trade negotiators in the u.s. and china have been working for months on a deal that would satisfy both nations and and an extrusion tug of war between the world's two biggest economies but now a new threats by u.s. president trump up the pressure on each side trump said on sunday tariffs on two hundred billion dollars worth of chinese goods would increase to twenty five from ten percent that would reverse a decision he made in february to keep them at ten percent but that was when the two sides were making good progress on trade talks in asia were hit hard after the news european stocks also down and wall street is expected to open lower to. the u.s. china relationship is love hate at the best of times but everything seemed to be going so well late last week a bullish donald trump hailed a progress in talks to avert a full blown trade war which she jumping china. but the deal itself is going along pretty well i would even say very well we'll see what happens over the next couple of weeks but we're getting close to

a very historic monumental deal and if it doesn't happen will be fine too maybe even better. that hint of how the u.s. might be even better off without a deal became a prophecy on the same day trump standing was boosted by strong data showing the economy was powering along. the u.s. economy added two hundred sixty three thousand jobs in april the unemployment rate fell to three point six percent a near fifty year low wages also picked up for a leader who prides himself on mastering the art of the deal these figures gave him the option to pile pressure on china he announced a new round of punitive tariffs on two hundred billion dollars of imports. a classic negotiation tactic and they're feeling the pressure in china shares their plummeted with the blue chip shanghai composite down six percent. there are positive signs china's chief trade negotiator leo hood will head to washington after all there were worries he might not go but for now uncertainties about the direction of trade talks are upsetting investors across asia and damaging sentiment

in markets already nervous now with you in the studio to shed some light on the background here is that i've used china expert to fit in and often of course is also standing by in frankfurt the living let's start with you is hardly an accident happened so soon after the strong job state of from the us is this just trumps tactics it's definitely goes in tactic he felt emboldened by the strength of the jobless figures in particular but it's also been a negotiation going on on the chinese side too they're not prepared to just lie down we're hearing i'm hearing from my sources there that the that she jinping wanted. some of the concessions that the negotiation team was making he very much wants but his imprint on the trade deal that comes out to so i think we're at that stage in trade talks where negotiations they can kind of see the finishing line but there's a lot of a lot of naughty bits and pieces to go through yes but investors seem to disagree

that this is just tactics conor have. in frankfurt why a market like this. you know you know whatever it is tactics are not hot it makes the optimism go away optimism that you know you can rely on donald trump that you can hope for a change of mind here that the americans and the chinese might be able to find some common ground the other certainty about this is on the rise again and this of course raises concern on the trading floors that you know businesses manufacturers purchasing managers who give out alters for large capital goods might continuously be reluctant to order today we got reports from the german engineering sector that confirmed that your orders for the sector have come down again. if we look at not going to was talking about industry what is the outcome but people in asia want

well i think what people want in asia is very much for coming out was saying you mentioned on certainty what they want is certainty they want these talks to come reach a satisfactory conclusion there they wanted their i think they're prepared for concessions on the chinese side they're also hoping the trump will push too hard so i think what they want is a balance to come and they want to be able to have the certainty to be able to invest again to start expanding their businesses again and for their economies to start picking up pace again because we've seen a slowdown in asia and they're hoping that the successful resolution could maybe resolve the car is that the same here in here in europe is that just a deal whatever deal but a deal is the major thing here. well sure a deal would certainly make a lot of the uncertainty go away which would mean less volatility this is volatility what has been caused on the markets mainly because of this erratic

policy and those erratic tweets by the u.s. president let's not forget we've been talking about this uncertainty for a couple of months now for quite a while and during this period of time equity prices have risen to well significant high is because of course businesses have managed to beat analysts expatiate expectations with their earnings reports so in the long run the market can live with some uncertainty but the fewer you have of it the yes the fewer you have of it the better because then businesses can go wild with business as usual. in the studio thank you very much. no boeing says its engineers identified of force with a pile of warning system on a seven three seven max jets nearly two years ago that was before crashes last year

in indonesia and this year in ethiopia claimed the lives of three hundred forty six people those are since were believed to be linked to malfunction in software in the u.s. plane maker says it's engineers found the system was not working correctly but did not affect safety it said neither management no authority is were informed all seven three seven months planes have been grounded around the world boeing is working on a software out that it hopes will get the top selling jet back into the air soon. going to india which is emerging as one ages premier's start up ecosystems the indian government is aiming for a total of ten thousand start ups to be five founded by next year and is cutting red tape and offering tax breaks to help them along it's all part of a government action plan for startups and so far it seems to be working business is

booming in the first quarter of this year alone investors poured some three point four billion u.s. dollars into indian startups numbers like that face the country among the biggest generators of technology startups in the world over the past few years and there's no sign of it slowing down that first first quarter investment volume is almost forty percent more than the same period just a year earlier. but almost half that sum went to india's five biggest startups leaving the other one hundred fifty companies founded in that period to divide the rest between them much of the growth in startups came from sectors like health and financial technology e-commerce as so far let india start a boom but in that sector investment was down almost seven percent compared to last year and like in other countries the startup scene is concentrated in a few major cities where it's easy to find qualified workers above all in india

that is bangalore. and that is where our correspondent. is standing by for us at least i hope he is yes there is hello jay that's impressive figures there but the number of start ups alone doesn't mean anything if they all fail is not right. quite right the number of startups don't matter but the mrs haddo read that this is risky business so they're ok if nine out of ten startups fail as long as they can get that one start a protest a big hit so if you go back in time and look at flipkart which was india's largest e-commerce company and it was sold to wal-mart in a sixteen billion dollars deal and you look at the numbers there the investors who came in early let's put example axel partners they put in about two hundred million dollars they walked away with a cool one billion dollars not the same case with tiger global a new york based hedge fund they put in about a billion dollars that their stake is worth over three billion dollars now so they

don't really care for ten fifteen or twenty start ups fail as long as they get that big start of exit. india's e-commerce sector used to be the shining beacon in the startup scene but that sector has now recorded negative investment why's that. so there are a couple of reasons for this one is that e-commerce in india is that as a slightly more mature of the companies have grown up and the markets are really tapped out are so the growth in that sector itself is a little slow so and there isn't much only statement a capitalist can do there so that's why you see that the investments have slowed down and the other thing is that india's richest man mukesh ambani who also by the way owns a telecom company which is the fastest growing telecom company in the in the country has plans to enter e-commerce in india so are you looking at some regulatory uncertainty as well so that's probably. a few reasons why investments are slower an e-commerce and of course there are other sectors which are kind of

heating up right now. speaking about that you know overall investment being up forty percent that's good news which sectors are benefiting most from that so you would see our healthcare education and finance so these are three real sectors where you would see a lot of growth happening it's basically because india has a huge consumer market and a lot of people are coming online for the first time you would see a lot of people transacting their ditching cash they're going on on mobile payments you'll see a lot of people hungry to learn more upscale themselves so if you look at the jobs numbers that you look in that that we keep talking about here in india a million people hit the job market every month in india so all of them need to up skill so education is a huge priority out here and whoever is delivering it online using technology there are able to raise a lot of funds from indian fermenter capitalists. piqué speaking to us from bangalore in india on the startup boom thank you very much.

hey before you go here's a quick recap the. top story goble global equities have nosedive but china says it is still heading to washington for the final stretch of trade talks u.s. president donald trump has announced he will increase tarps on two hundred billion dollars worth of chinese goods if he does not get the deal he wants. and that's it from me other business as a team here in berlin for more business news on features go to our website www dot com slash swing to look at check global markets.

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