we're going to have some climate impacts winter greater than the snow pretty. it's really frightening. why aren't people more concerned. through first w. . the deadline has passed and the u.s. has upped its tariffs on china so what does that mean for trade negotiations between the two powers and what does it mean for the global economy we'll take a look. and should tech giants like facebook and google face even more regulation or even be broken up we'll talk to nobel prize economist paul romer was

a different idea for resizing tech firms. welcome to the business i'm sitting there in berlin next watching. us tariffs on two hundred billion dollars worth of chinese exports have jumped from ten to twenty five percent that after china missed the deadline for a new trade deal imposed this week by president donald trump and china has threatened retaliation but its negotiating position may have weakened earlier sanctions have already been hard. to beat fabrics or toys at the international wholesale market in you you'll find just about anything you need for your home honk yung lean shows textiles the town of conflict with the us is ruining our business. trade tensions between china and the united states have affected me a lot we don't have any more orders from the united states most of our clients are from the middle east but they're also under u.s. sanctions we're getting less and less orders. and she's not the only one who in

eastern china is an important center for trade in household items and they were exported across the globe when the trade dispute isn't raging that is the world's most famous mouse which used to be a big sales item has become a real shelf warmer here things aren't any better in chain you making ceramic shop . i hope china in the united states can go back to the tops fairly and reach an agreement that if the trade talks blow up it will be difficult for us to do business in the future it affects the whole world not just our human market or china made effects everywhere. it's in the says you know how to look into how the tides will he's closing up for the day maybe things will look better tomorrow but china's exports to the u.s. shrunk by thirteen percent in april much worse than expected.

and for more on this we're joined now by kathryn young an analyst with fidelity international in hong kong and our financial correspondent frankfurt conrad who isn't welcome to you both catherine let me start with you the u.s. really upping the pressure on china what's the reception in china. catherine can you hear me. there. let's actually go to conrad right now i think reading some technical problems on catherine conrad what's the global impact of these tariffs we talk so much about the u.s. and china impact but this is going to affect other businesses as well but it. including in frankfurt including all over the world it's expected that this policy of protectionism of imposing you know taxes basically import tariffs taxes on goods imported into the united states will have

a slowdown effect not only on the economy in china where those imports come from but also in america you know businesses in america will likely not any longer be able to absorb the negative effect of those import tariffs they will try to shift more of the negative burden onto american consumers who as a consequence of course will consume less and this is how this will slow down also the economy in the united states and with the slowdown in the u.s. and in china of course europe will be affected as well we are going to experience that slow down look at what happened in the economy here in germany in the recent months during the period of time where all those other import taxes already were in place and i believe we have catherine back with us catherine what's been the reception in china to these increased tariffs the market actually opened up not pricing in a no deal and so by midday the markets overseas so quite

a lot of volatility on quite a lot of volume two so what's key to note is that we're going to continue to see this to ing and fro ing between the u.s. and china so all the exports in terms of this high it's haram actually going to start as of the tenth of may so goods that are already being transported on going to be impacted so that could actually buy some more time for the negotiations which of course are happening over the weekend and catherine if this does come to sort of a tit for tat trade war how bad could this get on both sides. well in terms of what the chinese are likely to do to protect sentiment is like other central banks be very accommodative still so we could see a cot in the reserve requirement ratio the triple all so that's monetary wise fiscally we could see an increase in fixed asset investment spending which is likely to support sect such as infrastructure. and conrad i want to go back to you

how can businesses protect themselves from these tariffs you said they might have to price them in this time what else can they do. basically there's not much much you can do stephen listening to what catherine just said everyone is sort of focused on the short term perspective right now what can you do in an environment like this where you don't know what happens next of course in the mid-term and the long term what businesses can do is sort of you know look at your supply chains try to shift production to locations where you know you are less exposed to such a risk but that takes a long time and it's also very costly in the meantime what businesses do is you know pile up cash. postpone every risky decisions their short short term solutions their. joining us in frankfurt catherine young from hong kong thank you both. california google's io developers

conference is ending the tech company showcased some new developments but privacy issues have also learned over the conference as well as the specter of more regulation google c.e.o. sundar pichai recently said that google shares user privacy concerns and even welcomes legislation from the u.s. congress about regulation that comes after facebook c.e.o. mark zuckerberg said his company was also open to regulation so why this one desire for oversight. well the writing is on the wall data scandals and public frustration are growing the e.u. has already passed out of privacy laws and in the u.s. a leading presidential candidate lizbeth warren is calling for a break up of big tech firms like facebook and google now nobel prize winning economist paul romer says he doesn't believe tech companies can be effectively regulated you would rather see a substantial tax on advertising sales that he says would motivate companies to collect the data they need for target to target advertising and shift to

a less damaging business model i spoke with professor romer earlier and i asked him what effect he saw his tax having on big tech companies like facebook and google while the goal of this tax is to address a set of problems that everybody is unhappy about but it dress them not through and i trust which i think will work north through regulation just use the tax system to trance which a spec to a model that we're familiar with and that works where people know what they give up when they get something and also to design that tax to create an incentive for these firms to not get so big to not be so powerful this is the right kind of tax would give them incentive to actually break themselves into independent organizations because that this will lower the total tax bill the you have been talking for a long time about taxing digital firms these are the issue here is about something more critical than tax fairness. yeah. i think it's important though to keep

our focus on what's really at stake here the stakes now are about control of all of the information that we use to make decisions of our lives to make public decisions it's it's a much more fundamental issue than just covering covering the budget and we want to stick to this tried and true notion that we're all better off if we've got choice if there's competition if there's more than one forum where we can try and be heard or go listen. at the same time it does seem like this would solve the revenue question that a lot of e.u. countries have yeah it might generate revenue but that's not the reason to adopt this tax the goal in this tax is to discourage or deter behavior that's harmful and in the best case this tax might not generate any revenue at all because firms stop

doing the things that we think are harmful and you don't have a lot of confidence in regulatory bodies in the u.s. you mentioned specifically boeing in the f.a.a. at the u.s. regulator in your piece why don't you trust regulators in this case. so i'm on the record saying that the f.a.a. plus it's the other agency the n.t.s.b. the national transportation safety board the two of them together are the gold standard for regulation and i recommended a system like that for our financial sector they were very effective at regulation but what we've seen recently is that. the boeing was so powerful through its influence on the congress and the executive branch boeing was able to mood or seems to have been able to neuter these once very effective regulators so in addition to thinking about too big to fail in the financial sector we've got to start worrying now about too big to regulate does that mean then that you believe that companies

like facebook and google are too big to regulate i think it's you have to be careful about saying that you know more than you know i think there's a high probability though that these organizations are too big to regulate or to say it in a slightly different way if they were broken up into five or ten different organizations it would be much easier for a regulator to do the job of creating the kind of society and the kind of information flows that we as citizens want to see you talk frequently about the role of knowledge in our economy and its relation to growth if you believe that reining in large technological firms is important to incentivizing knowledge in our economy. i think a useful way to think about a new technology is that it creates a lot of affects some of which are good some of which are bad. the way we make progress is you implement the new technology but you limit the harms so then you

just get the positive upside and to give you an example when we first started moving to cities as as humans there were a lot of problems with cities there were health problems people didn't live as long and cities so what we had to fair how to do was to get the advantages of cities but address the health problems with public sanitation public health in the same way we need the government to work on our behalf to limit the negative side effects of new technologies and to help us enjoy the benefits they can bring. and that was paul romer a professor of economics and two thousand and eighteen winner of the nobel prize for economics speaking to me earlier and that's it for me and the business team as always thanks for watching.

we're not here to judge. but to eliminate prejudice and. we're not here to change your opinion but to open some space for different points of view we're not here to speak on behalf of anybody but to let everybody speak for themselves.

or to give the right answers but to ask the right questions. we're not here to indoctrinate but to listen. plus ninety connect to an unbiased agenda subscribe now on youtube. hi there and welcome to news from the world of arts and culture in today's show we've got a special focus on the upcoming venice began knowledge a treasure trove of contemporary arts so let's have a quick look at what's in the pipeline. opening up to the public on saturday for the fifty eighth time this year's venice new knowledge is intended not to send

messages but rather to raise questions. and british ceramicist edmund deval is also at the be an olive and brings his remarkable library of exile and his passion for porcelain to venice. but first we had to southern germany where the doc fest munich kicked off on wednesday and that's an international film festival devoted entirely to documentaries and with one hundred fifty nine films from over fifty countries it's also one of the biggest of its kind in europe while a big theme this year is the tenuous relationship we have with our planet and so we've picked out a few highlights. from the reagan tells the story of a small town the promise of industrial boom and the need to protect the environment . people make a decision on where they have no spiritual connection to go.