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tv   Business Briefing  BBC News  June 5, 2019 5:30am-5:46am BST

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this is the business briefing. i'm sally bundock. to russia with love. chinese leader xi jinping meets his russian counterpart vladimir putin for crucial trade talks in moscow. out in the cold. indian firms get stripped of their special trading status with the us. and on the markets: a big bounce back after the falls we re a big bounce back after the falls were sold monday and tuesday, it would seem that investors are looking on the bright side. we will explain why.
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chinese leader xi jinping starts a three—day state visit to russia on wednesday, at the invitation of president vladimir putin. it's the second meeting between xi and putin since april — and shows the two countries are becoming increasingly close. president putin has expressed support for china's ambitious belt and road initiative — the huge infrastructure project costing more than $1 trillion and connecting 65 countries. but the two sides have more than that in common. the chinese economy is under pressure after washington raised tariffs on $200 billion worth of chinese exports in the continuing tade war between beijing and washington, and russia is also under pressure because of western sanctions
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over its actions in ukraine. so, with both leaders keen to escape these pressures, trade between china and russia hit a record high last year of nearly $108 billion. energy is especially important — with russia now china's biggest energy supplier. the power of siberia is a 4,000km pipeline project that will start delivering billions of cubic meters of natural gas to northern china this december. it's the result of a $400 billion deal between russia and china signed in 2014. dan kemp from morningstar investment management joins me now. to give us some analysis, good morning. you haven't —— you can see looking at some of the issues by russia and china have a bit in common and want to work together. absolutely. the approaches they are making to each other make perfect sense from a political perspective as an outside observer. but the key thing to remember is that russia is a much smaller trading partnerfor china and the us is. so they broke
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records last year, and i have a conversation to try and increase trade but china exported over half $1 trillion to the us, it makes it much greater. china is russia's eggers trading partner. so it's fundamentally different for the ship then china and the us. but it's clear that they're trying to do something together, the challenge for investors, how we interpret that and whether that makes a difference to the business climate and the investment climate. and the geopolitics of very important. the timing is everything. moscow is rolling out the red carpet today, for a three—day visit. right in the thick of the trade. it looks like it is at quite a critical time because the busy is not very positive between the two. that's right, if we've learned anything over the last few years it is that it is very
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difficult to predict the outcome of political events. whether it is a meeting between two leaders of the brexit vote of the trump election, and so we think about what that might mean for investors, what it might mean for investors, what it might mean for business, it's important to look at the economic fundamentals, what is happening in the global economy rather than trying to move for prediction of politics to a prediction of economics. in terms of relationship between russia and china, we have highlighted some of the key areas, energy extremely important. the belt and wrote initiatives important to china did need all players on board. russia is very important in that initiative as well stop that's right. the size of russia, the importance of that country is an energy producer is incredibly important for china and this initiative. but let's not lose sight of the fact that the relationship of the us is always going to be uppermost in china's mind given the importance of the trading with the
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ship. this is somewhat of a distraction for the but that relationship with the us and the ongoing trade battles that are really going to be important for the future of china and the us and all of us because obviously, international trade, international investment affects all businesses. i'm sure washington is watching regardless, keeping tabs on what happens in the next three days. thank you dan for coming in and being on the business briefing. we will keep you up—to—date on how that meeting goes between the two leaders. these allow pictures about what's going on in portsmouth. you can see this here is a specially commissioned ship that we were just hearing about in that report. this later today will be taking 300 vetera ns later today will be taking 300 veterans who took part on d—day who are all now in their 90s, they will be leading portsmouth on this ship that you can see here, it is coming
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into portsmouth now and getting ready for the day ahead. it will retrace their steps way back in 1944, 75 yea rs retrace their steps way back in 1944, 75 years ago when they journeyed across the english channel accompanied by the royal navy vessels and to learn wartime spitfire fighter planes. you can see it coming in, getting ready for the day ‘s events, all happening later in portsmouth, the queen will be in attendance. as an trump will be in attendance. as an trump will be in attendance as will other world leaders as they mark this very, very special anniversary. there seems to be a new front opening up in the trade war between the us and china — tourism. beijing has warned its citizens to "fully assess the risks" of travelling to america. let's go to our asia business hub where rico hizon is following the story. what they mean by that you think?m not just one travel advisory from
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china but there are two. the foreign ministry said that chinese visitors have been interrogated, interviewed, and subjected to other forms of what they call harassment a us law enforcement agencies by the culture and tourism ministry no that the high frequency of shootings, robberies and theft in the countries. these warnings come amid an increasingly bitter trade dispute between beijing and washington and tougher immigration enforcement policies by the trump administration. and these advisories will surely deepen the russia being felt by us consumers and retail companies that have relied on big spending chinese tourists to prop up their sales. there is slower revenue due to the escalating tariff battle. americanjournal of due to the escalating tariff battle. american journal of tiffany said that lower spending by chinese tourists impacted sales. you have casinos and cruise lines feeling pressure as well. they become
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increasingly reliant on wealthy chinese tourists. it is ending the preferential trade status in accorded to india. the deal allowed some indian goods to enter the us tariff free. but president trump has revoked that saying india's failed to provide american firms adequate access to its markets. from delhi, joe miller reports. 0n the outskirts of delhi, these handbags will be displayed in luxury fashion stores in malan and manhattan. the company that makes them is about to see sales in its biggest foreign market for victim to president trump ‘s policies. biggest foreign market for victim to president trump 's policies. this will be 19% over handbags, and i think there are going to be pushed
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into absolving. which in turn could lead to loss ofjobs, and the loss of livelihood for many of our workers. since 1975, indian exporters of items including leather, building materials at imitation jewellery, have leather, building materials at imitationjewellery, have benefited from lower import tariffs in the us next to a programme for developing countries known as the generalised system of preferences. but as of today, that privilege has been removed. the white house says it is retaliating after american firms we re retaliating after american firms were not granted equitable and reasonable access to indian markets. thejump reasonable access to indian markets. the jump administration has reasonable access to indian markets. thejump administration has been angered by india's reluctance to relax price controls on medical devices and its refusal to allow imports of dairy rights from animals raised on bovine feed, which the indian government says would offend the religious sensibilities of many of its citizens. policymakers in washington are hoping that indian
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firms heard by these tariffs will apply political pressure on the premise to. but reaction from a newly installed indian government has been muted and trading experts say the impact of and removed from the gsp won't be felt by the vast majority of firms in the country. on a macro level we can see it will be minimal. we are talking all of a tariff of 260 million. it is not even 0.01%. it is not so significant. from bear hugs and the rose garden to warm words on twitter, india has been spared the worst of president trump ‘s wrath. despite talk of economic cooperation, competing interests back home might eventually force the two lea d e rs back home might eventually force the two leaders to choose different parts and trade. —— path on trade.
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we saw a big bounce back on wall street, on the back of the chairman of the us central bank signalling and openness to rate cuts. that is what the markets have wanted to hear. they are now pricing and interest rate cuts in the coming months. that is your business briefing. three in five mps say their constituents are suffering because of cuts to the care system that supports people who are older or disabled in england. that's according to a poll carried out for a coalition of health organisations, who say the local authority—run care system needs to be fixed. here's our social affairs correspondent, alison holt. your here to take you to lavender
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with 0wen. jim chapman is 88 and her husband 0wen is 96. we first met them as that care home was closing because it was outdated and counsel fees didn't cover costs. i won't forget it. for the family, it is a worrying time. we thought we found the care home from heaven, the support here, the carers here and we understand the situation that they have to shut the care home. ijust hope and pray that this is going to be the last change for them. like many, the couple are caught in a confusing system. they have to move ca re confusing system. they have to move care home, theirflat is also being sold to pay for their care. they spent seven years bouncing between being state funded and funding themselves. this is your new home. it's a caring rollercoaster, it is a financial rollercoaster and it takes
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it out of you. families need to know what to expect when they care for their relatives in the future. how to access care, how to access funds, it is oriented won't go away. when we next saw the couple, they had settled well but 0wen has since died. the government says it has put extra —— extra money into the care system and a published plans for reforming social care at the earliest opportunity. coming up at 6:00 on breakfast, dan walker and ben thompson will have all the day's news, business and sport. this is the briefing from bbc news. the latest headlines: after the pomp and politics — president trump is set to mark the 75th anniversary of the d—day landings — on the last day of his state visit to britain. disgraced australian cardinal george pell has launched a bid
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to overturn his conviction for child sexual abuse. now it's time to look at the stories that are making the headlines in the media across the world. we begin with president trump's visit to the uk. in a news conference with prime minister may the president suggested that the uk's national health service could be up for negotiation. the washington post explains why the brits are protective over this national institution. interesting to get a foreign angle in that story. with xi jinping set to visit russia later today to meet with putin. the moscow times reports that crimea has the fastest growing economy in russia mainly due to vast amount of investment in the region. the la times reports that tesla has made a vast sum of money by selling their so—called
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"right to pollute" credits to other car makers. the daily telegraph says that in a world—first, france will ban supermarkets and producers from destroying clothes and electronics. instead they have to give them away. and in the new york times is a report that shows how the progressive paternity leave allowances in sweden are having a positive impact on the mental health of new mothers. david buikl is back as promised. let's get going. i thought this was really interesting. to look at what the us media is saying about president trump's visit to the uk, and the washington post in particular looking at this debate about whether the nhs is going to be about whether the nhs is going to be
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a part of a new trade deal or


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