with xi jinping today — as the us brings in tariffs on china — and beijing retaliates. firms in canada tell us theirfaith in the us has and weird science. welcome to business today, i'm ben thompson. we start with those fears of a global trade war, and hopes of a deal between the us and china to avoid escalation. after president trump announced the us was putting tariffs

that he will speak to chinese president xijinping today. according to capital economics — that will hit imports worth $450 billion dollars a year. china has retaliated with targeted tariffs on some us goods — including oil and farm machinery. and they won't come in until february tenth — veteran analyst russ mould is sceptical. the customs duties that over i more than generates over all i more than where they were eight ——~;g°~ 7 7 7 7 ; w ago when 77

ago when 5 to years ago when president to introduced his first two jump introduced his first two tariffs on chinese goods, and their: did tariffs on chinese goods, and thee—e did not ”those ' ' ' “th; 5 added ' 5 ' “his; 1 added as z ' -=—z the tensions been going so the'tensidnshave'been gding for eight so ths'tensions'hsvs'been going for eight years, they on for eight years, and they haven't come security, 77 national'sscorily; intellectual are nationel'secority; intellectual are all national'security; intellectual are all hot between 7 between the: between theztwo nations issues between the two nations and �* one phone call can = -= them or not is resolve them or not is difficult to tell, but it seems unlikely. let's bring in duncan wrigley — chief china economist at pantheon macroeconomics. what is your read on this potential talks that will now? potential talks that will go on today, we know spat go on today, we know that spat the road back from with canadartherroad back, from those tariffs, to be you? cac 2” if he if”? you will 7 if”? you will be: 7 here? expected you will be done here? i think there is a decent that we will get a chance that we will get a short—term deal. president proven to be trump has proven to be quite when the responsive when the markets big thumbs down on u=t

7the prospect his tariffs, and the prospect an escalating trade war, so of an escalating trade war, so i think we could see the same lines. china might thi out ne lines. china might thi outand nes. china might thi out and say. china might thi out and say we're i might thi out and say we're going to come out and say we're going to crack down on fentanyl exports come out and say we're going to crack ( which 1fentanyl exports come out and say we're going to crack ( which is entanyl exports come out and say we're going to crack ( which is the |nyl exports come out and say we're going to crack ( which is the main xports come out and say we're going to crack ( wi but is the main xports come out and say we're going to crack ( wi but i the main xports come out and say we're going to crack ( wi but i think nain xports come out and say we're going to crack ( wi but i think that (ports demand, but i think that will only resolving things in the only be resolving things in the term. the conflict shaft term the ci�*fifl'ct 7777777777"77w'fi'mm" the two countries are between the two countries are quite deep and there is a lot of pressure. president trump made along the made many promises along the campaign trail, a of pressure him to 6 pressure him to go domestic pressure'on'h'rnfir'to go on china, so i tough on china, so i don't think this will be the final round. a think this will be the final round. �* ., ., . ., round. a lot of rhetoric on that - trail. - round. a lot of rhetoric on that - trail, and l round. a lot of rhetoric on i that - trail, and this that campaign trail. and this where the issue is to the canada issue. rolled on the of he rolled back on the threat of tariffs to canada temporarily because he got some of those 77 77 65.53 77 77 136535557" 77 ” icanadia’saidwei canceaaians; canada said we " ,. ,, c c w, w doing canceaaidns; canada said we " ,. ,, c c w, w doing their cencessiens; canada said we ,, w w ww c w w doing their stuff already, is not "75m? 55628156" -, w wienéi fiériiihiérly new, isnot particularly new, but it is not particularly new, but the china there are and part that long

demands, and part of that long trade dispute they running tradedispute they had president trump the white house. to the white house. ii;§ 7 think i think from president trump's of the most obvious point of view, the most obvious issueis point of view, the most obvious issue is the huge trade it is still �* $350 a year. and also, billion a year. and also, the end of president trump's first time, he did come to a deal china, the - hase china, the -hase one trade with china. the phase one trade . . in china promised deallnsehltnfh'na arfim'xe eventually bite $20 billion to eventually site see: “aillian of us goods. what worth of us goods. what happened there? a global happened there? a global happened and eéfide'fi't “seasfisd’a’fidmfi’afiw’fif 7" ' 7 h fulfil of didn't fulfil the terms of the perhaps understandably, deal, perhaps understandably, and then a trade of the presidency in the us, so this and then a trade of the presidency a the us, so this and then a trade of the presidency a starting so this will provide a starting place possibly for the two quite possibly for the two sides to negotiate, in terms of sides to negotiate,rin terms of “p sides to negotiate,rin terms of up with �* set of coming up with another set of it, it will probably happen

7 itheatrics 7 7 7 theatrics and market attec theatrics and make’f w c ww ww w, along the same lines with market adjustments, but that process, adjustments; but that process. there will adjustments; hut that process. there will be a rocky road. and theatricslesucha e , . ., . because [5 road. and theatricslesucha e , . ., . because m {of of noise 77 of noise right now, let ef "fife aid-“sh if 7 ~ w... though let af "ase out“... if s ,. —~~ though america realistically though athletics" * ’ ’ " do rely realistically theugh aimerica" * ’ ’ " do rely on each and china do rely on each consumers like other. american consumers like stuff that in china, rirr rhethey withieyciain’ w hitheyciain’do " hitheyciain’do if because they can do it more cheaply and they consume in cheaply and they can consume in united states, slapping on is 5 w i on isibad 7 on is bad news for tariffs on is bad news for america what president america despite what president may claim. yes, trump may claim. yes, absolutely, i you could a that one of the make a argument that one of the main reasons president trump back ma: , public, or at a lane alarge 77 of 7 alarge 77 of it? a large 77 of it were least a large part of it were unhappy with the very unhappy with the inflation on present biden. recordenupresentbidensdouht on chinese slapping tariffs on chinese time around is imparts. this time areund is because in the first time, the trump administration were careful not to hit so much consumer this time

consumer goods this time around, ithink consumer goods this time around, i think it is going to be a blanket tariff, whether it -——— 10% or the kind ”167.3; acting... 7 10% or the kind of numbers is 10% or the kind of numbers you are talking about during the campaign trail, 60%, surely ' ' surely going jrsurelyigioingto” ' ' jisurelyigioingtohave”w”? ' ' jisurelyigioingrtohaveraw ' ' 7';u’(el'y’g’oir{g’tl>iiéééfifiki.’ ' ' is surely goingte have a much obvious on american moreohviouslmpact on american pocket books. moreohviousimpact on american pocket books. and i think can pocket books. and i think thatis can pocket books. and i think that is going have a that is going to have quite a impact also on present ratings trump wplasa pepu'arity ratings he for trump wplasa pepu'an�*y ratings he for it. trump wplasa poles-ll ..f. . he um i « if he goes for it. thank you, we will talk _ if he goes for it. thank you, we will talk again _ if he goes for it. thank you, we will talk again as - if he goes for it. thank you, we will talk again as we - if he goes for it. thank you, we will talk again as we get | we will talk again as we get detail. we have a little bit of optimism returned because all that noise, ”thatinoisefallfi ”thatinoisefallofi”w” 77that?noisefallofithat?77 of that noise. all of that , that was trump's comments, reining back, and isa is a glimmer iséafglimmer of 7 iséafglimmer of full that. you are seeing stocks all that. you are seeing stocks rebound. _ all that. you are seeing stocks rebound, trading _ all that. you are seeing stocks rebound, trading in _ all that. you are seeing stocks rebound, trading in the - all that. you are seeing stocks rebound, trading in the green | ebauad trading in the see" ,,, ~ ~ ~ , ~ of uncertainties as same at these uneertaintieewwwww w ww www w

concerns over as seme et these uneertaintieewwwww w ww www w concerns over trade and a trade an adviser to 77 an adviser to trump —e said the president will be speaking with xijinping said the president will be speaking with xi jinping later today, the president, speaking with xi jinping later to perhaps president, speaking with xi jinping later to perhaps the president, speaking with xi jinping later to perhaps the pre is ent, so perhaps the market is optimistic that a deal come fiet'm'st't “fife? asst ea’fiffifit? " "7 "77 similar to what into play, similar to what result with and mexico, ta riffs tariffs for a 7 and the market seems to month. and the market seems to viewing these as a negotiating tactic from donald rather than a real trump, rather than a real threat of now least, in the retaliatory tariffs from seen as and china were seen as minimal and not so aggressive, and is z -:= the? markets thveémarkets a bit 77t7h77e7markets ; an}; 7 giving the markets a bit of hope that those fears of a trade war it could be trade we it eeuld lee wwwwwwwwwwwwwwwwwwwwww but trade we it seuld lee wwwwwwwwwwwwwwwwwwwwww but course trade war it sauld lee w wwwwwwwww but course there contained, but of course there is still the around with donald trump europe, with donald trump the eu could be next in saying the eu could be next in line to face tariffs. are seeing a are seeing a wave are seeing a wave of debt we are seeing a wave of debt buying as we see stocks eder�*g ereereertr�*rfircdrhr�*g the

hser�*a e=ee=eerterfi=cs=hha 7 the big 7 hser�*a e=ee=eerterfi=cs=hha 7 the big tech 7 into the green. hig techs ~ 7 c we, the way, just ahead of results we are results we 7a re to get tlge results we are going to get get today from to get today from google's alphabet. we have seen parent alphabet. we have seen stocks in the sector stocks in the technology sector a boost. stocks in the technology ~ - . stocks in the technology we will talk later. after president trump agreed a 30 day pause on tariffs — after talks with prime minister trudeau. down opioid smuggling. processing giant laval international. he told our correspondent that �*uncertainty is as bad as the tariffs'. the company has been in business over 50 years, that 50 years of success came from both sides together, =£= at creating relationshiosthat , —— — ——— a long time to took a long time to create. and out knowing that relationship was as fragile as it is, and

was as fragile as it is. and person's agenda can that one person's agenda can whole relationship change that whole relationship and change the course of a z- 7that has 7 77 777 7tha7t7ha7s7be7e7n77 7 7that has been around half a lot. —— half a hurta michelle fleury. this put businesses in canada. what are they about 7 77 about what 7 77 about what 7 next? yeu aheut what happens neett�*”” ”’”” ”"" now yeu alpeut what happens neett�*”” ”’”” ”"" now i am yeu alpeut what happens neett�*”” ”’”” ”"" �*side of this river, the other side of this river, the city of and these two city of detroit. and these two cities are known for the auto industry, and if you think about a car, the aheut a car. mayee the plastic maybe steering dashboard, maybe the steering wheel and the little park w your u—seseuéuesect—seé "" piece that 7 77 7 piece that you 777 7piece that you plug your ; in to rechar-e, in to recharge, maybe phone into recharge, mayhe of that is made here and "me of that is "aerie here and w ww . www w ww some of that "has of that is "aria here and w ww . www w ww some of that made over maybe some of that is made over there, when you are

a car, going 7 7a car,7going and building a car, going back and forth over here, and if that had gone into effect, it time hadgone into effect. it have to time had'gone into effect. it have to shut time had'gone into effect, it have to shut the price of would have to shut the price of making the car several times that is why name the car eeeeral flees that is why people were over. that is why people were so nervous, and i the over. that is why people were so nervous, .this the over. that is why people were so nervous, .this morning: conversation this morning in 7 is conversation this morning in . is although there its canada is although there its i there canada is although there its ithere is this 30 day belief there is this 30 day there is concern about tours, there is concern about happens after that, and what happens afterrthat. and idea you heard, what happens afterrthat, and idea you heard, which is that idea you heard. which is closest ally treats like our closest ally treats us like this where we have integrated chains, then what supply chains, then what does the future like, the the future look like, the conversations i've been having with people here has been 777775557; 7777755y57ene777777 7 maybe we to around, maybe we need to rethink and broaden our markets away from the well, not rethink and broaden our markets away but 1 the well, not rethink and broaden our markets away but 1 1 broaden �*ell, not rethink and broaden our markets away but'| 1 broaden it l, not rethink and broaden our markets away but 1 1 broaden it beyond away but to broaden it beyond the us. there is a total just the us. there is a total wake—up call here in of wake—up call here in terms of going forward. rethinking going forward. it is good to see you

you, it is good to see you there speaking businesses as there speaking to'businesses as get a sense of there speaking to'businesses as g around se of jjaj there speaking to'businesses as g around the if jjaj there speaking to'businesses as g around the world jjaj there speaking to'businesses as g around the world of aji there speaking to'businesses as g around the world of those right around the world of those announcements by the tech industry? of quantum science. today a major exhibition opens in paris. think electrons, think photons. think atoms. promise big rewards for business, but also some peril. billions are being spent worldwide to develop quantum computers, machines that will work in a fundamentally different

way machines simply can't. of medicine, or even to optimise investment portfolios. but quantum technologies also offer new ways to secure our data. is a controversial topic. hopes of rapid progress were raised after google then came the cold water. useful quantum computer. one thing seems likely —

that quantum technologies this space. see soon,