. samira hussain, like they're from new york, thank you for bringing us up to date. we will stay in the us because the world's largest economy was rocked just two months ago by a banking crisis after the collapse of silicon valley bank. that caused shock waves by in the us and around the world. with results out last week, banks including

citibank and others have been able to shrug off this crisis, so a big question, we we on track in the wider us economy? now lets get few forts of the president of pacer etf, he has got $20 billion worth of assets under control. sean, thank you for being with us and thank you for your patience. i know we have had a busy afternoon here. talk to us about that banking recovery. it seems pretty resilient, given what were pretty huge shock waves just a couple of months ago? yes. were pretty huge shock waves “ust a couple of months ago?�* couple of months ago? yes, thanks for havin: couple of months ago? yes, thanks for having me. _ couple of months ago? yes, thanks for having me, that _ couple of months ago? yes, thanks for having me, that is _ couple of months ago? yes, thanks for having me, that is pretty - for having me, that is pretty exciting what happened unfortunately at the end of the rocket launch. you know, i think that we probably got ahead of ourselves in terms of talking about a banking crisis here in the united states. i think we had a couple of banks that got in trouble, silicon valley bank being the largest, not because they had toxic assets on their blank sheets, but because they mismanaged our investment portfolio and that is the story for now. i think potentially there is another sort of challenge for the banking sector head, which

is commercial real estate with vacancy rates across the united states at almost historic lows and with a lot of that debt having to be rolled over at higher rates, so we will see whether that affects things or not. is there is the broad—based us economy, i think we are somewhat slowing, i think that is what the feds have been trying to do here for a while and trying to rate a place where they could slow economic growth, which would reduce demand, which would lower prices. we will see what the damage that they have done with the longer lasting damage they have done by doing so is over they have done by doing so is over the next several months. yes. they have done by doing so is over the next several months. yes, and when ou the next several months. yes, and when you look— the next several months. yes, and when you look at _ the next several months. yes, and when you look at that _ the next several months. yes, and when you look at that outlook, - the next several months. yes, and| when you look at that outlook, with inflation still where it is, interest rates still on the rise in large part and, as you touched on there, real estate proving to be an issue as well, what you most concerned about? what is at the top of your list? i concerned about? what is at the top of your list?— of your list? i would say for us eauities of your list? i would say for us equities it _ of your list? i would say for us equities it is _ of your list? i would say for us equities it is earnings. - of your list? i would say for us equities it is earnings. you - of your list? i would say for us i equities it is earnings. you know, we have had the consensus here for

the first quarter that earnings are going to slow. the earnings are going to slow. the earnings are going to slow. the earnings are going to pick up later this year, so while we are forecasting may be some short—term volatility of the market, eventually the earnings will start to rise again towards the end of the year. i'm not sure that is going to be the case and so, that is the thing i would be watching me most, what are the current estimates coming in, what is the year—on—year growth and what our company signalling in terms of what is to come? i think the us stock market is probably a little expensive on a pe basis, trading somewhere between 18 and 20 times earnings. you will want to do that when the overall backdrop was positive, i don't think you want to do that when the backdrop has as many challenges as we have here today, so for us equity investors i think caution is still the way to handle things, buy high quality companies, you can still invest in some of the high quality companies and generate a lot of cash and that will pay dividends because those dividends are going to to become more and more important as we go

forward because the backtrack doesn't look like we're going to have double digit equity price returns in this kind of an environment, so dividends can be a big help to a total return. sean o'hara, big help to a total return. sean o'hara. we _ big help to a total return. sean o'hara, we are _ big help to a total return. sean o'hara, we are really- big help to a total return. sean 0'hara, we are really grateful to you for being with us and thank you for your patience, it has been a really busy afternoon. sean o'hara there, president at pacer etfs distributors. now pakistan has struck a deal with moscow to buy discounted russian crude oil, which could lead to 100,000 barrels flowing between the two countries daily. pakistan's purchase gives russia a new outlet to boost its coffers, grow adding to growing sales to india and china as well. pakistan correspondent caroline davies has the latest from islamabad. pakistan it makes sense for them. china, india and pakistan are becoming increasingly important and from pakistan's perspective, they want to make sure they can keep the

lights on and the country moving. they're in mind this is discounted crude oil and that is important to pakistan at the moment because they are in a major economic crisis and the foreign currency reserves are incredibly low. now to that big if. this is whether or not pakistan's refineries can actually refine russia's crude oil. this is currently under a trial period while this dean li deal is signed, according to the reuters news agency, and that will be one very big question. there are a few other questions as well. whether or not this crude oil is going to be paid for in american us dollars, russian roubles or another currency altogether. how long is this deal potentially signed for? we don't have these details at the moment. according to reuters, the pakistanis have said they are expecting around 100,000 barrels a day from russia at the peak of the importation. that is a very significant amount for pakistan, which only imported 154,000 in total a day last year, so

that gives you an idea. so if this deal does go through and complete and this trial is successful, that would mean the relationship between russia and pakistan would significantly move on crude oil. but at the moment, there are still quite at the moment, there are still quite a few questions up in the air. 0ur correspondent caroline davies ferran islamabad. let's bring you up—to—date with summer today was my other business grows. id ikea has announced it will spend over $2 billion in the next years in the us as it aims to expand its market share in the country. the huge investment will be ikea's biggest everin investment will be ikea's biggest ever in one country and it hopes it will be enough to take on industry heavyweights like walmart. and twitter boss of elon musk has threatened to sue microsoft, as he accuses the tech giant of using data from his social media company without permission. elon musk is responding to microsoft's plan to remove twitter from its corporate advertising platform. elon musk declined to comment when approached ijy declined to comment when approached by the bbc on thursday. more on those toys on the bbc website. if you want to reach me, i am on

twitter at bbc ben thompson. we will see you soon, from the world business report, goodbye. hello, most parts of the country will stay dry and sunny for the rest of the day. it is a chilly wind blowing once again with high pressure to the north of the uk, the winds coming in off the north sea, even a bit self haar across those coasts, it will feel chilly, perhaps no better than 10 degrees, westernmost areas could make 18 in the western highlands. some patchy rain heading into east anglia and the south—east later this afternoon, the south—east later this afternoon, the rains tending to die off after a while, more wet weather coming into eastern parts of england later. further north will keep clear skies,

with the wind is dropping it will turn chilly as well, could be down to freezing by the early morning in the grampians tomorrow. a big change in the sunshine we are seeing today, that first band of rain pushes eastwards tomorrow and as it may well brighten up in southern areas, that will trigger one or to thunder raise showers, while it will stay mostly dry and sunny for much of scotland and northern ireland. the winds could be a bit stronger in southern scotland and northern england, but not as strong in the south—east and hear temperatures may sneak up to 14 degrees, but on the whole it will be cooler across england and wales, but some warmer some time to come across scotland and northern ireland, temperature 16 or 17 here. the rain and cloud across england and wales mean the tree pollen levels tomorrow will be reduced. still got some high levels across much of scotland and northern ireland. heading into the weekend and some cloud and further rain at times across england and wales may be nudging into southernmost parts of scotland and the eastern side of northern ireland, a few showers could be breaking out in the south

here, there is is again up to 14. again across northern scotland the chance of more cloud coming in, particularly across the north—east of the country. low pressure will bring in some chances of rain on saturday. but will start to draw away on sunday, allowing the wind direction to change to a northerly and that will bring colder air down from the north, particularly for the start of next week. but on sunday we still have some showers across england and wales, they will be driving to the south—east and could well affect the london marathon. following on from that, quite a lot of cloud, the showers in northern scotland turning wintry over the hills in that northerly winds, temperatures here only 7 or 8 degrees, still 13 or 14 perhaps in the south.

live from london, this is bbc news. the prime minister is considering a report on allegations of bullying against dominic raab. it is a waiting game, report that has taken five months to produce is in the prime minister's hands and the future of his allies. spacex's first flight ends in explosion four minutes after a successful left of. a rare solar eclipse in australia in front of funds, including tim peake, he was spoken exclusively to the bbc.