Hong Kong shares leapt on Tuesday, clawing back a decent chunk of recent losses as fears abated that a global trade war was in the offing following Donald Trump's announcement on planned tariffs.

The Hang Seng Index jumped 2.1% to end at 30,510 points.

Meanwhile, the Shanghai Composite added 1% to 3,289 points.

BBC business editor Simon Jack tweets:

In a similar vein, Deirdre Hipwell adds:

Simon Peckham says Melrose has access to capital markets that GKN does not and thus more capacity to expand the business.

It would intend to run and operate GKN "like we would own it forever".

While Melrose is a business and "not a charity", he adds: "We try to do the right thing."

Simon Peckham is asked how Melrose can be confident of making a success of GKN if it wins control of the company.

He says it's a "balance of where the risk and reward is", adding that GKN has "underperformed so much" that there is more than enough to go for.

GKN - rather than Melrose - decided to reveal its bid and effectively agreed with it, Mr Peckham adds.

More from Deirdre Hipwell at The Times:

The Melrose executives concede that GKN is much bigger than any previous purchase that is has made.

The deal will be 20% funded with debt.

David Roper, a co-founder of Melrose, says that "an appropriate level of debt in a company is good".

He says that their takeover plan has a "prudent level" of borrowing.

Mr Roper points out that 30% of FTSE 100 companies have a similar level of debt to Melrose.

Financial Times reporter Michael Pooler tweets:

Simon Peckham, co-founder and chief executive of Melrose Industries, says that GKN is a "business that has lost its way, partly from the way that is is managed".

He says that Melrose has "an outstanding record on pension schemes" and that his firm invests in and manages business "as if we own them forever".

Ms Stevens would not confirm that GKN is talks to merge its automotive business with US based Dana.

"We have had many approaches and many conversations," she said, but added that those talks are confidential.

Mr Sclater notes that Dana is an established business which has low borrowing and invests, like GKN, for the long term.

Times M&A correspondent Deirdre Hipwell tweets:

Jos Sclater, GKN finance chief, says that Melrose would increase the borrowing of GKN, which would be a "really really bad idea for the pensions scheme".

Melrose would increase debt to give money to shareholders, creating a more indebted company to support the pension scheme, Mr Sclater says.

Image source, GKN

Parts of GKN's business in the US may have to be sold in the next two or three years if they can't be made competitive, says finance director Jos Sclater.

He says that some products have become "commoditised" and are being made in developing nations.

"Just cutting metal is not our core competence," he says.

Instead he wants to focus on "design and build". For example large structural parts of jet engines are one area that GKN intends to target.

The GKN bosses are quite disparaging about Melrose.

Anne Stevens says that Melrose has a "buy and sell short-term business model", which looks at a five-year time scale.

Jos Sclater, GKN finance director, says that Melrose just wants to "drive the margin up".

Ms Stevens says that, by contrast, GKN management will invest over the long-term - their shortest projects work over seven or ten years.

Mr Sclater says GKN has recently invested £250m in one factory alone that will produce carbon fibre parts for Airbus wings for more than 20 years.

GKN chief executive Anne Stevens is giving evidence before MPs on the Business Committee who want to find out more about a possible takeover by Melrose.

She makes some interesting comments about GKN's problems last year when it was forced to issue a profit warning after difficulties at its aerospace plant in North America.

She said that due to cost cutting, GKN's North American plant had been "destabilised" and produced products that could not be shipped. Those products were kept, but the company was "over-optimistic" that those products could be reworked and shipped to customers.

The person in charge of that operation "is no longer with the company", Ms Stevens says.

Image source, Getty Images

Sainsbury's is raising the basic rate of pay for staff working in stores by 15% to £9.20.

However, bonuses and paid breaks will be removed.

The grocer also plans to reduce the number of in-store roles to five from the current 22.

The union Usdaw gave the announcement a cautious welcome, noting that it makes Sainsbury's staff the best paid among the major supermarkets.

"While this is welcome news for Usdaw members working in Sainsbury’s we will be looking closely at the whole deal, as we understand the company are proposing some contractual changes. Consolidating pay can benefit staff, but we want to check the effects on all individual workers. We will now enter into talks with the company,” Usdaw said in a statement.

Business correspondent Theo Leggett is tweeting some of the standout cars at this year's Geneva Motor Show.

Image source, PA

Disgraced former Co-operative Bank chairman Paul Flowers has been banned from the financial services industry by the Financial Conduct Authority.

In May 2014 he was fined £400 after pleading guilty to charges of possessing drugs including methamphetamine.

The suspended Methodist minister had stepped down from the Co-op in late 2013 following concerns about expenses.

Severn Trent Water has now restored water supplies to Jaguar Land Rover and Cadbury plants in the Midlands.

The plants had to close on Monday due to water shortages caused by burst pipes in the region.

But that's not the end of our water woes, as Wake Up to Money presenter Sean Farrington tweets:

Image source, Smurfit

Smurfit Kappa is not quite a household name despite being a FTSE 100 company.

However, shares in the Irish paper and packaging maker are 18% higher this morning after it rejected an "unsolicited and highly opportunistic, external" approach from US rival International Paper.

Smurfit Kappa operates in 35 countries, has 46,000 employees and last month posted annual pre-tax profits of €576m, external for 2017.

The bid sent shares in rival firms DS Smith and Mondi up more than 5% percent.

Image source, Reuters

China's HNA Group plans to relist Gategroup, the Swiss-based airline catering firm, potentially raising up to 350 million Swiss francs ($372m) to help tackle HNA's liquidity crunch.

The aviation-to-financial services conglomerate wants to list Gategroup in Zurich before the summer and remain an anchor shareholder.

Gategroup had been listed in Switzerland before HNA bought it for $1.5bn in 2016.