:00:00. > :00:17.latest headlines from BBC World News. Is are the latest headlines ``
:00:18. > :00:20.of those are the latest headlines. Now for the latest financial news
:00:21. > :00:23.with Sally and World Business Report. Settling on a price, Russia,
:00:24. > :00:26.Ukraine and the EU prepare to restart talks over the gas dispute
:00:27. > :00:29.as another cut off deadline looms. Metro workers strike for a third day
:00:30. > :00:32.causing chaos in Sao Paulo, just days before the start of the World
:00:33. > :00:45.Cup kick`off, despite a court declaring their walk`out illegal.
:00:46. > :00:49.Welcome to World Business Report. I'm Sally Bundock. Also in the
:00:50. > :00:52.programme: China and India are hoping to strengthen their economic
:00:53. > :00:59.ties. We'll have the latest from our team in the region. But first,
:01:00. > :01:02.Ukraine, Russia and the European Union will restart talks today to
:01:03. > :01:06.try and resolve the ongoing dispute over gas prices. Russia says it will
:01:07. > :01:09.cut off gas supplies by June 10th, that is tomorrow, if it isn't paid.
:01:10. > :01:11.This is a slight extension to the first deadline after Ukraine
:01:12. > :01:14.part`paid $786 million. The two sides differ on how much is owed by
:01:15. > :01:17.Ukrainian state energy company Naftogaz. While Ukraine says its
:01:18. > :01:20.outstanding debt as of April first was $2.2 billion, Russia's Gazprom
:01:21. > :01:27.claims it is in fact more than double that, at just under $4.5
:01:28. > :01:39.billion. The dispute could threaten gas flows to Europe. With me now is
:01:40. > :01:46.Trevor Sikorski, head of natural gas, coal and carbon at Energy
:01:47. > :01:50.Aspects. Trevor, nice to see you. It feels like Groundhog Day on a Monday
:01:51. > :01:53.morning at the moment. We talk about the new talks beginning about this
:01:54. > :02:00.dispute. But what is different of course is that over the weekend
:02:01. > :02:04.President Petro Poroshenko was sworn in in Ukraine. Also the D`Day
:02:05. > :02:09.anniversary meant there were lots of negotiations, diplomatic meetings
:02:10. > :02:15.going on in front, which President Putin was there. Do you think
:02:16. > :02:21.today's talks may be a bit smoother, there may be some goodwill on all
:02:22. > :02:27.sides, even the events of the last few days? Absolutely. I think for
:02:28. > :02:34.Russia, what they don't want to be seen is to be overly aggressive on
:02:35. > :02:38.this new government. They are looking to normalise the situation
:02:39. > :02:41.in Ukraine. To pull back already in terms of the military threat on the
:02:42. > :02:45.borders, and they are really just saying let's get active normality
:02:46. > :02:51.aspect. So this kind of holds out quite a positive out come I think
:02:52. > :02:55.for today. Certainly both sides would see it as a big failure if
:02:56. > :03:00.they couldn't hammer out some kind of agreement to keep gas flowing
:03:01. > :03:12.into Ukraine. President Poroshenko saying he is expecting to form a
:03:13. > :03:21.governing team to mediate between Naftogaz and Gazprom. The issue thus
:03:22. > :03:24.far has been that Ukraine has been unable to pay. That is where the
:03:25. > :03:32.spats have cropped up. If you look at western Europe, gas supplies from
:03:33. > :03:36.Russia via Ukraine, Ukraine find it very hard to pay its gas bills. Of
:03:37. > :03:42.course, the price is really important. You can see in the size
:03:43. > :03:46.of the difference in debt owed, what that difference in price can do.
:03:47. > :03:50.Certainly Ukraine says that they had discounted gas, which they like.
:03:51. > :03:53.Despite the political changes in Ukraine, they think they should
:03:54. > :03:59.still get discounted gas. So they really are pushing for that. Gazprom
:04:00. > :04:04.a saying they only give discounted gas to people who pay their bills or
:04:05. > :04:08.who they like a lot, who are their friends. That is when you have a
:04:09. > :04:12.more eastern looking government. That was on the table, now it is
:04:13. > :04:16.gone. You haven't paid your bills, so we have reverted to the
:04:17. > :04:21.contract. So Gazprom is very commercial, but they are trying to
:04:22. > :04:25.do it in a hothouse of politics. And that has to be resolved. Bank you
:04:26. > :04:33.very much indeed for coming in. `` thank you very much. We will keep
:04:34. > :04:36.you up`to`date. A Brazilian court has ruled that a subway strike that
:04:37. > :04:39.has caused traffic mayhem in Sao Paulo is illegal. But workers have
:04:40. > :04:42.vowed to continue with their industrial action, despite it being
:04:43. > :04:45.just days before the start of the football World Cup. The move is the
:04:46. > :04:49.latest of several strikes and protests to have hit the country in
:04:50. > :04:51.the past year. So could wage demands mar the football tournament? Katy
:04:52. > :05:04.Watson, our business reporter in Brazil reports from Sao Paulo.
:05:05. > :05:08.Emotions were running high on Sunday afternoon, union leaders rallied
:05:09. > :05:14.their members after a court ruling urging people to return to work.
:05:15. > :05:19.Unions want a pay rise of more than 12%. The state owned company has
:05:20. > :05:23.offered eight .7. Despite the court threatening them with a fine of more
:05:24. > :05:27.than $200,000 a day, for every day they continue to strike, it was
:05:28. > :05:33.pretty clear what they thought as union members raised their ID cards
:05:34. > :05:36.to vote. The overwhelming feeling here was one of anger and
:05:37. > :05:40.frustration. Despite the judge's ruling they voted to continue the
:05:41. > :05:44.indefinite strike. They say unless the government meet their demands
:05:45. > :05:48.that could affect transport on opening match day. The congestion in
:05:49. > :05:52.the city is bad at the best of times. But the last few days saw it
:05:53. > :05:57.get even worse. With huge traffic jams and bus queues, as people tried
:05:58. > :06:00.to get to work. The accusation that the unions are using the World Cup
:06:01. > :06:06.is an opportunity to extract more from the government was strongly
:06:07. > :06:10.denied. TRANSLATION: They have put the World Cup in the middle of our
:06:11. > :06:14.salary negotiations. We have been negotiating our salaries may. And
:06:15. > :06:20.because it has carried on until June, we now have the World Cup.
:06:21. > :06:23.Strike is just a latest in a string of wage demands in recent months.
:06:24. > :06:29.Rubbish collectors in Rio, bus drivers and teachers in Sao Paulo,
:06:30. > :06:34.have been pushing for higher pay as inflation pushes 6% per year. Even
:06:35. > :06:37.police walked up the job in the north`east Brazil, leading to
:06:38. > :06:42.looting, a few weeks ago. TRANSLATION: The truth is that the
:06:43. > :06:47.government has to give in. In the very short term, at least, it has to
:06:48. > :06:50.give in. After the World Cup, the conditions for negotiation change.
:06:51. > :06:54.But they aren't automatically resolved, because after the World
:06:55. > :06:58.Cup, you have another important agenda. The elections. So these wage
:06:59. > :07:02.demands won't go away any time soon. But the more pressing concern is
:07:03. > :07:06.sorting out the city's transport. With trendlines that take fans to
:07:07. > :07:15.the stadium still remaining shut, that pressure on the government is
:07:16. > :07:18.growing. Other stories: Chinese imports dipped in May, suggesting
:07:19. > :07:21.there is a weakening demand for the world's second largest economy. The
:07:22. > :07:24.country's exports rose by 7% in May, but imports fell by 1.6% on a year
:07:25. > :07:30.earlier. It meant the nation's trade surplus widened sharply to $35.9bn
:07:31. > :07:33.from April's $18.5bn. Bulgaria is to halt work on its Russian`backed
:07:34. > :07:36.South Stream gas pipeline, following criticism and requests from the EU
:07:37. > :07:40.and US. The Prime Minister said he will now have start talks with the
:07:41. > :07:42.EU over how to proceed next. The Gazprom`financed pipeline would ship
:07:43. > :07:48.gas to western Europe via the Balkans, thus avoiding Ukraine. Sony
:07:49. > :07:51.has sold more games consoles than its rival Nintendo for the first
:07:52. > :07:54.time in eight years. Sony sold 18.7 million systems in the last
:07:55. > :07:56.financial year, which ended in March, compared to Nintendo's tally
:07:57. > :07:59.of 16.3 million video games machines. Sony's PlayStation 4 has
:08:00. > :08:01.emerged as the bestselling "new`gen" console while Nintendo's Wii U, with
:08:02. > :08:13.its touchscreen controller, has lagged far behind the original Wii.
:08:14. > :08:19.Let's talk about a meeting of minds. The world's two most populous
:08:20. > :08:22.countries have vowed to increase economic cooperation follow a
:08:23. > :08:24.meeting between senior Chinese and Indian officials. In the first
:08:25. > :08:27.high`level talks between the two countries since the new Indian Prime
:08:28. > :08:30.Minister Modi took office, officials said that China and India see eye to
:08:31. > :08:33.eye on most issues. But with flagging economies to deal with and
:08:34. > :08:42.a border dispute in the Himalayan region, was the meeting really all
:08:43. > :08:45.smiles? Let's get more on this. Ali Moore joins me now from our Asia
:08:46. > :08:51.Business hub in Singapore. Nice to see you. Tell us more about how this
:08:52. > :08:54.meeting went. It certainly was all smiles in terms of the public
:08:55. > :08:59.releases, but behind the scenes we can only guess at what went on. The
:09:00. > :09:02.message from China is that they are here to help when it comes to
:09:03. > :09:05.India's economic development. In fact, the Chinese Foreign Minister
:09:06. > :09:10.has been quoted in the Indian press saying that no country can choose
:09:11. > :09:13.its neighbour, but friendship may be fostered. Which perhaps is quite a
:09:14. > :09:17.bit about the underlying tensions between these two giants. Those
:09:18. > :09:21.tensions go way back to 1962 when China defeated India in a short
:09:22. > :09:28.water war. This does seem like an attempt to reset the relationship ``
:09:29. > :09:31.border war. Money talks. Two way, as is close to $70 billion. At the same
:09:32. > :09:35.time, India's trade deficit with China has soared to over $40
:09:36. > :09:40.billion. So it is highly likely I would imagine that that will be near
:09:41. > :09:44.the top of Narendra Modi's agenda when he met the Foreign Minister
:09:45. > :09:47.later today. There is no doubt that India wants greater market access to
:09:48. > :09:51.reduce that gap. When you think about it, if India looks to China
:09:52. > :09:55.for economic tips they will be learning from the masters. China's
:09:56. > :09:59.export growth is one of the things that has helped to make it the
:10:00. > :10:03.world's second`biggest economy. Thank you very much indeed. A very
:10:04. > :10:07.quick look at markets. A positive start today, Australia closed for a
:10:08. > :10:16.public holiday. Elsewhere we see gains apart from in South Korea.
:10:17. > :10:18.That is about payrolls on Friday in the US really boosted these markets.
:10:19. > :10:21.Also the use news about China. And Japanese growth being revised
:10:22. > :10:34.upwards. Which also helped. I will see you soon. Thanks to Sally for
:10:35. > :10:38.that. We will take a look at the papers in a moment, but first: A
:10:39. > :10:41.report into the failings at a care home, where 19 elderly and
:10:42. > :10:44.vulnerable residents died, is due to be published on Monday. A coroner
:10:45. > :10:47.described Orchid View in West Sussex as riddled with institutional abuse
:10:48. > :10:48.and said neglect had contributed to the deaths of