moving markets: wall street closes on record highs after fed chairjerome powell says he sees progress on inflation. big bonuses are back as banks in the city of london scrap limits on staff payouts. but do they reward performance or encourage recklessness? and germany's green economy: we take a look at the impact of legalisation as cannabis social clubs come online. welcome to business today, i'm sally bundock. we start in the united states, where stock markets jumped on tuesday with the s&p 500 and the nasdaq both closing on record highs. propelled by the comments of one man — fed chairjerome powell — as investors watch every word for a when the us central bank will start cutting

the cost of borrowing. and they liked what they heard. speaking at a central bankers forum in portugal, he said: and that the us is: which may not sound like much, but was enough to see the s&p 500 nudge up to a record high close. that is the number right there. let's unpack this with a regular. joining me now is jane foley, head of fx strategy at rabobank. good morning. the markets enjoying the right at the moment and as we mentioned, hanging onjerome powell must make every word but he did not say much, did he? what are your

thoughts? say much, did he? what are your thou~hts? ., . thoughts? you are right, he noes on thoughts? you are right, he goes on to _ thoughts? you are right, he goes on to talk— thoughts? you are right, he goes on to talk about - thoughts? you are right, he goes on to talk about the i thoughts? you are right, he i goes on to talk about the need for the central bankers to see more data, data that indicates the us economy is slowing, so from that point of view if you put everything together, he was still balanced, perhaps it was anything new but it was those keywords in the key phrase that you mentionjust now keywords in the key phrase that you mention just now about this inflation that really got the market excited. you can read into that, an indication he does want to cut interest rates and perhaps as soon as september but what we need to see before he can do that, and he made this clear, is more economic data indicating that inflation is coming down and the new economy, particularly the new economy, particularly the labour market, is loosening. we do get important us data this week on friday and the markets will also be hanging on that number really keenly. hanging on that number really keenl . ~ . ., ., keenly. what are your thoughts? are ou keenly. what are your thoughts? are you betting _ keenly. what are your thoughts? are you betting on _ keenly. what are your thoughts? are you betting on a _ keenly. what are your thoughts? are you betting on a septemberl are you betting on a september cut? , . u,

cut? yes, we are indicating that the — cut? yes, we are indicating that the fed _ cut? yes, we are indicating that the fed is _ cut? yes, we are indicating that the fed is likely - cut? yes, we are indicating that the fed is likely right i that the fed is likely right now to cut in a september but also in december but to be even more confident on that we do need to see the data, so first of all it is the payroll report of all it is the payroll report of the labour data on friday and beyond that it will be more inflation numbers, the cpi inflation numbers, the cpi inflation but also the pc inflation but also the pc inflation number which is the preferred measure. they have got to behave. within that, and this is common to the uk and europe as well, we need to look at that service number because service sector inflation has tended to be sticky and that is because if you run a services sector business, labour is your most expensive cost. because of shortages, that tends to be sticky, so that is a very crucial number.- sticky, so that is a very crucial number. before i let ou crucial number. before i let you go. _ crucial number. before i let you go. this _ crucial number. before i let you go. this is _ crucial number. before i let you go, this is an _ crucial number. before i let you go, this is an impact i crucial number. before i letj you go, this is an impact on the value of the us dollar but

i wanted to get your take on the yemen in particular, the japanese yen because it has been languishing. there is a lot of speculation about what the authorities may or may not do about this, your thoughts? we have the government warning that perhaps more intervention could be on the cards soon because we are approaching these 38 year lows for the yen against the us dollar. intervention in the short term does not tend to turn our currency pair around unless the economic fundamentals are pushing on the same direction, and overnight we had a weak economic data forjapan so it does seem as if the group one wolverines after a while. thank ou ve wolverines after a while. thank you very much _ wolverines after a while. thank you very much indeed. - wolverines after a while. thank you very much indeed. giving i wolverines after a while. thank| you very much indeed. giving us your take on what is happening and moving markets and currencies as well. staying in the us, and to one of the companies driving positivity on the markets — tesla.

shares in the electric car giant surged io% — hitting the highest level for nearly 6 months — after billionaire elon musk�*s firm reported better—than—expected vehicle delivery numbers. with more details, here's our north america business correspondent michelle fleury in new york. after going through a slump, tesla may have finally turned a corner thanks to demand for its model three sedan and its model y suv. the company delivered nearly 444,000 cars in the last three months, a figure that is up sharply from the previous quarter, although it's still down nearly 5% from a year ago. as a result of this better than expected performance, tesla retains the title as the world's top seller of electric cars. meanwhile, there was also good news out of general motors. the detroit auto—maker said electric car sales hit a new record, but those double digit gains still account for only a small percentage of its overall business. nonetheless, the upbeat news is being seen as a positive sign at a time when us

car—makers face increased competition from the likes of chinese firm byd, as well as lukewarm consumer demand for electric vehicles. staying with market movers and focusing on pay now, with bankers bonuses back in focus here in the uk. certainly in london. this week, morgan stanley becomes the latest wall street giant to scrap limits on bonuses for its london staff, following rivals goldman sachs and jp morgan. it comes after the uk abandoned eu rules limiting bonuses to twice basic salary late last year. the eu brought in the cap to discourage excessive risk taking but critics argue it simply made banks pay bigger basic salaries. there is always a way around it. to discuss the costs and benefits of bumper bonuses, i'm joined by geraint anderson, ex—stockbroker and author

of cityboy: beer and loathing in the square mile. lovely to see you again. what do you think, it is a good thing or a bad thing that bonuses are back? i thing or a bad thing that bonuses are back? i think it is a bad thing- — bonuses are back? i think it is a bad thing. i— bonuses are back? i think it is a bad thing. i think _ bonuses are back? i think it is a bad thing. i think it - bonuses are back? i think it is a bad thing. i think it is i bonuses are back? i think it is a bad thing. i think it is a i a bad thing. i think it is a return to the old days when dinosaurs like me were bankers, a time described by gordon brown as the age of irresponsibility. the reason is you have to understand the mentality of bankers and that is the bonus means everything, notjust is the bonus means everything, not just the is the bonus means everything, notjust the next ferrari you can buy, it is a market assessment of your value, and you will do absolutely everything to increase that because if someone gets twice you have got, that is the market deciding he is twice the man you will ever be, and that mentality was pervasive in the 2000 and that is what helped lead up to the financial crisis because it does encourage

reckless gambling. the reason is because the rias and asymmetrical risk, if you get a massive bonus you get to keep most of it, some may be clawed backin most of it, some may be clawed back in the profits, and therefore if you do not — if your gamble comes back, you get a huge amount of money. if it goes wrong, it could go — no money is removed from your wallet and that is asymmetrical risk, the core of this problem. do you not think that the culture has changed? we remember, we have seen the movies and images of leonardo dicaprio now heads and others of our youth to be but then we have the 2008 financial crisis and the collapse of lehman brothers and others, a catastrophic time, a global recession. did that notjolt the city of london and wall street to change?- the city of london and wall street to change? no, not at all. street to change? no, not at all- greed — street to change? no, not at all. greed and _ street to change? no, not at l all. greed and competitiveness are the two key principal

features that characterise bankers and always will. go into the city to improve the world, you go there to make a fast buck and the fact of the matter is the memory is short, lots of people, they are currently in the city, there are no longer being thinking about 2008, just as when i entered i was not thinking about what happened in 1987 with the crash then. really, it is the whole problem is that you think the bonus is a value creation, sorry the reflection of your value, and the bigger the potential reward, the bigger the risk you are willing to take because that is all we do. to take because that is all we do, , ., , to take because that is all we do. sorry to interrupt you. we are shorter— do. sorry to interrupt you. we are shorter time _ do. sorry to interrupt you. we are shorter time which - do. sorry to interrupt you. we are shorter time which is i do. sorry to interrupt you. we are shorter time which is a i are shorter time which is a shame because this an interesting conversation. if london did not do this, would london did not do this, would london not be seen as not the place to be if you were in a banking? can they not therefore

attract the best in the business because they are not offering bonuses where you can get them elsewhere? this argument _ get them elsewhere? this argument is _ get them elsewhere? this argument is wilted - get them elsewhere? this argument is wilted every i get them elsewhere? try 3 argument is wilted every time ijy argument is wilted every time by the smart guys at the banking lobbying places like the british bankers association, they said an regulation was increased, they talked about it when they said the ratios, the amount of debt a bank and have would increase. they said it when compliance increase. they will out this every time to try to see please do not make any changes, we like things as they are, we like things as they are, we like to make huge amounts of money with this asymmetrical risk whenever humanly possible, and i am afraid they will literally say this every single time. it literally say this every single time. , ., ., ~ literally say this every single time. , ., ~ ., time. it is a 'oke. what was our time. it is a joke. what was your biggest _ time. it is a joke. what was your biggest bonus - time. it is a joke. what was your biggest bonus back- time. it is a joke. what was your biggest bonus back in| time. it is a joke. what was i your biggest bonus back in the day? i your biggest bonus back in the da ? ., your biggest bonus back in the da ? . ., , your biggest bonus back in the da ? ., ., , ., , day? i hate to see it. it was so lona day? i hate to see it. it was so long ago- _ day? i hate to see it. it was so long ago. it _ day? i hate to see it. it was so long ago. it was - day? i hate to see it. it was so long ago. it was about i so long ago. it was about 500,000 quid.— so long ago. it was about 500,000 quid. that is a nice bonus! it _

500,000 quid. that is a nice bonus! it was, _ 500,000 quid. that is a nice bonus! it was, but _ 500,000 quid. that is a nice bonus! it was, but it - 500,000 quid. that is a nice bonus! it was, but it the i 500,000 quid. that is a nice l bonus! it was, but it the time, i went bonus! it was, but it the time, i went into _ bonus! it was, but it the time, i went into that _ bonus! it was, but it the time, i went into that room - bonus! it was, but it the time, i went into that room and i i i went into that room and i said this is outrageous. that is at least — said this is outrageous. that is at least a _ said this is outrageous. that is at least a ferrari. - said this is outrageous. that is at least a ferrari. that i said this is outrageous. that is at least a ferrari. that is l is at least a ferrari. that is what you — is at least a ferrari. that is what you have _ is at least a ferrari. that is what you have to _ is at least a ferrari. that is what you have to do, i is at least a ferrari. that is what you have to do, you l is at least a ferrari. that is i what you have to do, you know what you have to do, you know what really does? it encourages psychopathic behaviour, a single goal to make this big bonus and your colleagues are not colleague, the competitive is. you can lie, cheat and steal to do anything to get the bonus and, of course, society will suffer if a bank fails unlike with other firms, when banks fail we all fail. irate unlike with other firms, when banks fail we all fail. we have to no, i banks fail we all fail. we have to go. i am — banks fail we all fail. we have to go, i am sorry _ banks fail we all fail. we have to go, i am sorry to _ banks fail we all fail. we have to go, i am sorry to say. i banks fail we all fail. we have to go, i am sorry to say. we l to go, i am sorry to say. we appreciate your view on this, it is an interesting debate, bankers bonus is a good thing or a bad thing. tell us what you think as well. we have to squeeze a more business doris, a lot going on. the us food and drug administration on has approved a new alzheimer's drug from eli lilly. the drug maker said donanemab has been shown in clinical trials to modestly slow a decline in memory and thinking abilities

in people with the disease. the drug will be the second therapy for slowing progression of alzheimer's that will be available to us patients. google's greenhouse gas emissions have surged 48% in the last five years due to the expansion of its processing power, needed for its artificial intelligence systems. the tech giant said electricity consumption by data centres and supply chain emissions were the primary cause of the increase. google said its "extremely ambitious" goal of reaching net zero emissions by 2030 "won't be easy". japan has began circulating its first new banknotes in 20 years, which feature three—dimensional portraits of the founders of financial and women's universities. the notes use printed patterns to generate holograms of the portraits facing different directions to stop counterfeiters. existing bills will stay in use but the wide array of vending and ticket machines will have to upgraded to take the new notes. and coming up — we take a look

at the cutting—edge tech giving us new ways to interact with athletes at the paris 0lympics. around the world and across the uk, this is bbc news.

to kazakhstan now, where leaders from the countries that make up the shanghai cooperation 0rganization are meeting today. the group is lead by china and russia with the aim to "improve the international order" through joint security and economic development. currently, it has 9 members, which include india and iran but is set to add belarus at this year's gathering. china's president xijinping and russia's president vladimir putin have arrived in the kazakh capital astana for the summit. joining me now is leonid petrov from the international college of management sydney.

good to have you on the programme. this is an eclectic mix of countries that make up the shanghai cooperation organisation. what can we expect from the meeting? the timin: of expect from the meeting? the timing of this _ expect from the meeting? tue: timing of this summit expect from the meeting? t'te: timing of this summit is particular, russia is engulfed in illegal murderous destructive war against ukraine, china is not providing military equipment but supporting it morally and financially and technologically perhaps along with iran and other members stays of the organisation. we see also china is looking at tie one potentially and we do not know if it will repeat what russia has under ukraine so far that many members of this organisation which was created

backin organisation which was created back in 2001 when the world looks very different, now potentially feel uneasy about what russia is doing to ukraine and even kazakhstan, the country, the largest country which is hosting this important summit, also very nervous about russia, which may look at kazakhstan northern provinces and try to sponsor inaudible, something that is against the spirit of shanghai organisation. the evils which have been fighting against traditionally the islamic or religious extremism or terrorism and separatism. this is what russia is trying to instigate in eastern europe. china may try to do so as well. let's talk about the expansion because it is expect to add another member at these events,

belarus willjoin, how significant is that? this is more bad _ significant is that? this is more bad news _ significant is that? this is more bad news for i significant is that? this is more bad news for the i significant is that? this is i more bad news for the world. the dictatorship in belarus is in close proximity, politically and economic analyses military with russia, belarus is now hosting not only russian military and advisers but also nuclear weapons that potentially can be used in ukraine or against the nato states, who knows. the president might visit as well and in that case the organisation will become, will have a ten member state with certain observers and its partners, and these partners are very much at odds with what russia and belarus are doing in eastern europe. turkey is part of the nato organisation, who

are supported for finland participation and nato and significantly for russian and geopolitical positions in the baltics. inaudible missing in this summit.— this summit. thank you for 'oinin: this summit. thank you for joining us _ this summit. thank you for joining us from _ this summit. thank you for joining us from the - joining us from the international college of management sydney. to tech now, and with the paris 0lympics just weeks away, new technology is playing an increasingly important part both in the sporting arenas and for the audiences watching at home. the bbc�*s click programme caught up with olympic gymnastics champion max whitlock to look at some of the tech aiming to enhance the viewing experience. max whitlock is britain's greatest gymnast. he's won multiple titles including three world championship golds and six 0lympic medals. three of those were also gold.

but this will be his last time competing at the games. he is retiring after paris, so fans may want to watch his every move. the olympics of course provides great excitement all over the world but despite the fact that athletes move fast, they can't be everywhere all at once. so maybe this is a solution. 29 cameras make up this volumetric studio which will have more than one use for athletes. all those cameras are then fed into a capture pc that runs on intel processing power. we can capture human performances, interactions, singing, dancing, whatever, in full 4—d. the result is a 360—degree video that we can use to insert in other 360—degree virtual environments. the end result is a digital version of the person which can be beamed into tv studios around the world

during broadcast interviews. i am max whitlock, a team gb gymnast and six—time olympic medallist, and i'm going to do a somersault in this new technology. using a tracked camera we can synchronise the virtual - environment and the athlete doing a backflip with - the interviewer in real time so it seems likel they are actually together. any athlete would call out and massively welcome new technologies that are gonna enhance the viewing experience, seeing sport in different ways. i think it's obviously very, very clever when there are new ways to move forward to do sport in different ways. it's amazing. and here we have it, the smartphone version of an ar athlete which sports fans can access byjust scanning a qr code. what was the turning point when it felt like it was fit for purpose? it took a lot of r&d to get a human looking like a human.

you can't mess up the way a human looks, right? 0ur human perception, it is very astute, so if someone's eyes are off a bit, we recognise that immediately and so in the reconstruction process in 3—d we had to get it perfect. to do this live is something's thatis to do this live is something's that is right, a lot of this machine learning has gone into the process to reconstruct this in real time and a live stream the data to a point where you can be anywhere in the world, interviewing an athlete in paris and have a conversation with them so the latency is so low that it is like you would be next to them. no problem! yes, that is me, some are less athletic at least the virtual version can keep going.

interesting, the technology and the energy for the paris 0lympics the energy for the paris olympics are coming up soon. and finally, we head to germany where a major switch in its approach to cannabis has seen — growing equipment and seed sales soaring. germany partially legalised cannabis back in april, allowing adults to possess substantial quantities and cultivate up to three plants at home. but for those who just want to buy it, there are now what's known as cannabis clubs, which became legal at the start of the month. to tell us how this works, i'm joined by nils harbers, founder of mariana cannabis, an umbrella organisation for future cannabis clubs across germany. good morning. what is a cannabis club, what does it look like in germany? good morning. — look like in germany? good morning, thank— look like in germany? good morning, thank you - look like in germany? good morning, thank you for i look like in germany? good i morning, thank you for having me. it is a club organisation, so complicated because it is inaudible, that is why the german government made it known

a commercial and non—profit, so basically you have a bunch of guys, you have a bunch of guys who wrote together and harvest together and then deploy the harvest. fir together and then deploy the harvest. , ., ~' together and then deploy the harvest. , ., ~ ., , harvest. or smoke the harvest, i cuess! harvest. or smoke the harvest, i guess! you — harvest. or smoke the harvest, i guess! you are _ harvest. or smoke the harvest, i guess! you are a _ harvest. or smoke the harvest, i guess! you are a club - harvest. or smoke the harvest, i guess! you are a club of- harvest. or smoke the harvest, i guess! you are a club of up i i guess! you are a club of up to 500 members, i understand, and as you pointed out, these are not—for—profit clubs. is there a regulator to keep an eye on your wall? it there a regulator to keep an eye on your wall?— there a regulator to keep an eye on your wall? it is a club law, it eye on your wall? it is a club law. it is _ eye on your wall? it is a club law. it is a — eye on your wall? it is a club law, it is a club _ eye on your wall? it is a club law, it is a club laws, - eye on your wall? it is a club law, it is a club laws, and i eye on your wall? it is a club| law, it is a club laws, and you have to do some finance compliance but it is difficult also now in the first month for the german government. i think this is strength for our umbrella organisation because the government has one main factor to just the government has one main factor tojust talk to the government has one main factor to just talk to instead of thousands of difference

clubs. ., . , of thousands of difference clubs. ., ., , . ,, ., clubs. how many clubs are there? i — clubs. how many clubs are there? i was _ clubs. how many clubs are there? i wasjust - clubs. how many clubs are there? i wasjust going i clubs. how many clubs are there? i wasjust going to | clubs. how many clubs are i there? i wasjust going to ask, there? i was just going to ask, across germany at the moment? it is difficult to tell you because not all clubs are registered yet. in hamburg, hamburg has 1.8 million inhabitants and there were only 12 registered clubs, so probably between 100 and 200. since cannabis was legalised in april in germany, what difference is that made? what have you seen in terms of uptake?— have you seen in terms of u take? a , ' . uptake? mainly the difference in how people _ uptake? mainly the difference in how people see _ uptake? mainly the difference in how people see cannabis. l uptake? mainly the difference i in how people see cannabis. now you can smell it everywhere, people smoke it in the streets, so it is basicallyjust the mindset, a lot of people do not care anymore about stigmatisation behind cannabis. has a reduced illegal sales? t5 has a reduced illegal sales? t3 there data on that? not yet. that is the problem, because

now cannabis is legal but there are not so many ways to get cannabis, so the black market and profits from it, so now the cannabis clubs take some time to get licensed and start growing, so probably at this point it would take more than six months at least to get some data on the black market and we can see some reduction. interesting. thank you for joining us from germany. thank ou for joining us from germany. thank you for having _ joining us from germany. thank you for having me. _ joining us from germany. thank you for having me. you - joining us from germany. thank you for having me. you can i you for having me. you can smell it _ you for having me. you can smell it everywhere, i you for having me. you can smell it everywhere, he i you for having me. you can i smell it everywhere, he says that he became legalised in april. let's quickly look at the markets in asia. a record close for wall street the night before and that is continuing into the asian trading session is a digestive of the federal reserve chair had to say, implying when interest rates may come down in the us. see you soon.

hello there. well, we're not expecting summer to make a big return any time soon. in fact, it will stay unsettled across the whole of the uk as we head through the rest of this week. it will be unseasonably windy, there'll be rain, more showers to come in the forecast, but it won't be raining all the time. lots of dry weather, too, some bright and some sunny spells, but all the while feeling cool for this point injuly. temperatures a good few degrees below the seasonal average. and there's more rain to come as we head through tonight and into wednesday morning from these weather fronts out towards the west. the heavy downpours reaching eastern england by the time we get to tomorrow morning. of course, it will be mild underneath the cloud, the rain with more of a southwesterly wind, temperatures in double figures. the rain clearing away from eastern england through the morning. always cloudy, perhaps a few showers across england and wales, but some brighter skies to the lee of high ground. more showers pushing into northwest scotland, sunshine and showers here through the afternoon, and brightening up for

northern ireland and perhaps western wales and southwest england by the time we get to the end of the day. temperatures disappointing for this time of year, just the high teens in celsius. so those fronts clear away, then you can see a tight squeeze on the isobars into thursday as the wind turns more westerly and then northwesterly again, this little feature likely to bring some heavy, thundery showers across northwestern areas of scotland, perhaps through northwest england as well. further south, then, we are expecting some sunshine, although still very windy conditions, particularly up through the dover straits. and in the best of the sunshine, well, it's stilljuly, so it will feel quite pleasantly warm, but temperatures won't get much past 18—20 celsius. now, if you're a tennis fan over the next couple of days, mostly dry on wednesday, chance of one or two showers, probably dry on thursday with some sunny spells but windy for the time of year. and of course, those temperatures still below the seasonal average. we'd normally expect to see 22 or 23 celsius. as we head into friday, then, we're likely to see more rain

across the south, and that could certainly interrupt play at wimbledon. these little features just running in from the west here. on saturday, most of the rain will be further north, probably leaving southern areas with a largely dry day, perhaps a few showers around to start. and then it's mostly fine and probably dry on sunday. bye—bye for now.

good morning, welcome to breakfast with sally nugent and jon kay. 0ur headlines. the final countdown — with just 24 hours until polling stations open, party leaders reinforce their core messages to voters. hurricane beryl roars through open waters towards jamaica, after killing at least six people in the southeast caribbean. the mother of missing teenager jay slater describes online conspiracy theories about her son as vile and extremely distressing. paying the price of gluten intolerance free—from products can be twice as expensive as regular ones, but why? i'll be finding out. what?! i think, ultimately, he is a good person. he is fighting against his own goodness because he wants to be bad.