in more than five years. price cuts aimed at reviving demand for its electric vehicles and increased spending on al projects weighed on earnings, as erin delmore explains. tesla shares spent most of the year sliding between lagging sales, production snarls, shipping delays and increased competition from overseas ev makers. then shares started gaining. they were up 40% since the end of may. see, investors started focusing less on tesla's slumping ev sales and more on chief executive elon musk�*s plans to make tesla into an artificial intelligence powerhouse with al powered robo—taxis and humanoid robots. alluring? yes. profitable? no. or at least not yet. tesla unveiled its second quarter earnings tuesday after wall street's closing bell, and reported a 45% drop in profit between april and june. that came in lower than

analysts had estimated. sales fell nearly 5% in the second quarter and production fell as well. now, investors are left to see whether tesla can successfully rev up its lagging car sales or begin monetising its ai offerings fast enough to make up for it. but demand for combustible engines seems to be strong — with general motors reporting better than expected profit and revenue in the second quarter. its shares fell, however — with analysts saying continued losses in china were partly to blame. the auto—maker is leaning heavily on its petrol engine offerings to fuel its profits because of a slower—than—anticipated transition to electric vehicles. also reporting and beating expectations overnight — alphabet. google�*s parent company put it down to a rise in digital advertising sales and healthy demand for cloud computing services. i've been speaking to dan ives from wedbush securities about all the big tech earnings and started by asking him about tesla's self—driving

technology. i think it next year, it is realistic. you talked about it, this isn't ai robotics company and is probably the most important thing from the conference call, that's the next focus for tesla and i think the vision is worth $1 trillion. in think the vision is worth $1 trillion. , ., trillion. in terms of everything - trillion. in terms of everything that's i trillion. in terms of. everything that's been happening on the political front in the us that's been dominating headlines, lots of talk about tariffs, how is the electric vehicle industry looking at the prospect of a trump presidency? i looking at the prospect of a trump presidency?- looking at the prospect of a trump presidency? i think trump is viewed as _ trump presidency? i think trump is viewed as negative _ trump presidency? i think trump is viewed as negative for- trump presidency? i think trump is viewed as negative for ev - trump presidency? i think trump is viewed as negative for ev is i is viewed as negative for ev is in terms of the overall thing, but could be positive for tesla. iiii but could be positive for tesla. , ., ., but could be positive for tesla. ., ., ., tesla. if you move onto google, is all that _ tesla. if you move onto google, is all that spending _ tesla. if you move onto google, is all that spending on _ tesla. if you move onto google, is all that spending on al - is all that spending on al really paying off, so we are seeing? i really paying off, so we are seeinu ? ~ , , .,

really paying off, so we are seein. ? ~' , , ., . ., seeing? i think this is a cloud arms race — seeing? i think this is a cloud arms race going _ seeing? i think this is a cloud arms race going on _ seeing? i think this is a cloud arms race going on betweenl arms race going on between icrosoft, google and amazon. google are narrowing the gap. this was a goldilocks quarter for them. this is important because i think that is worth $30—$40 because i think that is worth $30-$40 per share because i think that is worth $30—$40 per share on because i think that is worth $30�*$40 per share on the because i think that is worth $30—$40 per share on the google story and my opinion this is a major step in the right direction in terms of what we saw in the quarter. the direction in terms of what we saw in the quarter.— direction in terms of what we saw in the quarter. the last 24 hours, saw in the quarter. the last 24 hours. we _ saw in the quarter. the last 24 hours. we saw _ saw in the quarter. the last 24 hours, we saw a _ saw in the quarter. the last 24 hours, we saw a big _ saw in the quarter. the last 24 hours, we saw a big deal- saw in the quarter. the last 24 hours, we saw a big deal of. hours, we saw a big deal of rejection, the israeli cybersecurity firm rejecting a $23 billion takeover from alphabet, what you make of it? 23 billion, that is a significant amount in the last valuation. i think what it should, this is going to be really game of thrones that's happening in cyber security. trillion dollar market, for google, they wanted this, so i think now icrosoft all go more aggressively after m&a. you look at names like that could benefit from the crowdstrike

issue, i think this continues to be significant in terms of cyber security. india's government has assigned billions of dollars forjob creation and the development of regions run by key coalition partners. it's the first budget since prime minister narendra modi's election setback is being seen as an effort to cement the coalition and win back votes — as archana shukla explains. job creation, rural distress and appeasing political allies, crucial to keep the modi government in power, appear to be the three key focus areas this budget. it seems the government has finally accepted that despite the shiny gdp growth, joblessness remains the biggest challenge for the economy, and hence the higher spending on creating morejobs in the formal sector. there are cash transfer schemes for newjoinees, support for small and medium enterprises and manufacturing units that create these jobs. spending on infrastructure remains the biggest allocation in this budget. $134 billion that was allocated in the interim budget

remains unchanged. with infrastructure spending, there is definitely a tilt on welfare spending, as expected. the government does have the money to spend on welfare schemes while also keeping its fiscal deficit target, that they have listed at 4.9%, in place. so we saw a slew of infrastructure projects like roads, airports, industrial corridors being announced for the state of bihar and a financial assistance package for the state of andhra pradesh was announced. both of these are biggest political allies for the modi government right now. free ration scheme was extended, free electricity programmes announced and tax breaks for salaried class will bring in benefits for the poor and middle—class section that has so far not benefited from the fast—paced economic growth the country has seen. the finance minister, however, chose to increase taxes for investors. profits booked on investments both in the short and the long term will be taxed at a higher rate, and that spooked the market — that ended in red.

now to japan, which has been rocked by a health scandal. the chairman and president at kobayashi pharmacy have resigned after a major recall of health supplements. 80 deaths have been linked to pills which contain red yeast rice, or beni koji injapanese. in march, the health supplement maker began recalling products after customers complained of health problems after taking them. commentator seijiro takeshita told me what went wrong at the company. they should have opened their closed—door policy, which is totally absurd. they are just reporting they have resigned, but they really haven't. the chairman has become an adviser and the president, although he has resigned from the presidency, he will still remain at the board and he is the 13% shareholder, that still prolongs their business. so nothing really has changed, they have learned nothing from the 76 deaths reported and basically they are still trying to hide and buying time, hoping that silence will be

golden, which i think is totally wrong and totally unacceptable, particularly with the number of deaths that have been caused. how much damaged has it caused to the company's reputation? has the pharma industry been responding? it has the pharma industry been responding?— responding? it is more like a pharmacy — responding? it is more like a pharmacy so _ responding? it is more like a pharmacy so it _ responding? it is more like a pharmacy so it doesn't - responding? it is more like a pharmacy so it doesn't hurt i responding? it is more like a i pharmacy so it doesn't hurt the japanese pharmaceutical industry. but that said, for this company, the repetition is totally tarnished, especially considering that in my opinion they have changed nothing, even after this incident had been revealed. the us has opened an investigation into delta airlines after last week's global it outage. the government has called for delta to give passengers refunds and other compensation for disrupted travel. delta has cancelled more than 5,000 flights since friday and says it could take several more days for operations to return to normal. to the farnborough airshow now, where the players in the global aerospace industry are gathering. airbus is struggling to cope with extra demand created

by boeing's safety scandal. so could there be room for another player to enter the market for big jets? theo leggett put that question to embraer�*s head of commercial aviation. technology wise, we could do it. we have a kc—390 that has the size of a narrowbody and the width of a widebody. so we're capable of a lot. but we're currently very focused on our existing products, the e2, the kc—390 and our executive products with the phenoms and the praetors. and we have a big team looking at future opportunities, and this is definitely one of them. looking to the future, people are talking about of course, there is another player making waves in the market that's still small but could grow, and that's comac of china. how much of a threat would they be to your current position? well, first of all, i think it's amazing what they're doing. and the 919 is the first big narrowbody that's coming out of china. we expect it will take some time to certify that aircraft out of china. but i think in the long run, if we're seeing what they've done, for example,

on the car manufacturing side, they've grown really big. they're building great products. so we'll definitely keep an eye on what china companies are bringing to the market in the years ahead. so that is a potential threat, then? i think the market is is big enough for multiple players, especially in the narrowbody sectors. we will have more news through the width from the farnborough airshow. chinese shoppers meanwhile are holding back on spending on high—end fashion — sales at luxury retailer lvmh have slowed as a result. that said, demand in western markets picked up slightly. sales at the group, which owns brands like louis vuitton, tiffany and hennessy, grew byjust1% in the march tojune quarter compared with the same period last year. toymaker mattel beat wall street estimates for the march tojune quarter. a tight control on costs helped the results, since sales were actually down. the maker of barbie has been streamlinig its supply

chain and plans to exit underperforming product lines. the company says sales are suffering as consumers choose to spend more on experiences and services. and that's it for this edition of business today. you can always logon for all the news and updates on the bbc website. thanks for watching.

hey, i'm lola with the catch up. first — violence against women and girls is a national emergency. that's according to a police report, which also says influencers like andrew tate are radicalising boys into extreme misogyny in a way they call "quite terrifying". the national police chiefs' council estimates about two million women in england and wales are victims of violence every year. nobody in industry and in other sectors and across the public understand just the scale and impact of these crimes. we're really pleased that women and girls are coming forward to report.

but at the same time, we just need to set out from our policing judgment, just the scale of this epidemic. officers who focus on the issue are now working with counter—terrorism teams to look at the risk of young men being radicalised and try to stop the problem getting worse. elsewhere, the head of the us secret service, kim cheatle, has resigned from the job. it's after security failures around the assassination attempt on former president donald trump, which are now being investigated. ms cheatle says she made the decision with a heavy heart. and sharks off the coast of brazil have tested positive for cocaine. marine biologists tested 13 brazilian sharpnose sharks near rio dejaneiro and found high levels of the drug in their muscles and livers. experts think the cocaine is getting into the water from illegal labs or from drug users' sewage. time now for 10 seconds of deadpool cake. walsall baker lara mason took more than 120 hours to create

the life—sized cake of heroes deadpool and wolverine to promote the new film. ryan reynolds even reposted the cake to his insta stories. you're all caught up now. have a great night! hello there and welcome along to sportsday. i'm gavin ramjaun. dujardin's 0lympic dream shattered — britain's joint most successful woman is suspended from competition. we'll tell you more. andy murray will compete in paris, but confirms the olympics will be his last tournament as he says goodbye to tennis. and fifa in the spotlight as legal action is launched by top european leagues over their plans to expand the season.

hello there and welcome along to the programme. the olympics is just around the corner, but one of the leading british athletes at this summer's games in paris has sensationally pulled out. dressage competitor charlotte dujardin, team gb�*sjoint most successful female 0lympian, has been provisionally suspended pending the outcome of an investigation by her sport's governing body over a video which surfaced showing her making what she describes as an "error of judgment". 0ur sports news correspondent laura scott reports. having danced her way to dressage stardom at london 2012, charlotte dujardin cemented her status as one of the most successful british 0lympians of all time. selected for her fourth games, she was expected to make history in paris by winning another medal, a seventh medal, to overtake dame laura kenny as team gb�*s most decorated female athlete.

but she won't claim that crown this summer, because today came