beijing retaliates and its trade dispute with us and markets tumble on fears that things are spiraling out of control so is there still time for a deal between the 2 nations we'll give you the latest. also coming up attacks on 2 saudi tankers in the persian gulf was the real target the price of a barrel of oil. and counterfeit important quality drugs are threatening hundreds of thousands of patients on the african continent we'll tell you what's going on. and welcome to your business i'm stephen beers in berlin good to have you with us the u.s. china trade row has taken another turn with beijing announcing it will increase tariffs on 60000000000 dollars of u.s. goods from the 1st of june this comes just 3 days after washington more than double

duties on a raft of chinese exports the economic saber rattling is hitting businesses and consumers on both sides of this feud. china's response to washington's lightest tariffs was as swift as it was predictable beijing says it will impose additional tariffs of 20 to 25 percent on $60000000000.00 worth of u.s. imports. raising tariffs will not solve any problems but after china will never surrender to external pressure we have the determination and the ability to safeguard our legitimate rights and interests. more than $5000.00 us products including american airplane pots and liquefied natural gas are among exports to be hit by the new tariffs from the beginning of next month washington sanctions announced on friday activated a new 25 percent duty on nearly $6000.00 categories of products from china. after

announcing his new tariffs president donald trump took to twitter to assure his people that china would foot the bill for them saying we will be taking in tens of billions of dollars in tariffs from china but on us t.v. one of trump's chief economic advisors was forced to admit that u.s. citizens were going to be splitting the bill with chinese consumers despite beijing's bluster by setting the june 1 date rather than making the retaliatory measures immediate china at least appears to believe that the 2 economic powers can find a resolution. and for more on this let's go now to our financial correspondent new york quarter yes it's been quite a day on wall street what's the latest well i mean investors seem to be losing faith that trade deal can be reached anytime soon and we have to specially companies to either produce in china or import from china or export to china.

among the biggest losers of boeing apple caterpillar all losing more than 4 percent in the value of some of the big tech names actually are off more than 20 percent from their recent highs the dow jones industrial average losing more than $600.00 points about 2 and a half percent nasdaq composite down by even almost 3 and a half percent oil prices losing so all over the place we saw the color red so meaning that we saw the whole shares and also commodity prices under quite some pressure so an uptick in this trade dispute a very bad day on wall street what does this mean for the u.s. economy and. altogether of course has been running on full steam. you know if we look at the status quo so what happened so far all the tariffs in place all ready the u.s. economy could get hurt so that's what economists expect by about a quarter percentage point so that is not too bad yet we might also see was the

terrorism plays higher cause we already heard that for u.s. households about $800.00 a year the real problem would start if their trade dispute escalates if u.s. president donald trump would impose tariffs on more imports in the amount of a good $320000000000.00 that could actually shave off about an additional one percent of growth here in the united states so the big hope right now is not that we reach a deal soon but that the trade dispute does not even escalate further right there for us in new york thank you yes and the u.s. is also continuing trade talks with the european union where economic signs are pointing back up after a brief slowdown there earlier asked paul thompson of the international monetary fund how trade tensions could hit european capitals and what makes him so sure that european economies such as germany's are in fact improving i do she think

that we are. seeing it all at a turnaround i do think that we in germany and in the euro area are more broadly will see a steady recovery in 20192020 with a growth of reaching. potential around $1.00 by next year they're looking at the numbers. and. it's. what what was going on i think was was primarily. a temporary weakening in in in x. tone demand combined with some some disruptions including in the kind of story in in germany so i yes we have a recovery but i do not think we are going to get back to the cyclical is the heidi had in 2017 where we had growth of about 2 and a half percent of g.d.p.

we are going to be well below that does that mean this was a temporary blip and in this case not structural that's correct there was clearly a weakening in demand. external demand again this week we had that the fact that there was a weakening is not is not surprising since since we have actually had growth in a number of countries above potential for a prolonged period so we did expect gross to come down but what we saw last year was more than the usual sort of myth cycle cooling it was much to stephen too fast to be that but more recently we have seen demand starting to recover in the united states in in asia and that suggests also that we are going to see renewed buoyancy in exports out of germany and out of the euro zone. where there's

a lot of global uncertainty of course both in the economic arena and clinically so one of the biggest threats the e.u.'s economic path. to do big wrongs the risk of an escalation of off. of trade tension and a hot direction on trade tensions what we are concerned about is not the direct impact of off of. tariff some sports but particular if there's an escalation. to tough tit for tat escalation and that could that could have a. more profound a negative impact in a direction where we of course are concerned about is. said we need to go to w t o rules and we of course concerned about most of them happening at the same time that will spell trouble and you say the outlook for the e.u. then is cautiously optimistic but with uncertainty i think that's exactly right yes and that was paul thompson speaking to us from unit he's european director of the

i.m.f. folks wagon says it will go into battery cell production with a partner firm in northern germany the auto giant supervisory board approved close to a 1000000000 euros for the venture on monday help with the funding could come from the public listing a b w truck division traits on which combines brands man and scalia and is scheduled to take place before summer v.w. could pocket about 6000000000 euros from the sale of up to one quarter of trade on . united arab emirates has launched an investigation into attacks on oil tankers near its waters saudi arabia says the ships were significantly damaged and claims it was an attempt to undermine the global security of crude supplies. officials from the u.a.e. said full tank cars were damaged in the attacks but it wasn't until monday that any independent information came to light. that there are a full vessels that we already know off to

a saudi one is under the flag of the united arab emirates and one norwegian. but it's still not clear what actually happened or who is behind the suspected attacks the only certainty is that the incidents have field tensions in the region. report is an important oil trading hub close to the strait of hormuz the narrow channel is one of the world's most strategically important trading routes. oil from kuwait qatar bahrain iraq the u.a.e. iran and much of saudi arabia passes along the route with about a 5th of the oil traded worldwide flowing through this narrow strait. boat stopping in fujairah port carry different flags and know the geographic importance of this location that's why the incident that happened must have been caused by people following specific goals and. thank god these goals have failed

the investigations are underway to find out who these people are and to prevent something like this from happening in future. there are several conflicts and sources of tension in the region and following the sunday attacks the price of oil and global markets spiked 2 percent a times reflecting the inherent threat to supplies and gulf states stock exchanges also took a hit falling by 4 percent in monday trading. on to something a little lighter now and a special festival that really takes the cake it was held on sunday in hong kong to coincide with the birthday of the buddha as part of the festivities contestants climb a 20 meter tower covered in sweet buns and the aim is to snatch as many of the traditional deserves as possible higher up the better the men's race was won by reigning champion quad coming getting his just desserts for the 3rd time at the real winners are hong kong's bakers who sell thousands of buns of the week.

and that's it from me and the business team berlin you can find more of these stories on dot com plus business and stephen visibility thanks for watching.

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