can they compete with bigger rivals boeing and airbus? and also in the show — on national tequila day — we'll explore a drink that's bucking a trend of falling spirit sales. live from london, this is business today. the electric vehicle giant tesla has reported its lowest profit margin in more than five years, missing wall street's earnings targets in its second quarter results. the car—maker's been forced to cut prices in recent months to compete with rivals in china both in the us and in international markets. and it's facing fresh challenges from legacy car—makers in the us and elsewhere. the company's ceo elon musk has said he would be shocked if his self—driving cars aren't ready to operate without human supervision on us roads by next year. let's hear more now

from erin delmore in new york. 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. i am joined from chicago by seth goldstein, an equity strategist and chair of the electric vehicle committee at morningstar. thank you forjoining us. firstly, it is interesting about these tesla results because it looks like they are struggling to impress the likes of the big investors effectively?- of the big investors effectively? of the big investors effectivel? , ~ ., effectively? yes, you know, these shares _ effectively? yes, you know, these shares were - effectively? yes, you know, these shares were down - effectively? yes, you know, i these shares were down about effectively? yes, you know, - these shares were down about 896 these shares were down about 8% in after hours training, probably due to the share price but also due to the fact that tesla really did not have concrete guidance, they thought these would be ready by the end of the year or next year which we have had multiple times before and i think we saw

investors potentially throwing the towel to some extent saying, let's wait until tesla shows proper progress before we get enthusiastic about tesla as an ai company. get enthusiastic about tesla as an ai company-— an ai company. elon musk is sa in: an ai company. elon musk is saying that _ an ai company. elon musk is saying that actually, - an ai company. elon musk is saying that actually, rivals i saying that actually, rivals have been cutting prices saying these results are a hangover. how much do you think that is accurate?— how much do you think that is accurate? ~ . , ., accurate? well, we have seen an intense ev _ accurate? well, we have seen an intense ev price _ accurate? well, we have seen an intense ev price war _ accurate? well, we have seen an intense ev price war especially . intense ev price war especially intense ev price war especially in china, which is one of tesla's biggest markets outside the us so we have seen chinese aeds being exported to europe, we have seen price wars there too, so there are a lot of car—makers cutting prices as a wayne to gain market share is. but at the same time tesla is not of the affordable vehicle category yet and we have seen more and more affordable ev is

to have similar specs and a good range of performance which makes tesla higher priced option for many consumers. in terms of what's been going on in the last few months, there has been quite a lot of eventful months for investors, they moved the base in austin and also the improved their massive pay deal for the and also the improved their massive pay dealfor the elon musk. do you think i might leave a sour taste in people's modes? ~ , ., , modes? well, investors overwhelmingly - modes? well, investors. overwhelmingly approved modes? well, investors- overwhelmingly approved both those measures, so i think if you are a tesla investor, you believe in elon musk and you believe in elon musk and you believe in elon musk and you believe in his leadership and his vision and you think that he is able to grow the company from the original 2018 pay package where it is today. it is something that is very difficult to do. we have seen many auto—makers file for bankruptcy because they were not successful enough in

britain tracing vehicles. sol think the shareholders who are in it for the long term. backing him but at some point tesla will need to show progress on its ai front and start to show progress on the unit production costs to get its profit margins back to where they were. its profit margins back to where the were. �* , where they were. broadly in the vehicle market, _ where they were. broadly in the vehicle market, we _ where they were. broadly in the vehicle market, we are - where they were. broadly in the vehicle market, we are seeing l vehicle market, we are seeing the likes of general motors posting pretty strong results and we saw some big stock moves there, they are investing in their own ev capabilities as well. , , . , their own ev capabilities as well. , , ., , ., well. yes, they are. they are launching _ well. yes, they are. they are launching multiple _ well. yes, they are. they are launching multiple tvs - launching multiple tvs throughout various price points. gm has been talking about tvs and investing in them for years and we are starting to see more and more production, and the plans for ev is turning into actual sales. . ~ ev is turning into actual sales. ., ~' , ., ev is turning into actual sales. ., ~ ., ev is turning into actual sales. ., ., ., sales. thank you for “oining us, sales. thank you for “oining seth. *

google's parent company, alphabet, has beaten revenue and profit estimates in its second quarter results. that's down to a pick up in digital advertising sales and growing demand for cloud computing services. the company's net income was up to $23.5 billion. in fact that's a similar figure to the offer it made to purchase the israeli cyber—security firm wiz, what could have been its biggest ever acquisition. that offer's been declined and we'll explore that more in a few minutes. first let's cross live now to las vegas and hear from quasar elizundia, a research strategist at pepperstone. thank you forjoining us. in terms of where this leaves google, what do you think this is reflective of in terms of their strong revenue lines? i think it is a much more... i think it is a much more... i think to setting up google for

a quick path ahead. 0ne think to setting up google for a quick path ahead. one thing we have seen after hours, treating about 2% on the downside but i believe that the report we the sea was very solid across the board. of course there were some areas in which you could argue that we got not to be in line with expectations especially but on that front we can mention k, may be the expectations especially after where we got to see in the first quarter on the earnings side of things when it comes to youtube, and of course there is the other side of that but you don't necessarily get to see the breakdown very specifically, and may to be also... i think ou and may to be also... i think you have _ and may to be also... i think you have to _ and may to be also... i think you have to be... _ and may to be also... i think you have to be... take - and may to be also... i think you have to be... take a - and may to be also... i think| you have to be... take a step back and see that google has been performing when it comes to expectations notjust in this quarter, it has been doing it since the beginning of 2023 and in doing so as well,

getting more efficient. we have been seeing profit margins improving, we got to see the top line getting better by 40% when we compare to the second quarter of last year and in that mine we're getting to only costs and expenses increasing over 8%, that has improved the profit margin and i think overall it is looking good for a strong position. thank you very much forjoining us. staying with alphabet — the israeli cyber—security firm wiz has rejected a $23 billion takeover offer, in what would have been alphabet�*s largest—ever acquisition. live now to tom stevenson, investment director at fidelity. tom, thanks forjoining us. it's interesting because that is a very attractive offer for wiz, why did they say no? you

are right. _ wiz, why did they say no? you are right. on _ wiz, why did they say no? you are right, on the _ wiz, why did they say no? you are right, on the face - wiz, why did they say no? ym. are right, on the face of it is an attractive offer to stop its only two months ago that it's only two months ago that wiz raised some money in a fundraising round and the value of the company then was put at 12 billion, so this offerfrom google reported offer from google reported offer from google is nearly twice that price. the other way of measuring the value of the offer is that in terms of a multiple of wiz�*s sales, it is about 46 times sales. if you look at some of the comparable companies out there including crowdstrike which of course was in the news last week because of that big outage, that was valued at about 20 times sales. so in the face of it this was an extremely attractive offer from google. i think the reason why... there are two possible

reasons why they rejected the offer, one is that the stated reason which is they are looking to float the business and they think the company is going to be worth more than a couple of years when they come round to floating. the other reason is that they mayjust be engaged in a high—stakes game to try and up the price a bit. eitherfrom google or to try and up the price a bit. either from google or from to try and up the price a bit. eitherfrom google orfrom one of the other big tech companies.- of the other big tech com anies. , . companies. so, big tech companies— companies. so, big tech companies have - companies. so, big techj companies have enjoyed companies. so, big tech - companies have enjoyed out on acquisitions in areas they have wanted to grow and this is a good example, google wanted to good example, google wanted to go an area that perhaps they felt it had struggled in. do you think now as these companies see their future on the stock market as they grow in value, might this be a trend that's going to continue forward?— that's going to continue forward? , ., forward? yes, i mean, the thing ou have forward? yes, i mean, the thing you have to _ forward? yes, i mean, the thing you have to realise _ forward? yes, i mean, the thing you have to realise about - forward? yes, i mean, the thing you have to realise about wiz i you have to realise about wiz is that its founders were already wealthy people, they sold the business about eight or nine years ago to microsoft

for about $300 million, so personally, the founders have already got plenty of money and they are not in any need to sell wiz at a price that they do not feel is right. so i think they are holding out to really maximise the returns they can get from wiz and also they can get from wiz and also the other way of looking at it is, they want to grow big business, they don'tjust want to be absorbed into google, they are still young men and they are still young men and they want to be masters of their own destiny if you like and notjust disappear into the google machine. in and notjust disappear into the google machine.— google machine. in terms of deal-making, _ google machine. in terms of deal-making, we _ google machine. in terms of deal-making, we are - google machine. in terms of deal-making, we are seeing| google machine. in terms of. deal-making, we are seeing a deal—making, we are seeing a bit of a slowdown this year when it comes to acquisitions, why is that?— why is that? well, i think this is related _ why is that? well, i think this is related to _ why is that? well, i think this is related to the _ why is that? well, i think this is related to the interest - why is that? well, i think this is related to the interest rate | is related to the interest rate cycle and i think one of the things that we may see as we reach to perfect interest rates and they start to come down and

we will probably see that in september in the us, is that i think that deal—making becomes more attractive as the cost of burrowing falls. so i think that's the principle reason for the slowdown.— that's the principle reason for the slowdown. and technology in the slowdown. and technology in the us clearly — the slowdown. and technology in the us clearly is _ the slowdown. and technology in the us clearly is a _ the slowdown. and technology in the us clearly is a huge - the us clearly is a huge industry and we know that from the snp. here in the uk, technology isn't particularly as large. do you think interest—rate cuts will encourage more small firms to perhaps invest a bit further and grow?— perhaps invest a bit further and grow? perhaps invest a bit further and crow? ~ ., ., ~' , and grow? well, one of the key differences _ and grow? well, one of the key differences between _ and grow? well, one of the key differences between the - and grow? well, one of the key differences between the us - differences between the us market and the uk market is clearly our lack of exposure to technology. i think the interest rate falls will be positive, notjust for the tech companies but for all companies. in particular the more cyclical companies which are maybe more geared to the health of the economy. so i

think that the general stock market terms, this pivot in the interest rate cycle we are about to see from september onwards will be a real positive for stock markets on both sides of the atlantic.— for stock markets on both sides of the atlantic. 0k, tom, thank ou ve of the atlantic. 0k, tom, thank you very much- _ around the world and across the uk, this is bbc news.

to the farnborough airshow now, where the great and good of the global aerospace industry is gathering all this week. we've already heard about the difficulties facing boeing in the wake of a safety scandal and how its rival airbus is struggling to cope with extra demand. so could there be room for another player to enter the market for big jets? one possibility is brazilian firm embraer, which is already a major player in the market for smaller airliners.

so would it be ready to build something bigger? a question our reporter theo leggett put to embraer�*s head of commercial aviation arjan meijer. 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 hydrogen power, electrification. now, that's a technological challenge, and it's likely to start at least with smaller aircraft. does that provide an opportunity for you? absolutely. i think we are... we pride ourselves for being the manufacturer in the up to 150 seat space. that's one of the reasons why we launched energia. we believe that new technology will find its way to the market soon at the lower end. electric, really small — hybrid, a little bit bigger. hydrogen, whether with

fuel cell or whether with combustion, maybe even a little bit more bigger than that. but we believe it's up to the 100 seat segment in the next 15 to 20 years. and we're talking to customers and suppliers to see what's possible. and we believe that's an area where we're good at and that's why we're focused on it. 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. and finally, in terms of environmental performance,

the aviation industry is trying to go net zero by 2050. do you think that's a manageable target? um, i think it is. if we allow all the different solutions to come together. so i think what we're talking about is doing truly green concept on the lower end. they will contribute, but will only partly. we believe hydrogen could be a solution longer term. and we believe sustainable aviation fuel is also a very natural pathway. that's basically the lowest hanging apple that we should go after. let's get some of the day's other news now. here in the uk, the closure of more than 200 carpetright stores has left many customers and staff in trouble. its rival retailer tapi has rescued 5a stores but says it will not fulfil outstanding customer orders at shops that have shut, nor will it rehire around 1,500 staff who lost theirjobs. depending on their method of payment, many customers are hundreds of pounds out of pocket with no expectation of recovery.

britain's crown estate, which manages the public property of king charles, has posted a record annual profit of £1.1 billion — or $1.11 billion. that's been boosted by income from offshore wind leases. the crown estate controls the revenue from most of britain's inshore sea bed along wih a sizeable footprint of urban property. the company has also announced a 15% reduction in its energy usage. the us defence company lockheed martin has raised its annual sales target to around $71 billion. it follows the unexpected resumption of deliveries of its f—35 aircraft, after the pentagon began accepting the jets last week. the us resumed taking f—35 deliveries after a months—long pause on delays on its software upgrade. lockheed has been upgrading thejets under a programme to give the f—35 better displays and processing power. india's finance minister presented her coalition government's first budget after a slim election

victory last month. it includes a big bang $24 billion package focused on creating jobs over the next five years and push on infrastructure spending. the budget announcements clearly indicate a shift in priorities for prime minister narendra modi's new dispensation to more welfare driven programmes. the bbc�*s archana shukla outlines the key highlights. 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. it's national tequila day. the mexican spirit has witnessed a boom in popularity and by the end of this year, tequila's expected to have overtaken vodka and whiskey to become the most valuable spirits category in the us. live now to wendy hopkins, director of bars uk and international, at the tao group. i see you're at one of your bars, pretty early! thank you forjoining us. it's interesting, tequila is clearly quite popular in mexico but also in the united states is to get a lot of your custom there? yeah, we get international guests, i think the popularity of tequila has absolutely evolved especially after the lockdown, a lot of people take

the time to educate themselves and try a lot of new things at home and now we can see the real benefits of integrated into our restaurants, the guests are more innovative, their shifting away from the everyday tequila and moving to the premium choices and it is a booming category, things like mascara and other types of drinks are popular. —— things like mascara. drinks are popular. -- things like mascara.— like mascara. it's because --eole like mascara. it's because people are _ like mascara. it's because people are actually - like mascara. it's because people are actually doing| like mascara. it's because - people are actually doing shots of tequila?— of tequila? across the target u-rou of tequila? across the target a-rou in of tequila? across the target group in a — of tequila? across the target group in a restaurant, - of tequila? across the target group in a restaurant, i - of tequila? across the target group in a restaurant, i think we can see the main uptake is through the cocktails, but guests also like to enjoy sipping tequila on the rocks in late bars, tequila by the part of the table will be further things to gopher. i5 of the table will be further things to gopher. is a cultural challenge? —

things to gopher. is a cultural challenge? in _ things to gopher. is a cultural challenge? in europe, - things to gopher. is a cultural challenge? in europe, gin - things to gopher. is a culturalj challenge? in europe, gin has been a very popular choice for example, enjoyed great popularity over the last decade or so. i popularity over the last decade or so. ., _ or so. i would say in the uk, jane is or so. i would say in the uk, jane is still _ or so. i would say in the uk, jane is still very _ or so. i would say in the uk, jane is still very popular, - jane is still very popular, overall global trends i would feel it is declining. tequila is overtaking. we used to have three or maybe four vodka and gin cocktails and now it is three tequila cocktails and vocab engine. we three tequila cocktails and vocab engine.— three tequila cocktails and vocab enaine. ~ ~ , ., vocab engine. we keep hearing that generation _ vocab engine. we keep hearing that generation 2 _ vocab engine. we keep hearing that generation 2 are _ vocab engine. we keep hearing that generation 2 are very - that generation z are very healthy, they don't really like drinking alcohol, smoothies are the choice of drinks, are you finding that a challenge when it comes to segment marketing to different types of tequila? i think you make the conscious choices, whether you are abstinent for a healthy lifestyle, think comes to treating yourself, you like to make that exception i think tequila will be definitely the

category to go for. i think that guests know what they are getting. there are some ways that it does not give you headache and things like that so it's probably nicer to have. it doesn't give you headache pinch—mac i don't know, i had some particular on friday and it definitely gave me a headache on saturday morning! generally if you drink the tequila you will feel much better the next day. the solution _ better the next day. the solution to _ better the next day. the solution to all— better the next day. the solution to all our- better the next day. the solution to all our problems! but in terms of working with mexico, where her growers presumably are, have you found any challenges chris but clearly there are security issues in mexico the moment, we hear a lot about importers and exporters having trouble there. i think we are quite lucky, our target group is a hospitality, we work with a great supplier chain and we feel having enough

liquid on hand. there were some challenges coming out of the lockdown where consumption at home was such a high, restaurants not being open. a typical couple of years to recover. but i feel we are now back on track, probably back in mexico i think the families are physically significant challenges. a lot of brands are influencing them to get their hands on some of the... influencing them to get their hands on some of the. .. thank ou hands on some of the. .. thank you sorry _ hands on some of the. .. thank you sorry to — hands on some of the. .. thank you sorry to cut _ hands on some of the. .. thank you sorry to cut your. - hands on some of the. .. thank you sorry to cut your. that's i you sorry to cut your. that's bbc news. hello. there is nothing too drastic or dramatic coming up weather—wise over the next few days. that said, it will be a somewhat mixed affair. some sunshine through the day on wednesday, equally a little bit of showery rain. what we've got is this big area of high pressure, the azores high, just trying to extend its influence

towards the uk. however, we also have this frontal system pushing in from the west. so what that means is a lot of dry weather to start the day on wednesday, with some spells of sunshine, but with that weak frontal system pushing in, we'll see increasing amounts of cloud and some outbreaks of showery rain for northern ireland, parts of western scotland, wales, the southwest of england and even further east, where we hold on to some sunny spells — we will see one or two sharp showers breaking out, but it will feel pretty warm in eastern and particularly southeastern parts, 25 or 26 degrees. not quite as warm further west with the extra cloud, the showery rain. and as we head through wednesday night, we'll see increasingly cloudy conditions. it will be quite murky and a little bit damp and drizzly in places as we import some more humid air. so temperatures on thursday morning generally starting the day between 13 and 16 degrees. pretty muggy start to the day, and a really complex weather chart with several different frontal systems in play across the uk.

what that will mean is a lot of cloud, some outbreaks of rain, one clump of potentially heavy rain pushing across southern counties of england and the channel islands. elsewhere, we'll see some bits and pieces of showery rain across parts of northern ireland, western scotland, in between one or two glimmers of sunshine and temperatures between 16 and 22 degrees. now, as we head into friday, actually, it's not a bad—looking day, we'll see some spells of sunshine. the chance for one or two showers, particularly across scotland and northern ireland — not as many showers for england and wales — and in the sunshine, it is going to feel warm. the sun is strong at this time of year, temperatures easily getting up into the 20s. a little bit cooler further north and west with more cloud and with those showers. and then as we head towards the weekend, it's a familiar story, really, this area of high pressure, the azores high, still trying to exert its influence, but not strong enough to fend off all the frontal systems. so there will be some showery rain at times, particularly towards the north and the west of the uk, drier and turning warmer further south and east.

good morning, welcome to breakfast withjon kay and sally nugent. 0ur headlines today. seven labour mps suspended — the prime minister asserts his authority after they defy the government over the two—child benefit cap.

a soldier is in a serious condition in hospital after being stabbed near to brompton barracks in gillingham — a man's been arrested on suspicion of attempted murder. britain's joint most decorated female 0lympian has withdrawn from the paris games. charlotte dujardin says she's "deeply ashamed" after a video emerged allegedly showing her beating a horse excessively with a whip. good morning. the price of a bag of otatoes good morning. the price of a bag of potatoes hits _ good morning. the price of a bag of potatoes hits its _ good morning. the price of a bag of potatoes hits its highest _ good morning. the price of a bag of potatoes hits its highest point - good morning. the price of a bag of potatoes hits its highest point for i potatoes hits its highest point for nearly 50 years, sending a gpt do nearly 50 years, sending a gpt do nearly a tenner. i am at a chip factory to see if that has affected our appetite for the great british dish. # di, di, dah, dah, dah # di, di, dah, de, dah # fantasy.# janetjackson on growing up in one of music's most successful families, and how she never intended to be famous.

good morning.