this is bbc news with the latest business headlines for viewers in the uk and around the world. the criticism piles in from washington, brussels, northern ireland and london, but the uk government presses on with its changes to the northern ireland protocol. we talk to the business community to get its reaction. we are going on a bear hunt on wall street as the sell—off intensifies. traders brace themselves for a roller coaster as the us central bank makes its next move to calm rampant inflation. amid soaring energy prices in europe, spain and portugal cut a promising deal with the eu to help them control spiralling energy costs. and do you fancy setting up a business in estonia? the country's e—residency

programme is proving a big hit, we'll explain why. more now on the controversial move from the uk government to change key elements of the so called northern ireland protocol, the post brexit trade agreement reached with the eu in 2019. the european union is threatening legal action against the uk warning it would undermine trust and make it harder to negotiate a way out of the impasse. the eu trade commissioner, valdis dombrovskis, says the uk must still cooperate with the eu to make the northern ireland protocol it negotiated work, he was speaking to our global trade correspondent, dharshini david.

regard northern ireland protocol we clearly expect uk to respect the agreement which it has negotiated. we know there are issues related to the practical implementation of northern ireland protocol but we have come also with a number of proposals including bespoke arrangements, others practical concerns can be addressed. we know from _ concerns can be addressed. we know from our sources that a number of major countries within the eu and big companies are already what retaliatory measures they could take. is that uk taking this seriously enough? that uk taking this seriously enou~h? , ., ., ., ., enough? they do not have actual louistical enough? they do not have actual logistical measures _ enough? they do not have actual logistical measures in _ enough? they do not have actual logistical measures in stage - enough? they do not have actual logistical measures in stage at i logistical measures in stage at current stage and we would urge them to refrain from this and respect the agreements which have been reached and work on solutions on some of the concerns. so let's talk you through some of the changes that are being proposed. at present goods going from great britain to

northern ireland are subject to border checks on entry, while there are no such checks on the border between northern ireland and the republic of ireland. what the uk government now wants to implement is a two lane system. a green lane, without any checks, for goods intended for northern ireland only. and a red lane, with checks, for items that are intended to travel on into the irish republic. the eu don't like this system as they say it will be open to abuse. the legislation would also end the oversight role of the european court ofjustice as well as eu control over state aid and value added tax in the region, and aim to reduce bureaucracy for businesses. well, the criticism is coming in from all sides in politics but what do business leaders make of the proposals? roger pollen is head of the federation of small businesses northern ireland. good morning to you, roger. so

what is your reaction to what the uk government is proposing? we have spent about 18 months analysing how the protocol is working and looking at where it is not working and raising those concerns with the eu and the uk government, the americans and others and i think what is tricky here is that actually the uk government has identified and agreed with all of the areas where it is not working and it has brought forward its solutions to that. unilaterally that is where the problem lies, we would prefer to see the solutions negotiated but that is not to say that what they are proposing is very far from where we need to get to. . , . . , far from where we need to get to. . , ., far from where we need to get to. that is exactly what i was coin: to. that is exactly what i was auoin to to. that is exactly what i was going to ask _ to. that is exactly what i was going to ask next. _ to. that is exactly what i was going to ask next. you - to. that is exactly what i was i going to ask next. you describe them as solutions. are they solutions? do you like the idea of the two lanes and the european court ofjustice not having the final say when there is a dispute? having the final say when there is a disnute?— having the final say when there is a dispute?— having the final say when there is a dispute? there is too many different things _ is a dispute? there is too many different things -- _ is a dispute? there is too many different things -- too - is a dispute? there is too many different things -- too very - different things —— too very different things —— too very different things —— too very different things there. the two lanes seems to be sensible, if you have goods coming into

northern ireland are going to be consumed in northern ireland, it seems madness to put the enormous amount of paperwork and controls to carry on operating how they have been for decades i think the concept of a green lane fork dimmable things ashley, consumer goods that are coming into shops, that are coming into shops, that seems to be a very easy way to solve a huge amount of the problems and still be able to satisfy the eu that it is the integrity of its internal market is protect, so there is a common ground there. in terms of the resolution of disputes, i think that of the scenario we would shake clear of, that is a sovereignty issue and one where the various parties have dug in it a lot on that although it does seem to all to look at who is the dispute between and then who is the most appropriate to arbitrate such a dispute. but roaer arbitrate such a dispute. but roger what _ arbitrate such a dispute. but roger what is _ arbitrate such a dispute. but roger what is your hope for a resolution being found with all parties on board? when you hear from the leaders within

northern ireland, they are poles currently, the dup and sinn fein, brussels looking at legal action, what is your hope for a resolution to all of this? ~ ., ., this? we met with all of the -a this? we met with all of the party leaders _ this? we met with all of the party leaders and _ this? we met with all of the party leaders and we - this? we met with all of the i party leaders and we have met with the eu and the uk, and it seems to me actually they are all on a similar tariff. they don't may be perhaps recognise it yet but talking with sinn fein they said yes there are problems that need to be fixed stopping the dup has identified that the protocol needs to be changed so it seems to me that thatis changed so it seems to me that that is just semantics, both sides recognising that actually as things stand it is not working so things need to change and that is when you get into negotiation or discussion. the tricky thing about this is the eu and the uk seem set on a bit of a fraught path and they are talking about negotiations and so on whereas in reality i would prefer that they would sit down together and say we have got some problems here that have been recognised

universally, what are we gonna do to bring solutions to those problems rather than seeing it as a negotiation because there are parts of the protocol that are parts of the protocol that are working very well at the moment, for instance the dairy industry and meat processing which are vital to northern ireland's sector but there are parts that are working very badly. so it shouldn't be thought of as a negotiation where something needs to be removed, they should be focusing on what is not working, what solutions should be applied to that and let's get on with it because to be honest 18 months is a long time to be standing watching somebody else decide your future and not be able to seize the opportunities that pass by. and it is a very long time when you are trying to run a small business. thank you for your time this morning. it's another white knuckle ride for financial markets with traders worldwide are on edge. wall street saw a sharp sell off at the end of the trading day. we'll look at those numbers in a moment but first lets take a look at what's

happening now in asia. we are seeing losses, not heavy losses, 1.5 down for we are seeing losses, not heavy losses, 1.5 down for some we are seeing losses, not heavy losses, 1.5 down for some but this time yesterday these markets were down over 3%, we had the yen at a 20 month low versus the us dollar and if you look at wall street you can see that we have entered what is called bear territory. the tech weighted index down almost 5% with some of the big losers, among the big winners, the likes of apple, tesla and others. s&p 500 now officially in bear territory, the index falling 3.8% pushing it more than 20% below its record high at the start of the year. are north america business correspondence shall flurry has more detail. wolfe street has a nasty hangover from the and expect the high inflation report showing consumer prices rose 6%

stopping the heavy selling midday by monday's natural market closed the s&p 500 was officially in a bear market after falling officially in a bear market afterfalling more officially in a bear market after falling more than 20% lower its recent all—time high backin lower its recent all—time high back in january. lower its recent all—time high back injanuary. the nasdaq and the dow also sold off sharply. here is chief investment strategist at cf ra research. the markets activity on monday was simply a follow—through from — was simply a follow—through from the _ was simply a follow—through from the shop that it received a friday— from the shop that it received a friday from a hotter than expected cpi reading another concern — expected cpi reading another concern is that maybe in tuesday's ppi report we could also _ tuesday's ppi report we could also be — tuesday's ppi report we could also be surprised which would then— also be surprised which would then force the fed to take a much — then force the fed to take a much more aggressive approach to tightening monetary policy. i've asked the question every investor asks when they find them sides and a bear market, when will they get out of it? there have been five times since — there have been five times since the _ there have been five times since the 1940s that we have had both— since the 1940s that we have had both a bear market and a recession— had both a bear market and a recession and everyone of those times— recession and everyone of those times we — recession and everyone of those times we had the year—on—year % change _ times we had the year—on—year %

change in — times we had the year—on—year % change in headline cpi extends 6~5%_ change in headline cpi extends 65% as — change in headline cpi extends 6.5% as we have today. to change in headline cpi extends 6.596 as we have today. to tame inflation the _ 6.596 as we have today. to tame inflation the us _ 6.596 as we have today. to tame inflation the us central- 6.596 as we have today. to tame inflation the us central bank- inflation the us central bank had signalled plans to raise interest rates in half—point increments but with data showing prices continuing to move in the wrong direction, speculation is growing that america's of reserve is about to go bigger with a 3/4% break height. —— rate hike. joining me now is gervais williams, head of equities, premier miton. are you getting much sleep? where are you at the moment? because we could see this coming, couldn't we that markets would get pretty wobbly about the economic data coming out. ., �* , out. that's right, globalisation - out. that's right, globalisation is l out. that's right, - globalisation is really out. that's right, _ globalisation is really defined by abundant supply and every time there was a setback that was fine because we could just inject extra demand and that led to an economic recovery and extra turnover and markets appreciated stopping the problem with the pandemic and

the ukrainian conflict is that we have reduced supply, meanwhile we have still injected extra demand through quantitative easing and we have got excess demand now and the only way you can address excess demand is to raise interest rates, reduce corporate profits and ultimately lead to potentially a recession. that seems to — potentially a recession. that seems to be _ potentially a recession. that seems to be the _ potentially a recession. that seems to be the word - potentially a recession. that seems to be the word that is cropping up all the time at the moment with the cost of living crisis affect so many globally, but what about the fed? they start their meeting today, tomorrow they conclude, we will have a press conference, jerome powell will speak and his every word will be weighed. summer saying we are looking at interest rates in the us going up interest rates in the us going up by interest rates in the us going up by 0.75%. interest rates in the us going on by 0-75%-_ up by 0.7596. they are still at 196 at the _ up by 0.7596. they are still at 196 at the moment _ up by 0.7596. they are still at 196 at the moment just - up by 0.7596. they are still at 196 at the momentjust like i up by 0.7596. they are still at. 196 at the momentjust like the 1% at the momentjust like the uk, the eu is at minus not .5% so that is an extraordinarily low interest rate, so while we will see interest rate rises, unfortunately to some degree they can go up quite a long way from here. it is notjust about an extra half a percent or three quarters a percent, there

will probably be further interest rate rises later this year as well.— interest rate rises later this year as well. but will it work? it year as well. but will it work? it certainly — year as well. but will it work? it certainly will _ year as well. but will it work? it certainly will tame - it certainly will tame inflation but probably at the expense of unfortunately companies coming under enormous profits and having to cut costs, staff in particular. it may also mean that some businesses go bust so we get rising unemployment. government themselves will come under enormous financial pressure has. not only have got an enormous amount of debt but they have to pay unemployment which will be increasing costs going forward it is a real tension for all parts of the economy going forward. it certainly is. thank you, we will see you again soon. let's get some of the day's other news. cryptocurrencies have not been immune to the market selloff — on the contrary bitcoin fell as much as 14% on monday after a major us cryptocurrency lending company froze withdrawals and transfers. celsius network said it was doing so because of what it described as extreme market conditions. now unlike in most other major economies inflation in india

has eased slightly in may, to just a fraction over 7%, from an eight—year high of 7.8% in the previous month. however, it still stayed above the reserve bank of india's upper tolerance limit for a fifth month in a row. we were just talking there about the impact all of this current economic turmoil is going to have on the labour market. today we will get the employment numbers out in the uk injust a employment numbers out in the uk in just a few hours. while the labour markets in the us, france and other european countries have managed to get back to work and even expand compared with pre—pandemic levels, the uk's workforce is getting smaller, which has meant businesses are finding it hard to filljob vacances and wages are rising as a result. fewer workers in the market is also putting a squeeze on the wider economy. joining me now is neil carberry, chief executive, recruitment & employment confederation. good morning, nice to see you

again. first of all, what will these employment numbers look like do you think, when we get them in an hour and a half seller we are still expecting the numbers this morning to be quite strong and julie. certainly vacancies are outstripping people looking for work and as you pointed out, one of the big challenges in the uk labour market as there isn't a lot of loose labour looking for work and that means that companies are struggling to grow where they are still seeing demand.— to grow where they are still seeing demand. when we talk about the unemployment - seeing demand. when we talk- about the unemployment numbers being strong, this is always presented by the government as being a great positive, but how positive is it, given the situation the uk economy is on at the moment? irate situation the uk economy is on at the moment?— at the moment? we definitely see this as a potential - see this as a potential dampener on the ability of the economy to grow and with everything you have just been talking about around the impact of inflation and potential economic slowdown in the second half of the year, that is a concern. what is happening here is essentially there are not just employed people and

unemployed people, there are also people who are not looking and not looking for work which we call economically inactive and that is the number that is why up the beginning of the pandemic, so both employment and unemployment are lower than they were because there are a lot of people who are not looking for work or people who have left the uk completely, and that is what is the problem. and that is what is the problem-— and that is what is the problem. and that is what is the roblem. ,, ~ . problem. do you think that will chance problem. do you think that will change though _ problem. do you think that will change though as _ problem. do you think that will change though as this - problem. do you think that will change though as this cost - problem. do you think that will change though as this cost of. change though as this cost of living crisis becomes harder for households, that those who are economically inactive currently may change their mind and think actually we need to earn some pennies now? that is the 564.000 — earn some pennies now? that is the $64,000 question _ earn some pennies now? that is the $64,000 question and - earn some pennies now? that is the $64,000 question and i - the $64,000 question and i think it is too early to tell. there has been a lot of discussion about who this now an active group r, other people who have chosen to retire a bit earlier, who have got different priorities in their lives post pandemic? if so, i suspect they may come back into the labour market as inflation put some pressure on household incomes but of course if talking about people who are for instance

long—term sick leave with long covid or maybe they are caring for people who are unwell, they are unlikely to come back and thatis are unlikely to come back and that is a big variable that we don't really fully understand yet. don't really fully understand et. ~ ., don't really fully understand et. . . ., ., yet. what can the government do in the meantime _ yet. what can the government do in the meantime to _ yet. what can the government do in the meantime to try _ yet. what can the government do in the meantime to try to - yet. what can the government do in the meantime to try to help i in the meantime to try to help certain aspects of the labour market? for example, the airline industry, we had the cbi earlier this week saying more needs to be done to support businesses if we are going to prevent a recession in the uk, your thoughts? this where we have skill shortages we need to reform the school system making sure there is the right training approach, the current training with the apprenticeship as inflexible, we placed millions of teams they pay the apprenticeship levy but they don't get access to the training because of the way the training is designed. we need to improve our programmes to help people find the work and take the first

steps, big investments around that are important. we need an immigration system, that addresses the sharp shortages we face in certain parts of the labour market, and i think it's a big test for the new immigration policy that is flexible to the needs of the economy as we go into an unprecedented situation of an economic slowdown but still very tight labour market. bier? very tight labour market. very interesting — very tight labour market. very interesting times, _ very tight labour market. very interesting times, that's - very tight labour market. very interesting times, that's for i interesting times, that's for sure. stay with us on bbc news, still to come: and do you fancy setting up a business in estonia? the country's e—residency programme is proving a big hit. we'll explain why.

this is bbc world news, the latest headlines: the plane deporting illegal migrants from britain to rwanda

is set for take—off. the un says the policy will set a "catastrophic precedent". the eu considers legal action over britain's plans to unilaterally change the post—brexit, trade arrangements for northern ireland. european energy costs have risen sharply in recent months, driven first by a surge in demand following the covid pandemic and more recently by the war in ukraine. spain is one of the countries which has been hardest hit, with consumers�* bills soaring in recent months. both spain and its neighbour portugal have reached a deal with the european union on a new formula to help them control spiralling energy costs. guy hedgecoe reports from madrid. this woman is struggling, it was difficult enough for this mother of three and her husband to make ends meet before the european energy crisis. in

recent months electricity costs have soared and they have had to make some delicate choices. so we have it off from midnight to midday. we have lower tariffs then. we don't know how we will manage with the air—conditioning, we will have two watch the clock whenever we put the air—conditioning on. the rise in energy costs pushed spanish inflation to 10% earlier this year. spain and its neighbour portugal have a high dependence on renewable energy than most of the rest of europe. but that's not the only thing that sets them apart. entered interconnection capacity, in france and the rest of continental europe, both for electricity transmission lines and for gas

interconnections, this is why we are considered an island because we are separated from the main market, of europe energy system. the main market, of europe energy system-— the main market, of europe energy system. even though sain energy system. even though spain and — energy system. even though spain and portugal- energy system. even though spain and portugal do - energy system. even though spain and portugal do not. energy system. even though i spain and portugal do not rely overly on gas for the electricity they have often felt punished by high gas prices. in europe, the market prices. in europe, the market price of gas tends to affect the price of products for consumers. spain and portugal have reached an agreement with the eu allowing them to break the eu allowing them to break the link and put a cap on the reference price of gas, in theory this will benefit consumers. the spanish government has already sought to ease the pain with tax cuts and extra subsidies for struggling families. but this initiative is much bolder, capping the price of gas an average of 50 euros a megawatt—hour for the neck year. megawatt-hour for the neck ear. ., ,., ., , megawatt-hour for the neck ear. ., year. for some time gas has been 600 —

year. for some time gas has been 600 or— year. for some time gas has been 600 or 500 _ year. for some time gas has been 600 or 500 bruce, - year. for some time gas has been 600 or 500 bruce, it l year. for some time gas has l been 600 or 500 bruce, it has been 600 or 500 bruce, it has been occasionally as much as ten times the proposed. so that is a substantial savings for households and industry. the s - anish households and industry. the spanish government has estimated this gas price will cut energy bills by 20 to 40%. for millions of people in spain and portugal, it couldn't come soon enough. guy h co, bbc news, madrid. how do you attract talent to work in your country? since it launched in 2014, estonia's e—residency programme has attracted over 93,000 e—residents from 179 countries, resulting in over 21,000 new estonian companies with more than 10 billion euros in cumulative turnover to date. and yesterday, at london tech week, dominik panosch, an austria—based digital marketing specialist,

set a new world record, you recorded the fastest time ever to set up a business with a little help from the government of estonia. actually it was quite simple to walk through that process because we didn't have a lot of tech and nine minutes onstage i filled in the form and then we were waiting for another five or six minutes until it was confirmed, so after about 15 minutes we had established a company. 50 minutes we had established a coman . ., minutes we had established a coman. ., ., , company. so you had a company and e-residency, _ company. so you had a company and e-residency, but _ company. so you had a company and e-residency, but these - and e—residency, but these companies don't have to be in estonia or operate in estonia so what is the benefit to estonia?— so what is the benefit to estonia? ~ , , ., ., ., estonia? as you mentioned at the introduction _ estonia? as you mentioned at the introduction i _ estonia? as you mentioned at the introduction i am - estonia? as you mentioned at the introduction i am not - estonia? as you mentioned at| the introduction i am not from estonia but from australia —— austria, not australia. i estonia but from australia -- austria, not australia.- austria, not australia. i do apologise- _ austria, not australia. i do apologise. no _ austria, not australia. i do apologise. no problem. i austria, not australia. i do - apologise. no problem. estonia enables you _ apologise. no problem. estonia enables you no _ apologise. no problem. estonia

enables you no matter- apologise. no problem. estonia enables you no matter where i apologise. no problem. estonia i enables you no matter where you are, you can use the internet system they have to access all the benefits like, for example the benefits like, for example the company using the registration services using their service providers, for example to do administration for use you can fully focus on your business.— your business. why is it the benefit for _ your business. why is it the benefit for estonia - your business. why is it the benefit for estonia people l your business. why is it the i benefit for estonia people who use the system aren't in the country, why would they want to do that? to boost their statistics?— do that? to boost their statistics? very briefly? estonia is _ statistics? very briefly? estonia is quite - statistics? very briefly? estonia is quite a - statistics? very briefly? estonia is quite a small| estonia is quite a small country, the way to scale, you have more people coming to the country is through digitalisation, so they offer

services. digitalisation, so they offer services-— digitalisation, so they offer services. ., ., ., , services. i do apologise, we are almost out _ services. i do apologise, we are almost out of— services. i do apologise, we are almost out of time. - services. i do apologise, we are almost out of time. we | services. i do apologise, we i are almost out of time. we will have to get you back and dig deeper. hello there. we're expecting a short spell of rather hot weather across much of the uk, but not all of it, over the next few days or so. the heat and the humidity will be gradually building northwards. and that's because there's a heat wave across the iberian peninsula at the moment — temperatures in parts of spain have surpassed 40 celsius. that heat will be pushing northwards into france, and eventually into southern areas of the uk, so england and wales, by the time we get to friday when that heat is likely to peak. and that means that temperatures in london and in birmingham could get over 30 celsius on friday. but further north and west, across much of northern ireland and scotland, they'll stick in the low 20s in celsius. at the moment, we do still have this area of low pressure giving us swathes of cloud, some outbreaks of rain — most of it quite light and patchy —

across much of western scotland, northern ireland. this will help to keep the temperatures mild here, overnight tonight, but underneath the clear skies, temperatures will drop back into single figures, mid—single figures locally, perhaps, across england and wales. so a locally chilly start to the day here. but here, of course, we'll see lots of sunshine throughout the day on tuesday, some fair weather cloud building through the afternoon. further north and west, with still all of this cloud around, some outbreaks of rain for western areas of scotland. eastern areas of scotland, though, should see some sunny spells emerge at times. temperatures peaking in the southeast of england at around 25 celsius. the pollen levels, of course, in all of that sunshine, will be very high, a lot lower underneath the cloud and the rain towards the northwest, and that's where the cloud and the outbreaks of rain will tend to stay as we head through tuesday night. we'll start to see some warmer nights as we head through the rest of the week. temperatures across the board into wednesday morning should stay in double figures for the most part. still got some outbreaks of rain up towards the northern isles as we head through the day on wednesday,

lots of cloud here. again, cloudier towards the northwest. across england and wales, temperatures will start to rise into the high 20s in celsius, so 26—27 celsius for much of london. cooler the further north you go. and let's take a look at what happens for the rest of the week — so our high pressurejust gradually moves eastwards and the cold front will sink southwards, introducing that cooler—feeling air. but if we take a look at the temperatures, you can see that across northern ireland, 19—20 celsius, whereas across cambridge, 31 celsius by friday.

good morning, welcome to breakfast withjon kay and sally nugent. 0ur headlines today. the first flight taking asylum seekers to rwanda leaves the uk today — but there'll be just eight migrants on board. senior bishops say the policy shames britain. a new case for scottish independence — nicola sturgeon's to launch a second referendum campaign today. her opponents say it's not the time for another divisive vote. 0n the fifth anniversary of the grenfell tower fire, a series of memorial events are taking place, to remember the 72 people who lost their lives. and for some the wait for a safe home continues. work�*s begun on most high—rise buildings with the same cladding as grenfell,

but thousands in smaller blocks have been left in cladding limbo.