the us and china hold what's been called "candid" and "constructive" talks in beijing as both countries look to improve relations. and one of the biggest airshows in the world kicks off this week the main theme this year is sustainability. hello and welcome to asia business report. i'm monica miller. our top story this morning us secretary of state antony blinken has held what's been called "candid" and "constructive" talks with his chinese counterpart in beijing. both sides also emphasised their desire for stable and predictable relations. this is the first time the head of america's diplomatic corp has visited the country in half a decade. relations between the world's two largest economies have

for more, wendy cutler vice president of the asia society policy institute and former us diplomatjoins us now. trade relations like other parts of the us relationship with china are tense. while a lark of trade still continues to flow between the two countries tariffs remain in place export restrictions remain in place and try never increasingly is imposing regulations making it very tough for us companies to operate in their country. interesting though because economic ties still happen where discussions with geopolitical issues and onto the defensive front just shut down so we just now have bill gates and elon musk visiting china she would feel more positive about the economic side of the relationship was not clearly beijing seems more interested in reviving or strengthening the economic part of the relationship versus the military part.

of the relationship versus the military part-— military part. one thing i will be looking — military part. one thing i will be looking out _ military part. one thing i will be looking out over - military part. one thing i will be looking out over the - military part. one thing i will be looking out over the next| be looking out over the next day now is whether there is a pathway for secretary parker to and others on the economic team for a to visit beijing in the coming months.— for a to visit beijing in the cominu months. u, , coming months. some companies like a- le coming months. some companies like apple opening _ coming months. some companies like apple opening up _ coming months. some companies like apple opening up stores - coming months. some companies like apple opening up stores in i like apple opening up stores in india now and how to worry to turnit india now and how to worry to turn it be that thesejob local tensions are getting in the way of their own economic prosperity. of their own economic prosperity-_ of their own economic prosperity. of their own economic --roseri . , , ., , prosperity. they should be worried because _ prosperity. they should be worried because the - prosperity. they should be worried because the word | prosperity. they should be l worried because the word on prosperity. they should be - worried because the word on the street is that diversification and if you are a us company in particular you do not want to put all of your eggs in the china basket. it was to diversify and make sure you've multiple sources of supply and multiple sources of supply and multiple markets to sell to. you are a former diplomat and negotiator us what is going on on the sidelines and how would you measure success for this visit? , ., , visit? first i think it will be

very important _ visit? first i think it will be very important to - visit? first i think it will be very important to see - visit? first i think it will be . very important to see whether indeed secretary antony blinken gets a audience with xi jinping today in beijing. i think it is likely that he will because i think china has an interest like the us in stabilising the relationship and president xi jinping as planning to visit the us in november before the aipac meeting and he will want a very smooth and positive meeting in the united states. the whole world is watching and i think the more engagement thatis i think the more engagement that is taking place between the two countries even if we are not seeing eye to eye on all of the issues, talking is better than not talking. astrazeneca say it will not comment on its future strategy after a report of the financial times saying that it was draughting plans to spin off of its china business. the move, if true, could protect the firm from tensions to the us and

china. us presidentjoe biden kicked off his 2024 reelection bid for the pitch to union members in the working—class city of philadelphia over the weekend. mr biden has been, seen as the most pro—union president in history in the block is a key part of his electoral campaign. this also marked mr biden's first political rally since announcing his bid this week is shaping up to be an important one and we're keeping a close eye on thursday. that's when it's decision time in ankara the central bank of turkey will announce its latest decision on the cost of borrowing. it's theirfirst meeting since president erdogan won a new term in a recent election runoff. the turkish lira is currently on its longest losing streak in over two decades. also on thursday is when us fed chairjerome powell delivers the second of his twice yearly reports to congress on monetary policy. analysts are hopeful they'll get more clarity on what the fed intends

to do next. there have been growing concerns that monetary tightening is pushing the global economy into a recession. for more on this we're joined now by moody's analytics's chief apac economist, steve cochrane. he told me if those signs are true. , ., , true. they are definitely hide the rate of— true. they are definitely hide the rate of growth _ true. they are definitely hide the rate of growth from - true. they are definitely hide the rate of growth from the l the rate of growth from the world is slow particularly in europe and north america well below potential. so any kind of shock looking at the economy and one of the shocks could be and one of the shocks could be a couple surprise interest rate hikes that could push the economy over into recession. the thing to remember though is that so far given all of the various shocks that have hit the economy of last couple of years, the global economy is pretty resilient. right now they are not too many individual economies that one can point to it and say they

are in recession. labour markets are fairly strong in the us and europe. growth still in specific regions outpaces europe and north america. so as you mentioned risks are high. but so far so good. we you mentioned risks are high. but so far so good.— but so far so good. we saw a lot of central _ but so far so good. we saw a lot of central banks - but so far so good. we saw a lot of central banks are - but so far so good. we saw a lot of central banks are not i but so far so good. we saw a | lot of central banks are not on the same page we have the fed which is holding steady we have the european bank deciding able raise its rates so where do we all stand on this in of inflation?— all stand on this in of inflation? , ., inflation? interesting that the euro ean inflation? interesting that the european bank _ inflation? interesting that the european bank was _ inflation? interesting that the european bank was a - inflation? interesting that the european bank was a little - european bank was a little behind in getting started and raising rates so they are still on that process and inflation has been very stubborn in europe. in the us, inflation is coming and there are signs that inflation expectations are also beginning to ease in the us. so the federal reserve at least for now seems to be comfortable with where plates are. although it is clear that they will be looking very carefully at the july meeting at another rate hike. china's countercyclical,

instead of the economy going through a period of strong recovery and not using china is just struggling as it emerges out of its pivot away from zero covid last summer. at the beginning of this year look like there were high expectations that the chinese economy would recover quickly but it really has stalled. there are really no good positive indicators about the chinese economy in terms of investment or trade or spending at all. so the central bank is looking at anyway they stimulate the economy, stimulate the economy, stimulate the economy without adding to the overall level of debt that is in china. that is the quandary that the face down. this week also sees the return of the paris airshow one of the biggest events of the year for aviation and aerospace industries. hundreds of thousands of visitors from around the world are expected to attend... and the dominant theme this time is sustainability.

theo leggett finds out if this talk is signs of real commitment... 0rjust greenwashing. so this is the wing of an 820 31 aircraft and what we have is a full—scale test, a life test. aching wings work better as a key goal for engineers at key goalfor engineers at airbus is key goal for engineers at airbus is research centre near bristol in southern england. they are looking at ways to improve aerodynamics, testing advanced materials until they break. and even carrying out research at super cool temperatures. this place is really a geraint laporte tori were at the cereals and techniques that will notjust go into the next generation of air across but beyond that been developed and through all of the sufficiency is going to be key. the aerospace industry does not have a choice. with millions of people are going to keep flying on aircraft around the world for decades to come than the industry as a whole is going to have to get a lot cleaner and a lot greener. we

want peeple _ cleaner and a lot greener. - want people to be able to keep flying but we cannot do that while we are damaging our planet. so by improving the way you fly, improving our products, enabling the introduction of low carbon or zero carbon fuels into our products we will enable flying to continue to connect the world and unite people while also making it sustainable. small wonder then that as executives from around the world gather here in paris assisted bleeding is at the top of the agenda. because here is theissue, of the agenda. because here is the issue, the global airline seat is set to double over the next 20 years but at the same time the industry is committed to going carbon neutral by 2050. sojust how to going carbon neutral by 2050. so just how realistic is that? is it even possible? the short answer _ that? is it even possible? the short answer is _ that? is it even possible? the short answer is no. _ that? is it even possible? the short answer is no. to - that? is it even possible? the short answer is no. to the best of our— short answer is no. to the best of our knowledge with the potential for clean energy production in the coming decades there is no way in which _ decades there is no way in which we _ decades there is no way in which we will be able to have clean — which we will be able to have clean aviation in 2050 with an aviation— clean aviation in 2050 with an aviation macros to the speed we have _ aviation macros to the speed we have seen— aviation macros to the speed we have seen of last decade that it's have seen of last decade that ii'sjusi — have seen of last decade that it'sjust not possible.

electrification sustainable fuels even hydrogen power, these are all technologies the industry insists will have a role to play in cleaning up aviation. forthe role to play in cleaning up aviation. for the moment though, the offence insists on replacing older planes with newer ones. they are already much more fuel—efficient than their predecessors which means that they are also cheaper to run. that alone is likely to keep the orders coming in, not just this year but for years to come. on wall street on friday... ina week in a week in which the fed decided to pause interest rate hike. the dowjones industrial average fell 109 points to 34,300, the s&p 500 shed 16 points, and the nasdaq composite dropped 93. wall street will be closed today for the juneteenth memorial. and that's it for this edition of asia business report. thanks for watching.

moments later the pilot seems to be on his feet and walking away. it was caught on camera by mike centre be a volunteer with the rn ally who was out walking his dog. i with the rn ally who was out walking his dog.— with the rn ally who was out walking his dog. i could seize him stumbling _ walking his dog. i could seize him stumbling out _ walking his dog. i could seize him stumbling out and - walking his dog. i could seize him stumbling out and i - him stumbling out and i disappointed back and that was it really so i went down and sat him down into the other guys came along side and just looked at his injuries and he was very lucky. the key is more distressed by his plane.- distressed by his plane. market lives close _ distressed by his plane. market lives close by _ distressed by his plane. market lives close by realise _ lives close by realise something was wrong as she looked out of her window. i got my binoculars _ looked out of her window. i got my binoculars because - looked out of her window. i got my binoculars because i'm - looked out of her window. i got my binoculars because i'm nosy, you know. and i had realised that— you know. and i had realised that it — you know. and i had realised that it was an upside down seaplane. that it was an upside down seaplane-— that it was an upside down sealane. ~ , seaplane. the welsh in-flight service said _ seaplane. the welsh in-flight

service said one _ seaplane. the welsh in-flight service said one person - seaplane. the welsh in-flight service said one person was l service said one person was taken to hospitalfor service said one person was taken to hospital for treatment and accident investigators are also looking into what happened. the plane has remained underwaterfor happened. the plane has remained underwater for most of the day quickly covered once the day quickly covered once the tide came in. on a busy sunday day this morning's plane crash what people were in caf s and on the front are talking about everyone is relieved that the pilot appears to have had a very lucky escape. for more stories from across the uk had to the bbc news website.

bbc news bringing you different stories from across the uk. this was birmingham's balti belt at its height. dishes created by the pakistani community here put their city on the gastronomic map. it's very tasty and it's quite reasonable in price. i've tried to make myself at home. it never comes out with it like it. the lady poole road here in balsall heath was once the heart of the balti triangle in its heyday. 20,000 diners a week would visit the dozens of balti houses here.

now, just four remain, including shebaa farms, which is half hussein's family, started in 1987. this is what a proper balti is. thin pressed carbon steel. and it's cooked in here and served in air and typically eaten out of here as well. a bit of chilli powder. why are you one of the few remaining? a lot of restaurants in its sort of peak time. there's probably about 40 or 50. but the old boys have either passed away or theyjust haven't got it in them any more _ theyjust want to retire or whatever else and there's no one in the family to take it forward. classic birmingham—style chicken balti. for more stories from across the uk. head to the bbc news website.

hello, i'm hugh ferris at the bbc sport centre.