And early noughties. Now this comes hot the heels of Dissapointing China Trade data on tuesday showing exports sank at their fastest rate since the pandemic. Global demand for chinese made goods is falling, down more than 14 in the year tojuly. But domestic demand is down too with imports also falling by more than 12 in the same period. Joining me now is janet mui, head of market analysis, Rbc Brewin Dolphin where is this deflation coming from . Good morning, thanks for having me. So, this Deflation Data is mostly coming from food. And also commodities prices like raw materials, energy etc. Actually, if you look at the underlying deflation, things Like Services and tourism and leisure, hotels. Actually, they are up, the Core Inflation is up from 0. 4 to 0. 8 . But obviously, its still pretty muted. Overall, it is a concern that china prices are contracting and it could be lasting for a while as well. , ~ , could be lasting for a while as well. , ~ ,. ,. , well. How likely is it that china is auoin to well. How likely is it that china is going to be well. How likely is it that china is going to be trapped well. How likely is it that china is going to be trapped in well. How likely is it that china is going to be trapped in a going to be trapped in a deflationary spiral, the likes of which we saw 20 years or so ago with japan . I which we saw 20 years or so ago with ja an . ~. ,. , � japan . I think we currently dont see that risk. Japan . I think we currently dont see that risk. We japan . I think we currently dont see that risk. We dont japan . I think we currently dont see that risk. We dont think japan . I think we currently dont| see that risk. We dont think that kind of inflation will extend for long period of time. China is undergoing a recovery after the on going. Admittedly, the reopening isnt anywhere near as strong as anyone anticipated but it is a process that china needs to go through. Right now, what we are observing in china is similar to what happened in the uk or the us, people are switching from spending on goods during the pandemic to services when everything reopens. As i mentioned, things like hotels, travelling, going to restaurants, those prices are actually going up. This is actually better than people anticipated. The weakness is actually in food prices and also goods prices will stop people spending less on Consumer Goods and clothes, electronics for instance. Authorities have pledged vows of support and stimulus for the economy but so far not a huge amount of action on that front. In the light of the latest data that we had today on inflation and the other day on trade as well, how likely do think it is that that position is to change . I it is that that position is to chan. E . ~ it is that that position is to change . It is that that position is to chance . ~ ,. ,. , change . I think the stance from the Chinese Government change . I think the stance from the Chinese Government is change . I think the stance from the Chinese Government is that change . I think the stance from the Chinese Government is that there i Chinese Government is that there will be some stimulus coming through but so far there is no grand announcement yet. I think this data definitely puts pressure on the Chinese Government because once we have this deflation mindset, thats pretty dangerous. As people think that prices will go down, they delay spending. I think this is a wake up call for the Chinese Government. Having said that, the traditional stimulus measures, things like boosting housing, property, infrastructure, those areas are very high debt level at the moment and thats why the Chinese Government has been very cautious. But i do expect they will eventually act on it at some point. It at some point. Thank you very much for your it at some point. Thank you very much for your time it at some point. Thank you very much for your time and it at some point. Thank you very much for your time and your much for your time and your analysis. Staying with china now and the growing Trade Tensions with the us. Its being reported in the New York Times that the Biden Administration is set to issue new restrictions on American Investments in certain high tech industries. Nick marsh in singapore has the story. Well, that report you just mentioned there, described it as a new front in this economic war between the us and china. I think thats a pretty good way of describing it, really. It should be stressed, though, that the white house hasnt confirmed anything yet. The chinese havent said anything on the matter either. But if these restrictions do materialise, theyre going to be a kind of new turning of the screw in terms of how far the us is prepared to go in its competition with china, if youre going to use the language of the Biden Administration. In terms of what these new restrictions are, basically, theyd ban private equity, venture capitalfirms, Financial Firms from investing in high tech sectors like quantum computing, ai, semiconductors. Of course, theyd also require american firms who are making investments in other Chinese Industries to disclose that to the us government. So basically, its about keeping a handle on the flow of american dollars into china and really trying to curb that. Now, you should expect china to react to this. Clearly, this plays in to their accusations that United States is trying to contain china unfairly, to use beijings language this time. And china also has weapons up its sleeve. Dont forget, last week, they put in Export Controls on gallium and germanium, these two key metals needed for semiconductors. But ultimately, this is the Tit For Tat Escalation between the worlds two largest economies. It shows no signs of abating. And at the end, really, its businesses who are caught in the middle who are going to be losing out the most. And it does no good for confidence, especially when it comes to investing in china, given that economic picture that we just heard about earlier. Honda 5 doubling its profits thanks to healthy sales but also a following wind with the exchange rate. A weaker yen, trading lately at about 143 yen to the us dollar, is a Boom Forjapanese exporters by boosting the amount of its overseas earnings when converted into yen. Automakers around the world were slammed by Supply Shortages because of covid related Production Delays and factory shutdowns. Those have eased, and, as our guest David Leggett from global data explains, sales and profitability are now back on track. Yes. Its a very, very big tailwind. And as you rightly point out, the whole industry is enjoying this tailwind. As the semi conductors crisis eases, all the Parts Shortages that theyve had to endure for the past 18 months are easing rapidly and theyre able to book a whole load more sales. So, that is a big top line kind of benefit thats also feeding through to the bottom line. And in addition, i think its probably fair to say that manufacturers have become quite adept at managing their model mix. So theyre really selling on high margin products. And thats true to honda as well. So if you look at the operating margin, for example, that was up to 8. 5 from 5. 8 in the same quarter last year. And honda is doing particularly well in the us where its managing to have Transaction Prices at sort of near record levels. To india now where farmers are enjoying a windfall due to high Tomato Prices. Gram for gram, tomatoes have cost more than petrol in recent times. But climate change, high temperatures and floods have wreaked havoc on the harvests and the prices of the fruit that remain is forcing them off the menu even in International Chains like subway and mcdonalds. Given that the tomato has edged out the native tamarind from Indian Cuisine as the preferred source of sourness, its become an issue of sourness, its become an issue for indias central bank. As nikhil inam dar reports. Now almost a month on, this Humble Tomato which is really a vital ingredient in the base of most indian curries is out of reach of most people here. It used to cost roughly about 0. 30 to 0. 40, but now retails at 2 a kilo in markets like these. And evidently, theres a lot of anguish as a result of that. Translation ive been selling i vegetables for 20 years, but never seen prices go so high. Demand is definitely down. People who are buying five kilos earlier are now buying two kilos in anticipation that rates will come down by 20. Now, there are many reasons why Tomato Prices have continued to go up. Unseasonal rains and extreme weather not only damage the crop, but its also made it difficult to transport it. Then, of course, there are the longer term issues, things such as lack of adequate storage and processing infrastructure. None of this can be sorted out overnight, which is why Tomato Prices are now expected to go up even further before they begin cooling down in september once the new crop comes in. People like archana, who run a Home Catering business, are worried. Theres definitely increased my budget and i cant increase the prices for my clients because, you know, we have ourfixed prices and have a fixed clientele. So it has definitely affected me because i cant make any profit, profit from that. Along with tomatoes, prices of onions and other staple in indian cooking have been going up as well. And this is a Worry Notjust for politicians, but also for indias central bank. Onions or high prices of onions have led to electoral defeats in this country, and they could also feed into higher Consumer Inflation at a time when the Reserve Bank Of India is meeting later this week to decide on interest rates. Nicola namdar, bbc news, mumbai. In other news. Shares of wework, the office space sharing company, have plunged after it raised substantial doubt about its future. The companys shares fell by close to 24 in extended trading in new york. Wework was hit hard by the pandemic as social distancing rules drove people to work from home in a trend that has continued. The uks Top Financial Watchdog will write to banks today asking for details on how and when they choose to dump their customers. The government has ordered a review in to so called debanking with evidence that its frequently done because customers have close ties to politics. The Financial Conduct Authority will be asking banks to disclose the number of accounts thay have terminated or suspended and the reasons behind those decisions. Hundreds of Amazon Sellers have complained that the online marketplace is withholding their money. Amazon said it emailed sellers about a delivery date based reserve which holds some money in case of refunds. But some sellers have written to their mps saying they cannot get the cash needed to run their businesses. And injapan, visitors are now being offered the chance to travel light to help the environment. A new pilot scheme by Japanese Airlines tells travellers that they can just pack their underwear and a toothbrush and rent all their other clothes on arrival. It means they dont have to carry a heavy suitcase, which itself is the cause of carbon emissions. Would you do that because like i think probably would. Banking stocks are in focus today with us bank equity futures falling after moodys cut its ratings on several midsized lenders. Financial stocks were also lower in europe after italys deputy Prime Minister announced a 40 windfall tax on banks that have recently profited from rising interest rates. And some movement in the Currency Markets after a think tank in the uk said the risk of recession in britain at the next general election now stands at 60 and that inflation will remain above target for the next 4 years. Thats it for me, plenty more coming up thats it for me, plenty more coming up very soon. Bye bye. This meeting injuly was supposed to be an opportunity for Birmingham City council to tell residents about their plans for a £2 billion regeneration of the area, ladywood. But it descended into farce as hundreds were locked outside. The residents feel left in the dark about the plans, especially the fact that the council has sanctioned the use of compulsory purchase orders, given the powers to force people out. I want something for my family and friends and children thats going to grow up. Where are you going to stick them . Are they going to be just pushed away and forgot . Birmingham University Lecturer laura moved to the area a few years ago. Shesjoined a campaign to give residents a voice. Its over 2,000 people affected by this. And theyjust dont was going to happen next. Its not as if the council has sent us letters, saying that our homes are at risk of a compulsory purchase order. Instead, we have had to find out from the news. Birmingham city council say area is deprived and will benefit in the long run. Its a long term programme. A 20 Year Programme for an area that most needs it. So no one is going to be turfed out of the house. There will be an offer made at some point. Hello from the bbc sport centre. Im hugh ferris. The English Premier League season hasnt started yet but theres already been a change of manager. Wolves have parted company Withjulen Lopetegui just a matter of days before their opening game. Gary oneil is expect to take over and it is the takeover of his replacement about the unusual timing. Both sites have known this day was coming. My understanding is that an agreement basically Forjulian Lopetegui To Leave was reached after one of the pre season games last month and he agreed to stay on in order to facilitate this transition in the best way possible. Itjust feels as though the club knew what position they were in. Julian lopetegui