President trump and canadas Prime Minister trudeau meet as tensions rise over the regions 1 trillion pact. And a scandal deepens at another majorjapanese supplier to the worlds Biggest Car Companies shares in kobe steel plunge. Welcome to World Business report. Im sally bundock, also in the programme from online merchant to bricks and mortar the boss of alibabas european operations tells us why they are moving on to the high street. Lets focus on events near washington. The canadian Prime MinisterJustin Trudeau meets donald trump today for talks on the future of the north American Free trade agreement or nafta. It comes against a backdrop of increasing tensions over the deal. Nafta slashes tariffs on trade between mexico, canada and the us that trade is worth around 1 trillion a year. But the american leader has called it a disaster and is trying to renegotiate the terms. Hes especially annoyed about the 61; billion trade deficit his country has with mexico which he says has hit americanjobs. But canada hasnt escaped his wrath. Canadian plane maker bombardier has been hit with import tariffs of 300 on some of its planes. Thats after the us said the planes were being sold at below cost price due to illegal support from ottawa and london. Thats something Justin Trudeau denies and he will try to persuade mr trump that canada is not americas problem when talks get underway near washington. Hes also expected to say that canada is americas biggest customer. The United States lost one third of oui the United States lost one third of our manufacturing jobs since nafta. It is our manufacturing jobs since nafta. It is an unbelievable numberand nafta. It is an unbelievable number and statistics. So what are we doing . My administration policy, tax reform, trade policy, will return significant manufacturing jobs to our country. Everything is going to be based on bringing our jobs back, the good jobs, the real jobs. With me isjulian howard, from the Investment Firm gam. Good morning. It will be interesting. I would like to be a fly on the wall. I think it will be mega all could. Donald trump is focused on the big trade deficit with mexico but it affects canada as well because it is part of the 02 motive chain. Boka chain. What he wa nts motive chain. Boka chain. What he wants is the 50 of cars to have components coming from the us. Currently, 62 come from nafta. An integrated supply chain solution. The Trump Administration once more centric system. That would com pletely centric system. That would completely change that free trade deal. I would assume that canada and mexico would not be happy with that. How doesJustin Trudeau tackle the scenario especially with the situation with bombardier. He is threatening a cliff edge scenario, donald trump. 0n threatening a cliff edge scenario, donald trump. On balance, the canadians and mexicans will have to come to the table and concede to some kind of tariff all component rule aspect. The alternative is reverting to old rules and everyone loses. Prime minister trudeau is saying we are your biggest customers. In terms of negotiations, the us has the upper hand but ultimately if this fails, and after fails, the us will be the biggest loser because consumers will end up paying more for cars. Donald trump arguably came to power because us wages had been suppressed and americans were feeling poorer. Cheap imports artificially support spending. Thank you for your time. We will keep an eye on how that goes and we will keep you updated. Another scandal at a japanese supply. Kobe steel says there may have been data fabrication in iron Powder Products used in parts like automotive gears. Rico hizon is in singapore. What is going on here and kobe steel shares have been tanking . The japanese steel manufacturer, the Third Largest in the country has confirmed there may have been data fabrication in products used in parts like car gears. It admitted making false numbers to show aluminium and Copper Products had met customer specifications and this has been a major scandal in the Steel Industry and in the Global Supply chain and, with that, these news has been hammering kobe steel stock prices, plunging 20 in midday trade. Big japanese manufacturers of ca is trade. Big japanese manufacturers of cars and others have been thrown into turmoil by this revelation as they have relied on kobe steel to provide Raw Materials for their products, making it a crucial and a pillar in japanese products, making it a crucial and a pillar injapanese economy. General motors and ford and others are currently investigating this latest development. 0nline retail giants are increasingly moving to compete with their traditional bricks and mortar competitors. Amazon has setup its own bookstores and has bought the grocer whole foods. While Chinas Alibaba is also pushing into the high Street Retail sector. Emma simpson has been speaking with aliba ba about why theyre making the move into bricks and mortar stores. No one knows exactly how retail is going to look in five years. I have my view that, as Companies Use of data and technology and the capabilities we are building in different areas, i think it is going to become more and more serious for a consumer to constantly be interacting with the product. Smart phones will become more the foundation, as it is in china and europe. People will find ways to say i have immediate access to see the product physically all virtually or a combination of the two. To what extent is the rule book being ripped up extent is the rule book being ripped up and being rewritten. You have this tremendous shift from online retailers getting into bricks and mortar. How big shift is under way . It isa mortar. How big shift is under way . It is a very good news for retailers who come from the bricks and mortar space in the sense of the incredible Technological Capabilities of Companies Like mine and others, and the financial strength behind these companies to be able to invest in innovation for retail, including off line. This is a great news because most off line retailers, they have looked at online to make up they have looked at online to make upfor they have looked at online to make up for statement all negative growth. When you come at it for that angle, you are looking for a solution to a problem you have. We are approaching it as an opportunity to invest our capabilities. Unless we do these things, and discover new ways, traditional bricks and mortar is retailers will also benefit. The loa n is retailers will also benefit. The Loan Companies are helping to find ways to use the physical space in the way it helps consumers. Everyone will benefit. In other news equifax has revealed that many more uk customers were affected by a data breach than first thought. It says more than 690000 people in the uk had their details stolen in the cyber breach this year. Shares in walmart have surged to a two year high after the retailer projected online sales in 2019 would rise a0 . Wal mart shares rose 4. 7 , and the firm also said it would buy back 20bn in shares over the next two years. Lets show you how things are going in asia. Rico hizon mentioning kobe steel being the big, big loser. The nikkei having to trade water ending ona nikkei having to trade water ending on a ten he high yesterday. The euro, i will show you later, it is the best it has seen what two years after back of the move of the catalonia president not to declare it independence as yet. See you in a minute. For the first time in thirty years, raw, soft boiled and runny eggs, which bear the lion mark stamp, have been declared safe for everyone. Previously, vulnerable groups such as pregnant women, infants and the elderly have been advised not to eat runny eggs because they could contain the salmonella bacterium but new Research Shows the risk is negligible. Our Health CorrespondentDominic Hughes reports. They need for breakfast, tasty, nutritious, full of vitamin c and cheap. But a scare over salmonella meant vulnerable groups were advised to avoid having them a runny. Now the ex produced by chickens like these are been declared safe. Improvements to Animal Welfare is as hasselblad eradicated salmonella from the uk flock. Has all but eradicated. You are safe to do that. The risk of some an hour is so low you do not need to worry. Salmonella. 0n on average we consume 3a million eggs every day. And they are good for you. Full of vitamin d, eggs every day. And they are good foryou. Full of vitamin d, protein and fatty acids. 0fficial recognition for a salmonella free plot is good news for all of us. Now eggs can be enjoyed for all of us. Coming up at six oclock on breakfast dan walker and Naga Munchetty will have all the days news, business and sport. Theresa may wants five thousand new Council Houses built annually for the next five years. To find out if that can be fulfilled, brea kfasts Steph Mcgovern is in birmingham, at the biggest gathering of construction professionals in the uk. This is bbc news. The latest headlines the Spanish Government has rejected the offer of talks over the future status of catalonia. The regions leader backed off from making an immediate declaration of independence on tuesday to allow, he said, for negotiations. The hollywood Film ProducerHarvey Weinstein has denied raping three women after allegations were made against him in the us magazine the new yorker. He said in a statement he unequivocally denied the claims. At least 15 people are known to have died in wildfires in northern californias wine region. More than 150 others are missing, though that may be a consequence of the chaotic pace of the evacuations. The Us Supreme Court has formally dropped the case over president trumps travel ban on visitors from six muslim majority countries. And argentina have made it through to the world cup finals next year in their final to the world cup finals next year in theirfinal game of to the world cup finals next year in their final game of qualifying. Elsewhere, the netherlands and the usa, they have both failed to qualify. Now its time for our news review. We begin with el pais which is reporting on the declaration and subsequent suspension of independence by catalonias president carles puigdemont. Lets look at some other stories out there. The arab news is leading with britain reaffirming its commitment to the iran nuclear deal, in direct contrast to the position of the United States. City am says british Prime Minister theresa may has been dodging the question of whether she would vote for brexit if the referendum were to be held now. The guardian has a warning from the International Monetary fund that the global economys recent recovery may not last. Of course, the imf and world bank