>> this is "dw news," live from berlin. and i've met at tax passengers on a bus in germany. a suspect is now in custody. police say he is a 34-year-old. also on the program, both the negotiations. the european union gives a guarded welcome to britain's latest proposal on leaving the bloc.

the chief negotiator says the plan could allow for progress. germany's chancellor warns that auto tariffs could jeopardize prosperity on both sides of the atlantic. angela merkel says the eu is working on countermeasures in donald trump escalates the current trade dispute. and with a world cup out of the way, europe's football clubs bust the budget as they shop for stars. it is not just goal scores. liverpool making alisson becker the most expensive goalkeeper on the planet. i'm phil gayle. welcome to the program. we start with the knife attack that left 10 people wounded in the german city of lübeck. a man with what is described as a kitchen knife started stabbing people on a moving city bus. passengers overpowered him and held him until police arrived.

investigators say they have no evidence of a terrorist motive. the prosecutor made this statement is short time ago. >> the suspect's identity has now been established. used a 34 -- he is a 34-year-old german citizen. there are no indications that he has become politically radicalized in any way. phil: dw correspondent max zander joins us from lübeck. our police searching for any other suspects? max: well, as of now there is no indication that there were any other suspects. there is a lot of speculation. investigators have just started questioning victims, witnesses, and the suspect himself judge t. phil: and what do we know about the people who were injured? >> well, we know for sure that

at least 10 people were injured. about six were stabbed by the perpetrator. some others got injured while trying to get off the bus in a panic. the bus driver himself was also attacked by the suspect while he was trying to put out a fire that the men -- he tried to set his backpack alight on the bus before committing his violent crimes. phil: have you been able to build up a sequence of events? talk us through what happened on the bus. max: so this man actually started trying to set his backpack on fire. he had a combusted agent in there. witnesses recall smoke coming out of the backpack. the bus driver pulled over and pulled out a higher singer sure and tried to put out the fire when he was then attacked by the perpetrator, most likely with

his fists, has the bus driver recalls. then the man pulled out a knife and started stabbing people outside of the bus. the bus driver managed to open the doors before he went to the back of the bus to put out a fire. he was overpowered by passengers, and police were able to arrest him probably after that. phil: what sort of police presence is there in lübeck now? max: right now behind me, as you can see, it is pretty deserted. this is the scene of the crime. since this bus was heading to a seaside resort, part of lübeck, there is a very large police presence in lübeck and the city center itself and the seaside resort. i am on my way to this location. i saw many police. there will be thousands of people visiting tonight and

tomorrow answer the following weekend. the police presence is definitely higher. phil: pakistan are in -- max zander in lübeck, thank you so much. angela merkel has signed off for the summer with an annual press conference in berlin. speaking after a roller coaster start to her fourth term, the german chancellor denied rumors that she would step down before the end of the current parliament. she tackled major issues confronting her fragile coalition, not least how to deal with donald trump's america from and how to solve europe's migration crisis. reporter: angelu angela merkel set aside 1.5 hours to talk to the media before her official summer holidays began. it has been a turbulent political year for the chancellor, and many wonder if it would spell her downfall. many of the questions posed by the press centered on donald

trump and whether merkel could understand why he singled out germany for criticism. chancellor merkel: i took note of it. i did not look for motivating factors. reporter: merkel said she would rather deal with the issue rationally. trump's outrage at germany's trade surplus with the u.s. solely concerned trading goods, she said. chancellor merkel: if we add services to that and the profits transfer back to the u.s., and you look at the trade balance, it looks quite different. then you see there is a balance and it is slightly tipped in favor of the u.s. reporter: merkel went on to say that in the future, europe won't be able to rely on the u.s. to be the world's peacekeeper. she said that was legitimate and the u.s. would have to solve its own conflicts, including military ones.

she said she had no problem with trump meeting with president putin. russia has been under international sanctions since it and asked me a -- annexed crimea. chancellor merkel: i think it has to be normal again for u.s. presidents to meet russian presidents. 90% of the world's nuclear arsenal is held by these two countries. reporter: on migration, merkel said she remains concerned about how the issue has divided europe . chancellor merkel: it is quite obvious that this puts you are under a lot of pressure. -- puts europe under a lot of pressure. the fact is that this issue affects every eu state and it means of course that it will take longer to solve this. it shows how divided we are over the issue. i believe finding a common solution for migration is crucial to the future of the european union. reporter: not only in europe.

in recent weeks cap policy has exposed divisions that threatens to break our governing coalition. but at friday's has conference which he showed no sign -- at friday's press conference, she showed no sign of being trouble, only that she look forward to a few days rest. phil: have the same press conference chancellor merkel took aim at donald trump's plan to impose tariffs on the eu auto industry. daniel winters will have a story in the business section later in the program. the chief brexit negotiator has given a cautious welcome to the new british proposals about the country's future relationship with europe. michelle barney a says the proposals contained useful only as that provided basis for negotiations, but he said some elements of -- he criticized some elements of the white paper, which has left theresa may's government in disarray. reporter: london likes to convey an image of cool majesty, but

that is not what officials in your opinion union see. they see a british government that has not figured out how it intends to leave the eu in an orderly fashion. >> i don't think the current confusion in britain is very helpful. time is slipping away. we are all hoping that this difficult undertaking can be brought to a halfway sensible conclusion. reporter: the border between northern ireland and the republic of ireland poses a particular challenge. the british government rejects introducing border controls there and custom schedules between northern ireland and the rest of the u.k. but there must be a hard border somewhere if the eu leaves the customs union. prime min. may: northern ireland will be represented by the european commission, not its own national government, something i will never accept them and i believe no british prime minister could ever accept. reporter: the eu top brexit

negotiator says it welcomes bridges proposals, but michel barnier stopped short of optimism. >> it is also our responsibility to be prepared for all scenarios, including a new deal. reporter: ireland is already in preparation come with online advisory checklists to help companies navigate the possible impacts of brexit. phil: with much of europe sweltering under high temperatures, leaders in the arctic circle are feeling the heat. sweden is struggling with 50 separate wildfires from some of which have become too big to fight, causing major problems in a country more used to dealing with snow. climate change means this sort of extreme weather event will become more frequent. reporter: an inferno near the arctic circle. for days, firefighters have been struggling to contain a rash of

wildfires scattered over a vast expanse of sweeping from stockholm to the arctic forests. >> it feels like we work in vain . it just burns and burns. at the end, we had to back off three kilometers because it became too dangerous. reporter: multiple villages had been evacuated, and officials estimate the fire damage at around 70 million euros so far. at fault is an extraordinary heatwave that has turned much of the evergreen landscape into kindling. temperatures have climbed to 33 degrees celsius in recent days. conditions befitting italy more than sweden. and so the italian government has sent help. >> italy, biggest fleet in the world. there will drop 6000 liters of water about one second. reporter: in fact, the effort to extinguishing nordic blaze has become a european task come with

further personnel and your support sent in from france, germany, and in neighboring norway. sweden has dealt with wildfires before, but rarely over such a large area. now meteorologists are warning that with global temperatures on the rise, fighting fire in the arctic could become an annual battle. phil: italy's new populist government has informed the european union that it will to accept migrants rescued at sea and brought to its shores. that includes not only does this goodbye eight groups, but those -- rescued by eight groups, but by the eu's rescue mission operations of fear. we have this report about one success story. reporter: she lives in the mountains of italy. surrounded by nature, she makes her own goat cheese.

it is a different life from the one she lived in ethiopia. she was forced to flee the country years ago. she ended up in italy. >> i started out with other work, in just 15 goats. i found some land for the animals. now i have 180 goats. reporter: for business is thriving. her products sell well at a nearby market in the regional capital. but it is also a stronghold of the far right party which says that italy has taken in too many migrants. that view is not echoed by everyone in the city. >> i have great admiration for her story and what she is doing, and for the values she brings to the community. >> we cannot open our doors and

take in all migrants coming to europe while europe doesn't help us. reporter: she feels this kind of mindset will make it harder for new members to contribute to italian society. >> i shouldn't we try to draw the best part of each person? that will be very wise. once the migrants arrive here, we shouldn't constantly try to marginalize them. it is negative and it is counterproductive. reporter: the farmer is following her words with deeds. she has already employed a fellow migrant to help her out with the business and plans to hire two more. phil: a new report has highlighted the scale of forced labor around the world. the global slavery index estimates more than 40 million people worldwide were enslaved in 2016.

the phenomenon is present in countries around the world. the report named north korea has the worst offender. reporter: millions of men, women, and children are subjected to forced labor, forced marriage, or some are -- or exploitation. some are sold into slavery. north korea top the list for more than 10% of the country is forced labor. >> trump praise kim jong-un. how he say he is honored to meeting this dictator and is oppressed by how kim jong-un is running the country. it is like you are meeting hitler and you say i'm impressed by how you are killing jews right now. reporter: the index lists 79 countries in which more than 40 million people are trapped in modern slavery. germany is among them.

>> there are 160,000-plus slaves in your agriculture industry. everywhere in your domestic workers. where you are most is by the products you buy. reporter: the report says that developed countries import hundreds of billions of dollars of the goods every year produced with slave labor. phil: this is "dw news," live from berlin. still to come, stage 13 of the tour de france, and exciting sprint to the finish line. first, some of the other stories making news around the world. donald trump's former lawyer michael cohen secretly recorded his client discussing payments to a former playboy model. caret mcdougal says she -- karen mcdougal says she had an affair with the president in 2006, he has denied it.

the recordings made too much before the 20 16th election, were seized by the fbi in a raid on cohen's office earlier this year. rescue boats in the state of missouri have recovered for bodies from a tourist boat that sank yesterday. i went his video shows -- eyewitness video shows the both crossing the lake and only one of them made it back to land. the death toll stands at 17. palestinian militants have shot dead an israeli soldier on the gaza border of israel responded with airstrikes at cost targets -- hamas targets on the gaza strip. the attacks have triggered renewed fears of another escalation between israel and hamas. the united nations has urged both sides to show restraint. business now. let's return to angela merkel and what she had to say about the brewing trade face off with the united states. daniel winters here. daniel: i'm sure i don't need to provide you who is at the center of these comments.

u.s. president donald trump has been stoking the trade dispute with the eu and china today from signaling he is ready to slap tariffs on all chinese imports, and accusing the eu and china manipulating the currencies. he even found time to criticize the u.s. central bank monetary policy. german chancellor angela merkel that the eu is determined to counter any u.s. tariffs, as mrs. merkel told reporters in berlin. the situation is very serious. reporter: tensions continue to run high in the german car industry with the u.s. government this week repeating threat to impose high import tariffs on cars and components. germany's carmakers association was quick to underline the importance for the u.s. economy. german manufacturers and suppliers operate over 300 plants there, creating over 100,000 jobs in production alone. german chancellor angela merkel warns that the tariffs not only threaten global growth

prospects, they also contravene wto procedures. "the eu should call a spade a spade, mainly that we think it is incompatible with the wto rules. we don't want these tariffs. we believe we harm each other, not only that we are harmed in the european union, but that this can have much wider applications." the eu president travels to washington for talks on trade next week. if a solution cannot be found, the eu says it will consider further countermeasures. daniel: some eu retaliatory tariffs on american products came into effect the start of this month. for jack daniels, the united states' biggest whiskey exporter, it may mean hiking prices in europe. our correspondent clare richardson went to lynchburg, tennessee, to get a taste of the problem. clare: american whiskey in the firing line. now that the european union has hit back against u.s. president

donald trump with tariffs of its own, companies like attack daniels are forced to make sacrifices that could hurt their bottom line. i am in lynchburg, tennessee, home to jack daniels, the top was he exporter in the united states. they said they plan to increase their prices for consumers in the european union, and they are worried that people choosing what to drink will forgo the expensive american products and pick something cheaper. tennessee strongly backed trump in the 2016 elections. that is likely the reason that distilleries here are feeling the brunt of your's was -- europe's response. as brusels turns up the pressure on places the republican party needs to an upcoming elections. now the few hundred residents of lynch for cap found themselves in the center of an international trade dispute. >> if the tariff situation is going to affect the bottom dollar of jack daniels getting the product anywhere outside of

tennessee or outside of the united states, that would raise their cost and eventually could affect lynchburg. clare: the biggest fear is what unhappy customers in europe would mean for jobs here in tennessee. >> immediate probably will be then having to pass that cost on to the consumer. four people -- poor people in germany would have to pay more for whiskey. [laughter] sorry. clare: for europeans, a price on, and for jack daniel's, a painful hangover from donald trump's tariffs. daniel: donald is threatening to impose tariffs on all chinese imports. let's get more with jens korte on wall street. how are markets taking the comments? jens: first of all, the tariffs are not implement it yet, and it might take some months, if they

can at all. we might see certain industries and companies reducing pressure on the car industry, other multinationals like caterpillar, boeing, where we see stock prices falling a bit. overall, the market is taking it rather easy. we just finished the third consecutive week where blue chips saw gains, even if the market was a tiny little bit under pressure on friday. overall, the market really takes it rather cool at this poi. daniel: china can't simply impose counter-tariffs as they have been in the past because they don't import enough u.s. goods to match what the u.s. is doing. how could they respond? jens: if you look at the figures, the u.s. exports goods to china in $130 billion and the import in the amount of $500 billion. on this site, the u.s. seems to

be in the driver seat. but china has possibilities to counter. one would be if china devaluates its currency. if the yuan is going to fall further -- actually, it dropped to the lowest in about two years, so that to a certain degree would level out the higher tariffs. they could stop buying u.s. treasuries from they could make life miserable for u.s. corporations being active in china. there's a whole lot that china could do to counter the tariffs. daniel: thank you. it's been a pleasure. that's all from me. back to fill in the death -- p hil and the malaise in german football. phil: it goes on. the german football federation, defending world cup champions germany were unceremoniously dumped out of the tournament, and the criticisms continue.

this time from a former national team great. reporter: it all looks so hopeful 14 germany when they were at their training camp -- four team germany when they were at the training camp for the world cup. they were the top of the world and had no idea they would come crashing dn. the manager had this to say. >> right now it seems to me that they don't have a clear-cut professional way of dealing with crises, and i'm not surprised. the dfb is full of amateurs. i'm not convinced that at the end of the date the right solutions will be found with these people running things. reporter: the ball is in the dfb's court, should they choose to play. one thing is certain, germany cannot afford another tournament disaster, because then no one will be safe. phil: with the world cup out of the way, top clubs are racing to sign the tournament's standout

players. that usually means attackers. this year it is a goalkeeper who has gone into the record books, joining english site liverpool for an eye watering fee. reporter: alisson becker is now the world's most expensive goalkeeper. liverpool paid 75 million euros for the 25-year-old. the brazilian international did not concede any goals in 17 of his 87 appearances for roma last season. the transfer fee breaks a record held by the time legend jujube of. in 2001, he was bought for the record price tag of almost 53 million euros. compare the prices paid to make , it pales in comparison with the most expensive goal scorers. liverpool coach will be helping

allison -- hoping alisson can bring a level of consistency in the premier league campaign. phil: now to cycling, and stage 13 of the tour de france, team sky continues to rule. peter sagan did win the day in a dramatic finish. the almost 170-kilometer-long route. meanwhile, the overall leader continues to fight off allegations that his team's performance is a little bit too convincing. reporter: stage 13 was considerably flatter than the previous day in the alps with the route favoring the spenders. four breakaway riders set the pace. with six kilometers remaining, he was gobbled up. philippe launched an attack inside the final kilometer. the frenchman was caught with less than 300 meters to go.

slovakia's showed his strength from winning this time by half a wheel. alexander christoph took second, ahead of the french cyclist. >> very happy to have won today. thanks to all my teammates. they did, again, very good job. reporter: the team sky rider held onto the yellow jersey. phil: that is it. you are up-to-date. we will have more for you at the top of the hour. as always, the website, dw.com. have a good day. [captioning performed by the national captioning institute, which is responsible for its caption content and accuracy. visit ncicap.org]

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twenty twenty ninety live. from the for some of these run across some real worries president. it's always a one of the most. this this is security. videos us ahead of him beating out has has since. the british virgin islands region may measures similar