so into submission faced with the uncertainty and the prospect of sanctions little by little european companies start to trickle out of iran. and the race to take supremacies has the rivalry between the united states and china left europe in the dust for good. this is your business update on helen humphrey in berlin good to have you with us a new companies could be finding themselves between a rock and a hard place now and e.u. commissioner says they're prepared to use legislation making it illegal for european companies to comply with u.s. sanctions targeting iran u.s. president donald trump has threatened to slap sanctions on firms that do business with iran. has some done j.v. and checks the news several times a day the arena entrepreneur is currently in germany visiting his business partners he sells medical technology and is also involved in the computer industry.

donald trump's decision to withdraw from the iran nuclear deal comes up at every business meeting how will the e.u. react will there be new sanctions against iran. done j v and has made a lot of contacts through international trade fairs like this one in tehran last year and he has contracts with european companies but now many of his partners are uncertain about the future of the businesses. carnes right now we have to sit down and see what's going on basically through the improvement relations between iran and european companies especially with germany and the very moment. we can see who are real partner. and to be

a spokes bomb speaks to his staff in the middle east several times a day fire video link from darmstadt in southwestern germany he provides high speed satellite internet to customers in afghanistan pakistan and iran. airlines have shown a lot of interest but getting the money together for these kinds of orders could become increasingly problematic that's why when i would what would have worked fine a week ago might be impossible next week getting some of the fun these big projects for instance a european bank with branches in the us won't be able to finance them. and. is still trying to keep his customers in the middle east happy but if the sanctions go ahead business is like he is might have a difficult future. well the french oil giant totalis to pull out of a huge drilling project in iran unless it gets an exemption from u.s. sanctions the gas project is valued at two billion dollars making it one of the

biggest european investments in iran since the lifting of sanctions in twenty fifteen to town receives ninety percent of its financing from u.s. banks and says it quote cannot afford to be exposed to any secondary sanctions company says it's discussing a possible waiver with us and fred to authorities. well let's bring in our financial correspondent yens quarter now yes we're also hearing that german insurer allegiances landing to wind down its business in iran tell us more about that. well i'm not a spokesman from leonsis quoted as saying that they're actually looking at their poet folio to identify pie iran related to business and then pretty likely will wind down this part of their business but the spokesman is also saying that iran related business is minimal and that they're also waiting for some guidance from

the european union and old saw from the german government so the whole process is ongoing but it does look like there's also winding down their business related to iran and now you and despite these g.s.a. mystical tensions are talking iran china north korea in fact don't appear that rattle is that is there any reason for this. well you know investors on wall street they bet on possibilities said they're trying to figure out how likely is it for instance that the north korea talks will not take place and if so how likely is that that is there are no talks of that would be the case and how likely it is that actually the tensions could escalate nobody has a clear answer to that so therefore it's almost impossible to make any bets on that and then when it comes to enough there is a deadline on thursday and it is very unlikely that we will get any

deal done between canada mexico and the united states any time soon there are elections in mexico and a good six weeks from now then we have the congressional elections here in the u.s. by november and it was all that stuff going on i do not really see that nafta is going anywhere at this stage yet corker our financial correspondent for us in new york thank you. trade tensions continue to rise between the globe's top two economies china is stepping up inspections of key u.s. imports like poole can call us terror threats from both sides hang over billions of dollars worth of goods that could spark a trade will now another high level delegation from beijing is visiting washington . he might feel like yes china in the palm of his hand u.s. president donald trump placed sanctions on chinese electronics giant z t e that

almost ruined them but no trump is promising to be more lenient and help them back into business provided china scraps plans to impose sanctions on u.s. agricultural imports. it is well known that the president president wants to reduce the bilateral trade gap. i think the way to do that is for china to lower barriers across the board in the us export now and do it also creates growth in their growth keeping these barriers down is important for u.s. farmers they would be hit hardest by the chinese tariffs announced in retaliation to trump's plans tariffs on chinese steel and aluminum imports farmers are important voters for donald trump and he'll need their support at the mid-term elections come autumn. to italy now the country's two anti establishment parties are reportedly close to reaching a deal to form a coalition government now the move would put an end to more than two months of

deadlock but there are plans to free up billions of euros tax cuts and welfare already rattling the markets why well italy is already two point three trillion euros in debt now that actually amounts to twenty three percent of total debt so it's pretty steep when you consider that the country only makes up fifteen percent of the euro zone's total economic output now last year the italian economy grew one point seven percent but they're all signs that that growth well it could be slowing down manufacturing has been sluggish since the beginning of the year and business confidence has dropped as well now earlier we spoke to the italian economist mechanic at archie who had been touted as a future prime minister and asked him what he thinks are the most pressing reforms for the country. i believe eataly needs labor reforms i believe we have a problem here mismatch of supply and demand so labor's we have young people

unemployed cannot find jobs. we also have colburn's that cannot find collins in easily we need to really do what i called called all to do the like in the computer reset and really look at everything a nation said entire system we need to sustain the changes to meet reform of the whole society and economy system in our country. now data privacy versus innovation europeans especially germans don't like companies gathering their information but it's what's powered the tech giants in both the united states and china in particular any price europe takes right now is for taking the lead when it comes to regulation. europe has been left behind creating tech titans has so far proven the domain of the u.s. but china holding challenger status both countries have been able to take advantage

of gigantic domestic markets targeted investment in the mastery of disruptive winner take all models that have allowed the likes of google and facebook to thrive . those are only two out of the five most valuable public companies in the world all tech companies from the u.s. . china's catch up strategy appears to be working its technology champions ten percent and are now both in the top ten european companies are nowhere to be seen amongst the global elite. but the seeming omnipotence of tech giants could be waning and it's europe bringing it in. competition commissioner mark plate of a stagger has pursued huge antitrust cases against silly called values biggest slopping billions in regulatory fines and starting next week europe's general data protection regulation r g d p r will require businesses to increase protections on the data of citizens europe's lead and regulation could be an opportunity for the

continent's like tech industry if it means european companies get better at building socially responsible alternatives to today's big tech but will they. thought well they remained the big question now earlier we spoke to close to ten votes he's the page of the german american chamber of commerce in san francisco we asked him his take look i mean silicon valley is a really unique ecosystem and i think especially the business to consumer companies that we're talking about that are in the news right now facebook google we did miss the boat on that i don't think we saw that as a viable business model in the beginning we're much more industrial focused and so i think that's where we're lagging and we're probably not in the space right now where we want to catch up in that particular segment. question of oath that now let's say you're up to date with the latest from the world of business for more head to our web site that is of course at g.w. dot com forward slash business we've also got facebook and twitter all handle at

the business so i look forward to seeing you tomorrow.

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