slowest pace in a year. anyone fancy a couple of cheese tea? we will speak to the chinese tea chain who want us to get drinking their new style drink. welcome to business today. we will begin in france where the governor of the central bank hasissued governor of the central bank has issued a warning over the country is seeing france to not afford to keep increasing or burden is companies with more taxes and costs. he says there is a risk of a political uncertainty shock, how he described it, and business leaders were slowing down investments and hiring as the hedge against possible tax increases. the warning comes after a week of continued political turmoil in france as it tries to form a new government following the surprise outcome of the parliamentary elections. let's

speak to an economist at i n g. good morning. the economy cannot afford to keep its increasing its deficit. how much of an impact as political turmoil had on the countries finances? it turmoil had on the countries finances?— finances? it is difficult to assess because - finances? it is difficult to assess because things i finances? it is difficult to l assess because things are ongoing and a lot of decisions have to be taken in the coming weeks, it will be crucial, but the state of the french economy, is already not that bright for the time being. the state of the french economy is also not that bright, the situation of the finances, it was a public deficit of more than five persons, that is the starting point of all the political story. starting point of all the politicalstory. i starting point of all the political story. i think that

is why the governor continued to say we need to tackle the problem of the public deficit, and it is not the time to spend more money, that is the key message. now what will happen will depend on the political decision taken in the coming weeks. in decision taken in the coming weeks. ., , decision taken in the coming weeks. , . ., decision taken in the coming weeks. , u, weeks. in those coming weeks, weeks. in those coming weeks, we have already _ weeks. in those coming weeks, we have already have _ weeks. in those coming weeks, we have already have the - we have already have the warning that key business leaders are pulling back on their investments. what sectors are we talking about and were really safe havens they are turning to? fit really safe havens they are turning to?— really safe havens they are turning to? really safe havens they are turnin: to? u, , ., turning to? of course, if we go dee-er turning to? of course, if we go deeper in _ turning to? of course, if we go deeper in the _ turning to? of course, if we go deeper in the political- deeper in the political programme of the left—wing parties, the leftists block that tries to propose a prime minister, let's not forget they do not have any absolute majority at the parliament but if you go deeper in their programme you clearly see that

it is not really a question of sectors, it is a question of bigger versus small companies, trying not to take any measure against smaller companies, but they clearly focus on increasing taxation including labour cost for big companies. from the economic side, i would say the focus is clearly on big companies, that they could prefer to sour their investment because of their fear of higher labour costs because they want to increase the minimum wage that would be paid by big companies, and even with a state system of compensation for smaller companies paid by big companies, so it is quite

complicated. clearly the focus is on a big companies, and i was only as the energy sector is also at stake because of those sides of the leftists block was also to change the situation and the price of energy. that is a little bit — the question — on the one side, france is not doing so bad in terms of the development of its economy and the new sector. there is a big tech sector also in france. there are still a lot of questions. hopefully we will aet lot of questions. hopefully we will get those _ lot of questions. hopefully we will get those questions - will get those questions answered. thank you for our questions this morning. let's turn our attention to the united states where the market

rally finally came to an end after reaching record highs over several days this week. taking a look at some of those key figures. the nasdaq ended sharply on a thursday hit by losses in big tech. the s&p 500 also losing ground after a us labour repository consumer prices fell injune. the dollar also dropping off the back of the unexpected fall in prices. the dour finish with modest gains. all of this comes as price rises in the us were at the slowest pace at the year by building have the world's largest economy is now moving on from the bout of high inflation that he after the pandemic. all bets at the moment are pointing towards the federal reserve cutting interest rates in september. let's talk now to susanna.

we will come to september and how likely that is what a dramatic shift in the way things ended in the us yesterday. what reaction has there been?— yesterday. what reaction has there been? ~ .,~ there been? markets are taking a breather _ there been? markets are taking a breather from _ there been? markets are taking a breather from the _ there been? markets are taking a breather from the record - there been? markets are taking a breather from the record run, | a breatherfrom the record run, use or the nasdaq and s&p 500 restart when it is those activities and stocks that really took the most hammering. what we see is there is some profit—taking because of the evaluations that lead dramatically but also a rotation out of big tech towards some of those companies that might benefit in the lower interest rate environment that actually have been suffering over the last couple of years. that is why traders are now betting that they could be more growth there in stead. that is why they are shifting their

portfolios, investors looking at opportunities ahead but certainly it was dramatic for the nasdaq, for example. the s&p 500 also fell back but obviously it made up slightly different grouping of companies compared to the tech heavy nasdaq but that is the difference you see there. we have also _ difference you see there. we have also started the us banks earning report season today. what can we expect? the focus is now going — what can we expect? the focus is now going to _ what can we expect? the focus is now going to be _ what can we expect? the focus is now going to be moving - what can we expect? the focus is now going to be moving on i what can we expect? the focus| is now going to be moving on to the cooling economy on one hand would also a lower rate environment on the other. that will mean that potentially banks cannot quite so much on the loans they make an interest much are coming down but also there will be an eye on how much they have had to set aside or will set aside in terms of loans turning bad, because if the labour market is people

find it harder to getjobs, for example, the economy slows down, it could be it is more difficult for personal loan repayments but also there will be an eye on the commercial industrial loans as well. of course, we're still in a high interest rate environments, rates cuts are not coming immediately, september looks more likely, but even so it will probably be gradual. at the same time that is hurting companies as well, the high rate of financing. that will probably be fit for in their banking results are likely to lead to a softening of earnings going forward. lead to a softening of earnings going forward-— going forward. thank you for that rates — going forward. thank you for that rates cut _ going forward. thank you for that rates cut answer - going forward. thank you for that rates cut answer as - going forward. thank you for| that rates cut answer as well. susanna, lovely to see you. thank you. to asia, and it has been a volatile morning for the japanese yen. on thursday is surged nearly 3% against the us dollar, that was the biggest

daily rise in almost two years. that has fuelled speculation that authorities intervened, causing much more unsettled trading today. our resident guru joins us now. what exactly happens and how have markers responded today?— responded today? before that, since we last _ responded today? before that, since we last spoke, _ responded today? before that, since we last spoke, did - responded today? before that, since we last spoke, did you i since we last spoke, did you know that my title on a screen has been changed to bbc year gig? it is one of my career highlights. yes, iam back because the japanese currency jumped 3% against the us dollar yesterday. it was the biggest daily rally in almost two years. last time we spoke, i think i told you they do not usually confirm if they intervene until many months later. even when everyone, every trader thinks they did, but this time a japanese government official told local media they did intervene,

though the country yen tar the finance minister has not confirmed this. he has become somewhat of a star on social media. you can find ei generated videos of him. he is leaving the role of the end of the month, so a lot of farewell messages as well, this could be his last move if he did really intervene. he has been known for very well timed interventions in the past, just as japan entered the golden week holiday at the end of april, and this time of the back of the us inflation data you are talking about. the us dollar was already weakening because it has increased chances of a rate cut in the us. the reason the japanese yen has been weakening was because of the huge difference in the cost of borrowing between the us and japan, the usual formula is the higher rate, the stronger the local currency gets because it attracts more

investments. the bbc will miss all the jokes about investments. the bbc will miss all thejokes about him. investments. the bbc will miss all the jokes about him. the new minister will take over in august but your resident geek is here to stay. aha, august but your resident geek is here to stay.— is here to stay. a case our view is — is here to stay. a case our view is the _ is here to stay. a case our view is the reminder, - is here to stay. a case our view is the reminder, that j is here to stay. a case our - view is the reminder, that was our bbc resident yen gig. i love her. tesla is 11 day winning streak came to a halt on thursday after news broke the electric vehicle maker is delaying the unveiling of its robo taxi. shares fell more than 8%. our correspondent has been following the story. for months hasluck _ been following the story. fr?" months hasluck has teased the arrival the robo taxi and autonomous taxi service that has captivated consumer attention and elon musk for years. now the company is putting turn signal on exiting fast lane. the robo taxi roller

has been delayed to october, as i had been scheduled to unveil the start of august. the company was to give the workers more time to build additional prototypes according to bloomberg which reportedly development first. welcome to the meeting. back injury, elon musk over the shipment reserved for tesla to his other companies. those chips are instrumental to their efforts to develop autonomous vehicles. tesla has a challenging year. vehicle sales fell in the company comprises an announced layoffs is that it anticipated lower deliveries in 2024 competitive 2023. the company is facing increased competition from as overseas rivals. something that reduced interest with the launch of a new lower prize vehicle, especially attractive to consumers in the age of high interest rates. a bloomberg reporter said that elon musk prioritise the launch of the taxi instead.—

of the taxi instead. around the world and _ of the taxi instead. around the world and across _ of the taxi instead. around the world and across the _ of the taxi instead. around the world and across the uk, - of the taxi instead. around the world and across the uk, you | world and across the uk, you are watching bbc news.

grass core, a uk company that builds aa chips has been bore by the tac in his —— japanese tech company. it comes as they struggle to compete with the dominant ai chip giant nvidia. but speaking to the bbc, the co—founder and ceo said the move wasn't about not being able to compete with the giants in the sector. we able to compete with the giants in the sector.— in the sector. we started working _ in the sector. we started working on _ in the sector. we started working on al, _ in the sector. we started working on al, we - in the sector. we started| working on al, we started talking about this back in 2012 which was just when the deep learning phenomenon was starting. and over the period of time, we built an amazing team an amazing set of technology and we have competed, gone toe to toe with largest companies in the space

with a much smaller team and with a much smaller team and with much less capital even though as a company, we race as a gift amount. so i think we have unable to do it here but now, this market has really just taken off. so quickly, really at the end of 2022 with the launch of chatgpt and all that and been able to keep up with that requires a massive amount of investment and that's what this ship with softbank does and have the same addition to drive this next generation of ai technology and that's why joining together is a really good opportunity here and we should look at softbank, they did a good job of working with us and helping them with being private and then they have gone public. who knows what is in graft course future, i can't make any statements but we are in the beginning of the journey

so i think softbank is proving to be a really good partner. that was nigel there. we will stay with taken the ceo of the mind, groundbreaking ai research company, they have long been an advocate for the transformative potential of artificial intelligence. he spoke to my bbc colleague about the opportunities he saw for the opportunities he saw for the new uk government from al. how is al going to affect the uk in the next five or even ten years? this was the central question asked at the tony blair institute for global changes future of britain conference in london this week. tony blair himself, the former prime minister, many clear he believes he is key to the uk in canonic success. it believes he is key to the uk in canonic success.— believes he is key to the uk in canonic success. it will change everything- — canonic success. it will change everything. and _ canonic success. it will change everything. and positively - canonic success. it will change everything. and positively if i everything. and positively if we embrace it in a spirit of innovation, no introspection.

and new uk health secretary where they say it will have a role in the nhs. but in the number of seats and mri scanners but ai enabled scanners, those are massive product activity — my productivity gains. as founder and ceo of our company, google deepmind, they have been developing ai for healthcare, scientific research and consumer use long before it was fashionable. it consumer use long before it was fashionable.— fashionable. it will transform everything — fashionable. it will transform everything so _ fashionable. it will transform everything so it _ fashionable. it will transform everything so it will- fashionable. it will transform everything so it will be - fashionable. it will transform everything so it will be at - everything so it will be at least�*s biggest international revolution, possibly bigger, more like the admin of electricity and even fire. does he think the _ electricity and even fire. does he think the new _ electricity and even fire. does he think the new government| he think the new government could do making use of artificial intelligence. i think it's a big opportunity for the country and the new government to embrace the economic opportunities that i think are going to come with al and also, the scientific possibilities so helping with healthcare, truck design but

also climate.— healthcare, truck design but also climate. the newsletter government _ also climate. the newsletter government city _ also climate. the newsletter government city wants - also climate. the newsletter government city wants to . also climate. the newsletter government city wants to be j also climate. the newsletter. government city wants to be a green superpower and we know that this technology is very power hungry. so how is a relationship going to work out in the future? i relationship going to work out in the future?— in the future? i think in the short term. _ in the future? i think in the short term, does _ in the future? i think in the short term, does a - in the future? i think in the short term, does a lot - in the future? i think in the short term, does a lot of. in the future? i think in the - short term, does a lot of power needed to scale the systems up by most of the large companies including google have committed to green power usage and net zero targets, the types of systems where we are building, training on this large data centres will have normative locations and could use cases for climate so things are getting more efficiency out of existing infrastructure like power grids, applying ai itself to save power in the data centres so i think indian, what is al systems do will save energy and power far outweighing what they're currently using. aha, outweighing what they're currently using.— currently using. a lot of american _ currently using. a lot of american investment, l currently using. a lot of i american investment, that of investment going on in china, what is the uk said? i

investment going on in china, what is the uk said?— what is the uk said? i think if ou look what is the uk said? i think if you look at — what is the uk said? i think if you look at it, _ what is the uk said? i think if you look at it, the _ what is the uk said? i think if you look at it, the us - what is the uk said? i think if you look at it, the us and i you look at it, the us and china, the kind of two superpowers, have the most investment, the most research but i think if you look at the next tier, the uk's right in there in the mix so partly to get the economic gains in the prosperity form up but also to influence how it goes on the world stage so right now, the uk has incredible strengths in that from scientific brace —— base and company's leading companies like deepmind base. crystal ball moment, how far away do you think we are from artificial general intelligence? artificial general intelliuence? �* , , . , intelligence? a61 is a terms that we use _ intelligence? a61 is a terms that we use in _ intelligence? a61 is a terms that we use in the - intelligence? a61 is a terms that we use in the field i intelligence? a61 is a terms that we use in the field to i that we use in the field to describe the level ai, systems that are capable of general solutions to problems, like the human mind can do. and i think that i wouldn't be surprised if it was in the next decade and so perhaps 50% chance in the next decade.— so perhaps 5096 chance in the next decade.— next decade. thank you very much indeed. _ next decade. thank you very much indeed. let's - next decade. thank you very much indeed. let's have i next decade. thank you very much indeed. let's have a l much indeed. let's have a little chat about when power, a company based in the us state

of colorado is trying to build the words biggest plane to help transport giant turbines to places where they can build more windfarms to help keep up with global demand for renewable electricity, my colleague has been speaking to the boss and asked them why we serey to build such huge plane. what it's doing is is we are enabling onshore turbines to be “p enabling onshore turbines to be up to the size of offshore turbines and is a great opportunity because the industry knows how to make very large turbines that are the size of the eiffel tower with blades that a football field long spot the challenges, use of the kunghur distribute to where the market is ten times bigger onshore. and the constraints here is that you cannot move a very large blade to an onshore location, they are too wide, too tall, too long, you can't get around corners, three bridges, through tunnels and so, will we at

radio are building an airlift solution to get around these transportation constraints. what about designing a plan thatis what about designing a plan that is so big, you said it's going to be the world's biggest cargo plane, how do you even know it will fly? and you're taking on the big boys in the aviation game, boeing and airbus, whatever you can compete?— airbus, whatever you can comete? . .,, , compete? our team has been workin: compete? our team has been working with _ compete? our team has been working with this _ compete? our team has been working with this for - compete? our team has been working with this for the i compete? our team has been working with this for the last l working with this for the last seven years and second aircrafts to or because of different design iterations, all the different competition on modelling, wind tunnel testing, very confident this will fly, furthermore, we've engineered this with very powerful engines that will give us a lot of thrust to get in and out of challenging places more easily. smaller companies can identify the opportunities and when we accomplish this, we can work with the space to take percentage points of co2. you percentage points of c02. you can see more _ percentage points of c02. you can see more of _ percentage points of c02. you can see more of that - percentage points of c02. you can see more of that interview and find out more about the

world growing appetite for electricity on talking business this weekend and bbc news by the evening at half past ten gmt. well, let's stay with that because we love tea, don't we? what about sea topped with a layer of fresh cheese? yes, cheese. the chinese tea chain haiti known as the starbucks of the east is keen to bring its trademark cheese tea to a wider range of consumers, they opened over 4000 stores in over 300 cities across the world and they will use the paralympics to launch its own range of averages to mainland europe. i'm trying out by the vice president and overseas strategy and franchise department at haiti. hello and welcome to the programme. cheese and tea. first off, what she's is it?

it's going to be by country, by region? because regions are very protective over their cheeses. very protective over their cheeses-— very protective over their cheeses. ~ , ., ,, cheeses. while, people talking about cheese, _ cheeses. while, people talking about cheese, in _ cheeses. while, people talking about cheese, in fact, - cheeses. while, people talking about cheese, in fact, we i cheeses. while, people talking about cheese, in fact, we are l about cheese, in fact, we are talking about cheese tea, we are like cheese form on top of are like cheese form on top of a tea product. we use realty, real sugar and real product so the taste is really good. and also, were introduced very brand so many of our customers are like us. brand so many of our customers are like us— are like us. what is it taste like? excuse _ are like us. what is it taste like? excuse me? - are like us. what is it taste like? excuse me? what i are like us. what is it taste l like? excuse me? what does are like us. what is it taste i like? excuse me? what does it taste like? _ like? excuse me? what does it taste like? you _ like? excuse me? what does it taste like? you said _ like? excuse me? what does it taste like? you said it's - like? excuse me? what does it taste like? you said it's a i taste like? you said it's a cheese formed an actual piece of cheese. i'm just wondering about the thijssen what it brings to tea?— about the thijssen what it brings to tea? yes, yes. t is like jasmine, _ brings to tea? yes, yes. t is like jasmine, green -

brings to tea? yes, yes. t is like jasmine, green tea i brings to tea? yes, yes. t is like jasmine, green tea and | like jasmine, green tea and it's something like liquid. just on top of the tea, it taste the little bit salty and it taste good. but you see that we cannot answer it quite well because if you tried, you would know. ., _ because if you tried, you would know. ., ., , know. you say it taste delicious, _ know. you say it taste delicious, won't i know. you say it taste delicious, won't you? | know. you say it taste i delicious, won't you? 0k, know. you say it taste - delicious, won't you? 0k, tea, delicious, won't you? ok, tea, people are very passionate about their tea in the same whether they are about coffee, why did heytea think that they could launch a product like this on the world? it's a very competitive sector, isn't it? yes, in fact, when people are talking about starbucks, you know this plan and we people talk about tea, maybe they think some brands like boebert tea in fact, we are not bye—bye tea, we create the first tee in 2012 and introduce real

ingredients so we enter some market out of china, in 2018 we expand our first footprint into singapore market and now, after covid, we open other stores in some new countries. like the uk and us. —— boba tea. congratulations and good luck with heytea. this is bbc news, stay with us. hello there! the best way to sum upjuly so far this month has been rather wet at times and disappointingly cool. average temperatures at this time of year generally between 18 and 23 degrees. just take a look at the next few days — temperatures below par for the time of year, all due to the direction of the wind and the amount of cloud we're going to see. now, let's take a look at the pressure chart a little more detail, explain further. we've got this high pressure out to the west but circulating around that high. the wind direction comes in a clockwise fashion and so, that means a northerly wind. it will continue to drive in

plenty of cloud across exposed east coasts, maybe thinking of a spot or two of drizzle as we go through the day, and perhaps a few sharp and thundery downpours breaking out across south wales and south west england. best of the sunshine, perhaps, on friday will be across parts of southern scotland and northern ireland. brisk northerly wind, particularly out on those exposed east coasts. temperatures will struggle mid—teens but we could see highest values of 20 degrees in western scotland but generally, those temperatures a little bit subdued. the high pressure tries to hang on in there as we go into the start of the weekend, staying out to the northwest, and this area of low pressure could just influence eastern areas, spilling in, once again, a little more in the way of cloud and some drizzle. so, double figures to start the day on saturday. still some showery outbreaks of rain around for some and as we go through the day on saturday, sheltered western areas will see the best of the sunshine.

a feed of cloud and some showery rain just drifting in across east yorkshire. so here, temperatures once again mid—teens at very best. we might see highest values of 20 degrees. now, as we move into sunday, there is a potential for that low pressure to just pull away a little bit further and allow for more sunshine to come through, particularly across england and wales, and as a result, the sunshine is strong at this time of year. we'll start to see those temperatures recover just a touch. and that's going to be the trend as we move into next week. we've got low pressure pushing across the country which could bring some showery outbreaks of rain at times. but then, the weather story looks set, fingers crossed, to quieten down. so, a few scattered showers around monday, possibly tuesday, but by wednesday onwards, drier and warmer.

good morning. welcome to breakfast with charlie stayt and naga munnchetty. our headlines today... joe biden insists he will stand in the us election, but makes a major mistake at the nato summit, mixing up a key ally and a sworn enemy. now i want to hand over to the president of ukraine, who has as much courage as he has determination. ladies and gentlemen, president putin.

but the president stands defiant and dismisses suggestions he's not up to re—election because of his age. police in bristol are searching for this man after two suitcases containing human remains are found on the clifton suspension bridge. ahead of the sentencing of the man who plotted to kidnap and murder the tv presenter holly willoughby, one of his previous victims tells us gavin plumb could have been stopped sooner good morning. bunting, england shirt, fully shocked bar. fans and businesses gear up for what they hope will be a winning weekend for the euros. and making a splash. the england players themselves are getting ready for sunday night, with some time for rest and relaxation. a new exhibition to explore

the wreck of the titanic and discover the secrets of the world's most