we start in the us where the federal reserve gave financial markets a double boost on wednesday. it says the world's biggest economy will recover much faster than it was predicting a few months ago — as vaccines are rolled out and government stimulus cash begins to flow. and it has put to rest — for now — fears that higher interest rates are around the corner. the fed has promised to keep them close to zero until the recovery is complete. michelle fleury has more. jerome powell was surprisingly forthright. he said he is in no rush to pull support from the economy. with 9.5 million jobs still missing and spending on travel and hospitality still weak, the fed chief said the bank was committed to keeping borrowing rates near zero until the job is done.— the job is done. today, interest _ the job is done. today, interest rates - the job is done. today, interest rates were - the job is done. today, | interest rates were kept the job is done. today, - interest rates were kept near zero — interest rates were kept near zero and _ interest rates were kept near zero and maintained a sizeable asset_ zero and maintained a sizeable asset purchases. these measures along _ asset purchases. these measures along with — asset purchases. these measures along with our strong guidance on interest rates and balance sheet — on interest rates and balance sheet will ensure that monetary policy _ sheet will ensure that monetary policy will continue to deliver powerful support to the economy until the — powerful support to the economy until the recovery is complete. the fed's _ until the recovery is complete. the fed's policy method of the feds policy method of changed but his expectations for future growth certainly have. as vaccination rates rise in government relief on start blowing. you central bank now predicts american economy will grow at a pace of 6.5% this year. that's up from the december forecast of 4.2%. and inflation will reach 2.4% this year above its 2% target, although that will be temporary, not blasting, according to its projections. that matters. inflation worries have been wanton centre of investors mines. mr power's message to them, the fed won't act pre—emptively on the threat of inflation as it has in the past, but he also said financial markets would be warned well in advance of any change in policy. a message that played well on wall street. stocks reverse their losses after that news conference.— losses after that news conference. ., ., conference. you can say that aaain. well that reassurance from the federal reserve certainly went down well on wall street — with the s&p 500 and the dow jones industrial average both closing at new record highs — the dow closing above 33,000 for the first time ever. that positive sentiment has continued on asian markets too. but yields or implied interest rates on bond markets have remained high — those concerns haven't gone away entirely. swetha ramachandran is an investment manager at gam investments in london. this is the first big test of the fed's commitment to its new policy framework. in your view, has it passed the test? it sounds like a recipe for a bubble. this is the scenario particularly favoured by equity markets, higherthan particularly favoured by equity markets, higher than expected growth but at the same time, a relatively explicit commerce to keep the interest rate drop favourable while the recovery is under way. there is definitely a long way to equity valuations and pockets of the market to recover to pre— pandemic levels. what this will do is accelerate that reshuffle, possibly away from high growth stocks into more reasonably valued equities which is why we are seeing more rain mainstream indices like s&p 500 outperform of late. this is the first big test of the fed since trying out this new policy framework. in your view, has it passed its own test? �* , , view, has it passed its own test? 3 , . , view, has it passed its own test? ._ test? it's still early days in the market _ test? it's still early days in the market is _ test? it's still early days in the market is trying - test? it's still early days in the market is trying to - test? it's still early days in the market is trying to get| the market is trying to get used to this because the fed has always anticipated and pre—emptively acted on inflation yesterday, was the statement of mr powell clearly was that they would now react on actual progress rather than forecast progress, including actual delivery of inflation, rather than forecast inflation. what the fed seems to have want of mind is recovery in the job market, considering the labour market, considering the labour market has a way to go to get to pre— pandemic levels, although unemployment levels are forecast to drop more than expected, still expected to end the year at 5% are so until we see consistent recovery in the data, it's likely the fed will stick to its adopted mantra of keeping rates lower for longer. tricky timing for this. a delicate moment for the $21 trillion market for us government debt. as the trouble that we've seen in recent weeks and the bond markets been quelled temporarily or for good or not at all? the yields are still pretty high. i or not at all? the yields are still pretty high.— still pretty high. i think the sianal still pretty high. i think the signal yesterday _ still pretty high. i think the signal yesterday the - still pretty high. i think the signal yesterday the fed i still pretty high. i think the - signal yesterday the fed gave, that they would explicitly signal a tapering well in advance, should quell those worries in coming weeks. this won't come out of the blue. i do think in the coming months, we will see that bond markets start to behave a bit more rationally than it has in the last few weeks.— last few weeks. just very quickly. _ last few weeks. just very quickly. for _ last few weeks. just very quickly, for people - last few weeks. just very l quickly, for people around last few weeks. just very - quickly, for people around the world, why is trouble in the bond markets like that for the rest of the world?— rest of the world? essentially because they _ rest of the world? essentially because they signal - rest of the world? essentially because they signal an - because they signal an expectation of rate and inflation increases and inflation increases and inflation eats away at the purchasing power of our money. inflation also drives away money from lower yielding assets such as government bonds which could spell trouble for the equity markets as well. the current scenario we are in, moderate inflation is good. it suggests the economy is picking up suggests the economy is picking up steam. it's not difficult considering the scale of economic data brought by the pandemic around the world and in the united states so we do need to look at this particular recovery very differently from prior recoveries. tote recovery very differently from prior recoveries.— recovery very differently from prior recoveries. we will leave it there. thank _ prior recoveries. we will leave it there. thank you _ prior recoveries. we will leave it there. thank you for - prior recoveries. we will leave it there. thank you for your i it there. thank you for your time. are us—china tensions set to ease under the biden administration — or should we brace for more years of trade war between the two economic superpowers? we could get a clearer picture later today when the two sides meet at a summit in alaska. china has been spinning it as a chance for a reset in their relationship — but there's been no clear indication president biden wants to start removing tariffs on chinese goods any time soon. lets talk to james green, a senior research fellow at georgetown university — he's a former minister counsellor for trade at the us embassy in beijing. the us washington imposed sanctions on 24 washington imposed sanctions on 2a chinese official over these hong kong laws that erode democracy. what kind of tonal message does that sand to china? , ., ., message does that sand to china? ,., ., ., , china? good morning. first, the meetin: china? good morning. first, the meeting is— china? good morning. first, the meeting is an — china? good morning. first, the meeting is an important - china? good morning. first, the meeting is an important one, i meeting is an important one, and these are individuals who spent decades in the service of country, who's worked in the foreign ministry for decades, he's worked for every chinese president and leader since jiang zemin. tony blinken as someone has worked for decades and jake sullivan is quite logged in. as to how the chinese side would take these new sanctions on hong kong officials, it's expected on the chinese side. some of the move was not only named. but also the denial in the region. as you know, us officials were just in the region. secretary of state blinken this counterpart and ongoing discussions with our friends in europe and part of the reason why the biden team is rolling out new sanctions at this time is to commence our friends and allies that this is the course we are taking.— allies that this is the course we are takina. ,, ., ., we are taking. the us and china are meeting _ we are taking. the us and china are meeting in _ we are taking. the us and china are meeting in alaska. - we are taking. the us and china are meeting in alaska. would i we are taking. the us and china are meeting in alaska. would it| are meeting in alaska. would it melt or maybe break the ice? i think the alaska location is a good one, in that it is somewhere on the way back for us officials who are in the region and won the chinese can travel to. it's pretty clear they wanted to have the first meeting on us soil and for the chinese side,, the wall street journal has a report out saying the chinese side last for a resumption of regular summit meetings and regular diplomatic dialogue. they say it's not so interested, they wanted to focus on getting our domestic house in order, but with the recovery act and also new legislation on china that is brewing in the senate, talking to friends and allies, and after making that round and getting domestic house in order, then going with the diplomatic route with beijing. it sounds like quite a list. in your view, it sounds like quite a list. in yourview, do it sounds like quite a list. in your view, do you think the days of strategic and economic dialogue really are a thing of the past, certainly between these two countries?- the past, certainly between these two countries? there will be a lot of— these two countries? there will be a lot of issues _ these two countries? there will be a lot of issues that - these two countries? there will be a lot of issues that the - these two countries? there will be a lot of issues that the two i be a lot of issues that the two countries will talk about. there are some areas where they will not be common ground for dialogue. i think the areas of shared interest will be macroeconomy, the previous piece you had on whether us economy is going, an area for fruitful discussion. i think probably some regional hotspots, maybe afghanistan and north korea but on some other trade and investment issues, there is not going to be much room for a meeting of the minds between policymakers in washington and beijing. it’s washington and bei'ing. it's alwa s washington and bei'ing. it's always been h washington and beijing. it's always been a sticky issue. and another one, trade. do you think we're going to see any change in tradition? when it comes to tariffs. these have crucified countries right across the world, notjust the us and china. i across the world, not 'ust the us and (hint across the world, not 'ust the us and china. i was pleased to see the senate _ us and china. i was pleased to see the senate unanimously i see the senate unanimously confirm this. the new representative is quite experienced but i think the biden administration is in no rush. they first want to set the groundwork at home and then take a look and see which sanctions do they want to remove or tariffs remove and which ones are, as we saw with hong kong today, which ones do they want to increase? i am readin: they want to increase? i am reading between _ they want to increase? i am reading between the - they want to increase? i am reading between the lines, | they want to increase? i am | reading between the lines, i think correctly, the problem doesn't necessarily seem to be china here. they are looking for a reset. it's the us being quite intransigent and truculent?_ quite intransigent and truculent? ., ,, ., truculent? from the us point of view, truculent? from the us point of view. there _ truculent? from the us point of view, there has _ truculent? from the us point of view, there has been a - truculent? from the us point of view, there has been a shift - truculent? from the us point of view, there has been a shift in l view, there has been a shift in the mindset of almost every single policymaker and politician, that ends need to change. you can hardly find an issue in which any democrat or republican agrees, except the way we are interacting with china and what the trump administration has put in motion, the biden administration will compete with better bureaucrats and working with allies, but in the end it will be a policy that has a number of restrictions in place, with certain economic activities, and our interactions with the chinese government. we interactions with the chinese government-— government. we will leave it there. thank _ government. we will leave it there. thank you _ government. we will leave it there. thank you for - government. we will leave it there. thank you for your i government. we will leave it i there. thank you for your time this morning. let's stay with us china relations because us regulators have begin proceedings to revoke the operating licenses of three chinese owned telecoms firms. sharanjit leyl is following the story from our asia business hub. it is essentially the american telecom regulator, starting procedures to band china's unicom us unit into other telcos providing services there. it was actually started last december. the federal communications commission wants to prevent these chinese telcom firms from providing your stellar communication services on national security grounds because it believes they are controlled by the beijing government and in fact according to the fcc�*s acting chair, these companies are indirectly owned by the chinese government, and there is a strong reason to believe that they will have to do comply with a request from the chinese government to advance its goals and policies. 0n government to advance its goals and policies. on this seems a little late because some of them, they've actually been providing us international telecom services and had authorisation to provide services for two decades. china unicom in particular was singled out by the us justice and commerce department which said innerfiling last year its operations provided opportunities for economic espionage, theft of trade secrets in the pension —— potential for disrupting us communications. china unicom said then that it fully complies with us rules and laws. we have the integrity of us phone neck works, it's become a big focal point. it's one of the many bones of contention as you are discussing between the world's two largest economies as they jostle over a whole range of issues, things like network security, trade and responsibility for the spread of coronavirus.— of coronavirus. absolutely, thank you _ stay with us on bbc news, still to come: conspicuous consumption. why recycling more of what we use has become a global necessity. today we have closed the book on apartheid, and that chapter. more than 3,000 subway passengers were affected. nausea, bleeding, headaches and a dimming of vision, all of this caused by an apparently organised attack. the trophy itself is on the pedestal in the middle of the cabinet here. this was an international trophy and we understand now the search for it has become an international search. above all, this was a triumph of the christian democrats i of the west, after- reunification as quickly as possible, and that's. what the voters wanted. this is bbc world news. the latest headlines: the european union has threatened to halt exports of coronavirus vaccines amid a shortage of doses. britain has denied it's blocking shipments. tanzania's president, john magufuli, has died at the age of 61. the european union's medicines regulator is expected to deliver its findings today into the safety of the astrazeneca vaccine. germany initially dismissed concerns from some european countries saying there was no evidence to support a link between the vaccine and blood clots. but earlier this week itjoined several other governments which have temporarily suspended use of the vaccine. 0ur berlin correspondent jenny hill explains why the german government took the decision and what the consequences might be. is germany playing it too safe? infection spreading faster, cases arising in newly reopened kindergartens, nursery workers have been pushed up the vaccination priority list. isabella and her staff were offered the astrazeneca jab. translation: i offered the astrazeneca 'ab. tuna/momi translation: i think it's devastating. _ translation: i think it's devastating. 30 - translation: i think it's devastating. 30 of - translation: i think it's devastating. 30 of us - translation: | think it'sl devastating. 30 of us were vaccinated on sunday, two others would have had it today but that was cancelled. even here, my colleagues do not want to have it now.— to have it now. germany dismissed _ to have it now. germany dismissed concerns - to have it now. germany. dismissed concerns about astrazeneca and blood clotting from other countries, it has used 1.6 million doses, but thenit used 1.6 million doses, but then it emerged 7 million people here —— seven people here have developed a rare blood clot on the brain following the jab. they said they would expect one case. the government here argues it would be irresponsible not to pause the programme. translation: in the programme. translation: , , translation: in my view, it is better if we _ translation: in my view, it is better if we suspend _ translation: in my view, it is better if we suspend for - translation: in my view, it is better if we suspend for a - translation: in my view, it is better if we suspend for a few l better if we suspend for a few days, get a better view of the situation and talk to our european partners, then we can say with certainty how we will proceed. say with certainty how we will roceed. , ., , proceed. some in germany were not keen on _ proceed. some in germany were not keen on astrazeneca - proceed. some in germany were not keen on astrazeneca in - proceed. some in germany were not keen on astrazeneca in the i not keen on astrazeneca in the first place in part because the government initially blocked its use in older people. but this country, which has given just 8% of its population a first though is the vaccine is relying on it. translation: ., ., translation: there are always risks. translation: there are always risks- you _ translation: there are always risks. you don't _ translation: there are always risks. you don't know— translation: there are always risks. you don't know how - translation: there are always risks. you don't know how manyj risks. you don't know how many people will die now because they are not vaccinated. translation: they are not vaccinated. tuna/mom- they are not vaccinated. translation: , ., ., ., translation: they have got to check it, the _ translation: they have got to check it, the government - translation: they have got to check it, the gov