In the � 90s and early noughties. This comes hot off the heels of disappointing 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 14 in the year tojuly. But domestic demand is down, too, with imports also falling by more than 12 in the same period. Earlier, i spoke to janet mui, whos the head of Market Analysis at rbc brewin dolphin, and she explained where the deflation was coming from. Deflation data, basically mostly coming from food prices and also commodities prices like raw materials, energy, etc. Actually, if you look at the underlying inflation. Things like services, things like tourism, leisure, hotels, actually they are up. The Core Inflation is up from 0. 4 to 0. 8 , but obviously its still pretty muted. So overall, i think it is a concern that china prices are contracting and it could be lasting for a while as well. How likely do you think it is, though, that china is going to be trapped in a deflationary spiral, the likes of which we saw 20 years or so ago with japan . I think we currently dont see that risk. We dont see that kind of deflation will extend for a long period of time. As i mentioned, actually, china is undergoing a recovery after the reopening. The reopening is not anywhere as strong as anyone anticipated, but it is still a process that china needs to go through. So right now, what we are observing in china is that 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. So as i mentioned, things like hotels, travelling, going to restaurants, those prices are actually going up. So this is actually better than people anticipated. The weakness is actually in food prices and also goods prices. So people spending less on Consumer Goods and clothes and electronics, for instance. Staying with china, its trade war with the united states, which is now into its fifth year, continues to rumble on. In the next few hours, were expecting a statement from the white house that will outline further restrictions on American Investments in china which could be viewed as a National Security risk. Our north America Business correspondent Michelle Fleuryjoins us. You have been covering this right from the start. How much of a Significant Development do you think we are going to see today from the white house . I we are going to see today from the white house . White house . I think there is no doubt this white house . I think there is no doubt this is white house . I think there is no doubt this is an white house . I think there is no doubt this is an escalation white house . I think there is no doubt this is an escalation of doubt this is an escalation of washingtons efforts to stop beijing from developing Cutting Edge Technology for its military. We expect the Executive Order it will ban investments by American Companies in certain Chinese Technology firms and it will cover three specific direct investments in the tech sector, we are talking about semiconductors, Quantum Computing and ai. This reflects the growing concern in washington that American Technology and know how could somehow inadvertently be used by beijing in a Military Context against the us, and so they are trying to avoid this. We have seen visits this year by antony blinken, the secretary of state, and the Treasury Secretary to beijing trying to reassure the chinese that this Executive Order will be very targeted, in other words it will not have a broader impact on the chinese economy, that that is not their goal but we know from past conversations that the chinese are sceptical and think the americans are trying to hold back chinese economic development. Hold back chinese economic development. Hold back chinese economic develoment. �. ,. , development. And our day, do you think . Is there development. And our day, do you think . Is there a development. And our day, do you think . Is there a sense development. And our day, do you think . Is there a sense this development. And our day, do you think . Is there a sense this is think . Is there a sense this is precisely what is happening . The words coming out from the likes of janet yellen suggests this is not the case or objective. It janet yellen suggests this is not the case or objective. Janet yellen suggests this is not the case or objective. The case or obective. If you take it on its face. The case or objective. If you take it on its face, us the case or objective. If you take it on its face, us officials the case or objective. If you take it on its face, us officials have i it on its face, us officials have been very careful to say that is not what we are trying to do and essentially what this Executive Order, if it is, as we expect, will do is tell American Companies what they can and cannot invest on based on National Security concerns. I think there is scepticism from the chinese and there could be more retaliatory action, we saw at the start of this month certain key minerals that are used for making semiconductor chips, they did a ban on exports in retaliation. We could see more of that. It is a delicate dance that both of these countries are trying to do, china is such a huge economy, the implications are insignificant and one of americas biggest strengths has always been the export of capital, now we are talking about restrictions. I think the administration is conscious of that, we were expecting these reels backin that, we were expecting these reels back in february, here we are in august. Clearly it took them much longer than they expected to put it together and they hope they have got it right. Together and they hope they have got it riuht. � , together and they hope they have got it riuht. H , together and they hope they have got itriuht. � , a it right. Lets up so, michelle with all the details it right. Lets up so, michelle with all the details over it right. Lets up so, michelle with all the details over in it right. Lets up so, michelle with all the details over in new it right. Lets up so, michelle with all the details over in new york. | it right. Lets up so, michelle with. All the details over in new york. All the details over in new york. Lets hope so. Lets talk about what is going on in europe. Italys banks have rebounded during todays trading session after experiencing some heavy falls on tuesday. This all came about after the government announced a 40 windfall tax on the countrys lenders. But late on tuesday, the finance Ministry Said the tax would be capped at 0. 1 of assets, without providing further details. So what does this all mean . Were nowjoined by Lorenzo Codogno, whos the founder and chief economist, at Lorenzo Codogno macro advisors. The Burden Sharing of the costs and benefits from higher rates has a habit of becoming a political issue. So why did the Italian Government decide to announce it and suddenly water it down . The decide to announce it and suddenly water it down . Water it down . The government announced water it down . The government announced the water it down . The government announced the measure water it down . The government announced the measure to water it down . The government| announced the measure to make water it down . The government announced the measure to make sure that banks actually increase the depository in line with the increase in official Interest Rates because the gap of the Interest Rate margin was widening. However, it is a bad idea, i think if there is a problem in terms of competition you should address that. We should address regulation, competition law. You should basically do the things that can actually make the market more efficient and competitive, but not taxation. Taxation in general is a bad idea. It is a bad idea now because it could actually enjoy the ability of banks to extend credit to the economy in a situation in which you need it. So that is. From a political point of view, it is a win Win Situation because they are happy to penalise the banks, and they are usually taken as a bad thing for everything. Thing for everything. Italy, like many countries, thing for everything. Italy, like many countries, is thing for everything. Italy, like | many countries, is experiencing thing for everything. Italy, like i many countries, is experiencing a cost of living crisis, so it is no surprise that the moloney administration, won a lot of political points and favourite with the public for announcing this. Meloni. Some of that goodwill eroded by coming back and saying it is only one 0. 1 of assets . Does it look cynical . One 0. 1 of assets . Does it look nical . , one 0. 196 of assets . Does it look nical . ,. ,. , one 0. 196 of assets . Does it look nical . , ~ cynical . Yes, it looks like something cynical . Yes, it looks like something that cynical . Yes, it looks like something that was cynical . Yes, it looks like something that was not l cynical . Yes, it looks like i something that was not well cynical . Yes, it looks like something that was not well prepared in advance. Effectively the investors were frantically looking at the overall amount of hit to the bank profits and it was perceived to be quite sizeable so the government basically decided to step back a bit. Again, it tells something about the degree of preparation of the measure before it, and also probably tells them it was basically driven by political consideration, not ethical consideration. I by political consideration, not ethical consideration. I wonder if were going ethical consideration. I wonder if were going to ethical consideration. I wonder if were going to see ethical consideration. I wonder if were going to see this ethical consideration. I wonder if were going to see this again. I ethical consideration. I wonder if. Were going to see this again. Thank you for time and thoughts. To india now where farmers are enjoying a windfall due to high Tomato Prices forcing them off the menu in many restaurants, including International Chains like subway and mcdonalds. These soaring prices will put pressure on indias central bank, which is making its latest Interest Rate decision later this week. As Nikhil Inamdar 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 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 staples in indian cooking have been going up as well. And this is a worry not just 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. 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 boss of travel firm tui Sebastian Ebel believes Climate Change could prompt people to take their holidays in spring or autumn and choose cooler destinations. Ebel said destinations such as the belgian or polish coast might become more popular. Greece is usually one of tuis most popular destinations, but the firm warned julys wildfires in rhodes had cost the firm around 25 million euros. Dont forget you can get in touch with me and some of the team on twitter. Im v valentine news. I will see you very soon, goodbye. The residents feel left in the dark about the plans, especially the fact that the council has sanctioned the use of compulsory purchase orders, giving people the power to force them out. I giving people the power to force them out. , giving people the power to force them out. ,. , them out. I want something from a friends and them out. I want something from a friends and family them out. I want something from a friends and family and them out. I want something from a friends and family and children them out. I want something from a | friends and family and children when they grow up. I do going to be pushed up and forgotten . This birmingham pushed up and forgotten . This Birmingham University lecturer moved to the area few years ago. She has joined a campaign to give residents a voice. ,. , ,. , a voice. There are over 2000 people affected by this a voice. There are over 2000 people affected by this and a voice. There are over 2000 people affected by this and they a voice. There are over 2000 people affected by this and they do a voice. There are over 2000 people affected by this and they do not affected by this and they do not know what is going to happen next. It is not as though the council have sent us letters saying our homes are at risk of a compulsory purchase order, instead we have had to find out from the news. Order, instead we have had to find out from the news. Birmingham city council say the out from the news. Birmingham city council say the area out from the news. Birmingham city council say the area is out from the news. Birmingham city council say the area is deprived out from the news. Birmingham city council say the area is deprived of i council say the area is deprived of benefit in the long run. This council say the area is deprived of benefit in the long run. Benefit in the long run. This is a longterm benefit in the long run. This is a longterm 20 benefit in the long run. This is a longterm 20 year benefit in the long run. This is a longterm 20 Year Programme l benefit in the long run. This is a i longterm 20 Year Programme for benefit in the long run. This is a longterm 20 Year Programme for an long term 20 Year Programme for an area that most needs it, so no one is going to be turfed out of their house. There will be an offer made at some point. For house. There will be an offer made at some point house. There will be an offer made at some point. For more stories from across the uk. At some point. For more stories from across the uk, head at some point. For more stories from across the uk, head to at some point. For more stories from across the uk, head to the at some point. For more stories from across the uk, head to the bbc across the uk, head to the bbc website. Hello from the bbc sport centre. With only days to go until the new English Premier League season theres already been a change of manager. Julen lopetegui has left wolves after a long running disagreement with the club about transfers. The spaniard initially agreed to part ways at the end of last month but stayed in charge to prepare the team for the new season while the club found a replacement with wolves saying they accepted their differences of opinion on certain issues and agreed that an amicable end to his contract was the best solution. And his replacement is expected to be gary oneil. The former bournemouth manager like lopetegui helped his team climb away from Relegation Trouble last season and is one of a number of candidates wolves considered. It boosted garry oneils standing in the game and i think wolves have decided that is the way to go. It is interesting because in recent times, with previous managers, wolves have gone down the continental managerial