the chip war continues. china slaps export controls on rare metals used in the manufacturing of semiconductors. the hong kong stock exchange looks to woo more international investors to the city, even as tensions between the us and china shows no signs of slowing. hi there, welcome to asia business report our top story, the latest chapter in a tit—for—tat chip war between washington and

beijing. china has slapped export controls on two rare metals used in the manufacture of semiconductors. the move by the chinese ministry of commerce targets the metals gallium and germanium. china is a major producer of both. from august, exports of these metals will require a licence. michelle fleury has more. us treasury secretary janet yellen is headed to berlin, and hers is the second trip by a cabinet official to china since ties between the world's two top economies deteriorated earlier this year. her goal is to study the relationship, but she has got her work cut out for her. ahead of her visit beijing said he was imposing export controls on two rare medals essential for making semiconductors. the measures are seen as a tit—for—tat response after the us, the netherlands and japan recently restricted chip exports to china. some say the move is aimed at giving china more leverage in future trade discussions for tub gallium and a germanium the two mentals in question, will be subject to

export controls starting august the 1st. in a statement, china's ministry of commerce said it was to protect national security interests. china is the largest producer of gallium and germanium, which are used in a variety of products, occluding bitter chips —— including computer chips and solar panels. this is the latest developed in the global battle to control chip—making technology. michelle fleury in new york there. well, those us—china tensions also puts pressure on one of asia's largest financial markets. the operator of the hong kong stock exchange is now trying to attract more international listings and overseas investors by opening offices in new york and london. earlier, i spoke with the head of the hong kong exchanges and clearing, nicolas aguzin, and asked him how they're affected. it is obviously a tough period, during covid, and this is precisely why we want to make sure that we are out there with international investors,

opening an office in new york, trying to make sure that we transmit the message of what is going on in our market and also seek some feedback of areas where we can continue expanding our presence. we think that as the economic shift from a west to east takes place, hong kong is uniquely positioned directly take advantage of the great opportunities that we will have probably in the next few decades. so that's the purpose, trying to make sure that we would get everyone connected. but at the same time, for example, hong kong dier we've been talking a lot at the national security law, the damage to hong kong's reputation as a financial centre. has that affected your business, do you think?- centre. has that affected your business, do you think? from a commercial— business, do you think? from a commercial point _ business, do you think? from a commercial point of— business, do you think? from a commercial point of view, - business, do you think? from aj commercial point of view, hong kong continues to be very vibrant. it has some very

special characteristics, like free flow of capital, free flow of information. it has a currency based on the us dollar. hong kong has a very attractive tax regime of around 15%. the national security has been applied on a very narrow basis, and therefore we have not seen an impact in terms of our market, and last year, for example, yes, volume went down about 20%, if we look at it compared with 2019, when it was just like before, the protests and the covid, at that point our volume was about $87 billion, hong kong dollars, per day, and this year we are serving around 127, 128, which is comparable with last year. that is nicolas aguzin, who is the boss of the operator of the hong kong stock exchange, speaking to me a little earlier.

in other news this morning, twitter users will soon need to be verified in order to use tweetdeck. the change will take effect in 30 days. tweetdeck is currently free for all twitter users and it allows people to organise accounts they follow into different columns. the move to charge for tweetdeck could boost revenue for twitter, which has struggled to keep advertisers under elon musk�*s leadership. later today, australia is due to announce its latest monetary policy decision. the reserve bank of australia hiked the cost of borrowing at its last two meetings, bringing interest rates to the highest in 11 years. still, consumer prices have remained stubbornly above the central bank's target. earlier, i spoke with dwyfor evans of state street global markets and he explained how he expects the rba to move. very little priced in, but we do think there is a pretty high chance that the rba might hike once again. obviously it has a recent history of surprising. some of the less enthusiastic

members of the investigative committee, that think that the rba is going to stay on hold, cite the very week cpi number that we saw last week, but we think that underlying inflation, the core inflation, which is the inflation indicators that the rba is looking at very closely, they still remain significantly above target, and given other very strong areas of the australian economy, we think of consumer spending, we think is probably prudent for the rba to hike once more, partly as a catchup play to other central banks as well. i catchup play to other central banks as well.— banks as well. i want to ask ou banks as well. i want to ask you about _ banks as well. i want to ask you about that _ banks as well. i want to ask you about that inflation - banks as well. i want to ask. you about that inflation rate, because i've noticed a lot of central bank governors talking about that lag, after a rate hike, how the impact on inflation has it rather slow. why is that?— why is that? the impact of monetary _ why is that? the impact of monetary policy _ why is that? the impact of monetary policy takes - why is that? the impact of monetary policy takes a i why is that? the impact of i monetary policy takes a long time to feed through. it takes time to feed through. it takes time to feed through. it takes time to feed through to the real sector. as far as australia is concerned, really

matters here is the impact that interest rates will ultimate we have for businesses, obviously, but for the organ sector in australia. when their rate cuts, that will take time to feed through to the real sector, but mortgage rates will tend to adjust very, very quickly. —— when there are rate hikes or rate cuts. in other news, this morning shares of tesla popped on monday, following better than expected quarterly deliveries. its stocks rose by almost 7%, lifting the ev manufacturer's market cap to almost $890 billion. tesla's price cuts helped it deliver over 466,000 cars in the last quarter, an 80% jump from a year ago. the company is expected to report its q2 earnings on the 19th ofjuly. and let's take a quick check on oil prices now, and prices have settled down after saudi arabia moved to extend his production cut by another month. re at has

been leading the charge... —— riyadh has been leading the charge to cut production in a bid to get crude prices to remain high. but prices slide after surveys showed global factory activity slowing in june. authorities will get a chance to persuade energy ministers from other oil—producing countries who are attending a conference in vienna later this week. as countries like sri lanka and pakistan try to recover from their own economic crises, they've turned to financial institutions like the international monetary fund for help. they're not the only ones. africa too has tapped on the imf for help. but the conditions attached to these loans have been criticised for increasing social inequalities. jewel kiriungi reports. this man was a trade nutritionist working in a major hospital —— this woman was. she is now back in her village. that time, my child was there. there you are, i had my mum,

who i was to take care of, so it was painful. in the same government... back to the village. i do it because i have to survive. village. i do it because i have to survive-— to survive. faith is 'ust one ofthe to survive. faith is 'ust one of the _ to survive. faith isjust one of the over 22,000 - to survive. faith isjust one of the over 22,000 civil - of the over 22,000 civil servants who are entrenched by the government as part of spending cuts in the public sector. a condition set by the imf to access loans. the current government says they are charting a different course when seeking new loans. there are many _ when seeking new loans. there are many ways _ when seeking new loans. there are many ways of _ when seeking new loans. there are many ways of scaling - when seeking new loans. there are many ways of scaling down | are many ways of scaling down public—service wages, and what is not on the table in kenya is that of letting public servants go home. there is no intention either in the short term, medium term or long term to stack any civil servants in

kenya. stack any civil servants in ken a. , ., ., , ., kenya. the situation is not uni . ue kenya. the situation is not unique to _ kenya. the situation is not unique to kenya. - kenya. the situation is not unique to kenya. spending kenya. the situation is not - unique to kenya. spending cuts by other governments have seen thousands of health care workers lose theirjobs of a situation which has caused the most formal populations the highest burden. back in 2021, action aid, a global ngo, reported the loss of health workers between 2016 and 2021, following imf advice to expect coming —— cut spending health spending in african countries... action aid says the cuts represented a 50% loss in the number of nurses for each country. so, can developing countries solely rely on bailouts from the imf and other financial institutions to address their economic

challenges?— address their economic challenges? there is no substitute _ challenges? there is no substitute for _ challenges? there is no substitute for the - challenges? there is no| substitute for the mystic mobilisation. you can run to the imf, the world bank, the capital market — you still have to come home to raise your revenue domestically, to service your debts. he revenue domestically, to service your debts. he as that developing — service your debts. he as that developing countries - service your debts. he as that developing countries have - service your debts. he as that developing countries have a i developing countries have a large sector who remain largely untaxed. it large sector who remain largely untaxed. , , , h, untaxed. it must be designed so workers can _ untaxed. it must be designed so workers can contribute - untaxed. it must be designed so workers can contribute raising i workers can contribute raising revenue domestically. for many like faith. _ revenue domestically. for many like faith, governments - revenue domestically. for many like faith, governments need i revenue domestically. for many like faith, governments need to | like faith, governments need to do better to educate their citizens on the tribbett on affect of economic policies negotiated at the top —— trickle—down effect. jewel kiriungi, bbc news. that is it for this edition of asia business report. i will be

back with newsday at the top of the hour, thank you for joining. bringing you different stories from across the uk. in amongst these professional musicians from the orchestra of opera north are students from the royal northern college of music here in manchester. it's a spectacularform of learning on thejob. the college became the royal northern college of music in 1973. it was founded by sir charles halle 80 years earlier. today, 900 students study each yearfrom 60 countries, studying in schools dedicated to disciplines like strings, percussion, popular music. musical history is important here, too. back to the modern day, though, and playing with opera north will be lizzie, who wants to work as a music therapist with young people, and marcus, who's from brazil.

really exciting opportunity for us all to be able to perform alongside to perform alongside industry professionals. industry professionals. when i told people i'm moving to the uk, everyone will be like, "oh, you're going to london?" iwas like, "no, no, i'm going to manchester." we've got some incredible orchestras — the bbc phil, j the manchester camerata, the halle — and we've - also got things - like the manchester collective as well. it's a really buzzing classical scene. - the royal college's 50th anniversary celebrations culminate with a collaboration with manchester international festival on the 8th ofjuly. for more stories from across the uk, head to the bbc news website. hey, i'm zof, with the catch up! tonight — record—breaking weather, pride celebrations and wimbledon gets underway! and if you felt like it might have been hotter than usual recently, then science says you are right! the met office says last month was the uk's hottestjune on record. the average temperature hit 15.8 celsius, which is 0.9 celsius hotter

than the previous record. but some environmental groups 24th grand slam. say the warmer temps are having big impacts on nature, with more reports of fish deaths and changes to flowers, affecting bugs and insects. some other stories now. parklife festival founder sacha lord has formally threatened legal action against the uk government over drug testing at festivals. he says festivals had been doing this for at least ten years until last month, when he was told a licence would be needed for the first time. but the government says the permits have always been required. and thousands have celebrated london pride over the weekend. the uk's biggest lgbtq+ festival displayed colourful scenes as huge crowds joined the brightly coloured parades of floats, performers and dancers. and some good news for tennis fans — wimbledon is back for another year. men's defending champ novak djokovic secured a win in the first round.

he's going for a record