big tech sell off. us shares tumble as investors start to doubt the euphoria around ai. making matters worse, an earnings car crash from tesla.

$80 billion wiped off the value of elon musk�*s ev maker as fierce competition leaves its profits in dire need of a recharge. also coming up... taking on the big birds. how brazilianjet maker embraer hopes to prey on boeing and airbus. we start in new york, where shares are tumbling on wall street, led by the same big tech names that have helped propel the markets to record highs in recent weeks. that's despite some strong results from alphabet, the owner of google and youtube, which has seen sales and profits jump. investors are focusing instead on the huge amount being spent on al and wondering if it will pay off. also causing concern, a big slump in profits at tesla that has seen some $80 billion wiped off its stock market value. let me show you what the tech

dominated nasdaq is doing right now, if i can, and that is the number, 2.5% lower, if you can see it in the middle. we spoke to one expert a little earlier who told shares in tech have become too expensive and investors are now moving their money into traditional industries in anticipation of rate cuts from the federal reserve. we entered the third quarter where tech stocks, the mac seven stocks, um, were basically priced to beat perfection. i mean, that's almost an impossible standard. so you do see some of the rotation out of there. and where is it going? it's been going into more cyclical areas of the market. so in the us we're talking about small cap stocks, the russell 2000 and some of the more cyclically oriented value oriented stocks. now, helping that cause is notjust the rotation of something that is technical, but also if you remember earlier injuly we had a big cpi miss and that gave the markets a lot of confidence

that the fed that wants to cut, may be able to cut sooner rather than later. so the markets are pricing in a september cut. we here at cbiz also think that september cut is, could be pencilled in. i don't think we're getting anything from the fed next week. but certainly this excitement around a cutting cycle from the fed that may be beginning soon, i think that is a big driver of the market rotation. lets talk to our north american correspondent michelle fleury, in new york. what is it investors are so worried about now? i have touched on al, but it all seems to be coming together along with that news about tesla that there is a bit of nervousness about tech? yes, i think the rate cuts. — nervousness about tech? yes, i think the rate cuts, as _ nervousness about tech? yes, i think the rate cuts, as you _ nervousness about tech? yes, i think the rate cuts, as you heard _ nervousness about tech? yes, i think the rate cuts, as you heard from - the rate cuts, as you heard from your guest there, that is something that means the way people brugts... changes and that typically tends to move investors away from technology stocks. that is one thing you can look at. the other thing goes back

to ai and it is this idea that everyone believes that is the future, the question is how fast is it getting here? people are beginning to look at the numbers and the amount of money companies are spending to develop this technology and they are going, well, it is not going to pay off any time soon, so you are seeing a retreat. remember this very second, alphabet, the parent company of google billie google, spent roughly $13 billion in this last quarter alone developing its ai capabilities. that is a huge amount of money being ploughed in thatis amount of money being ploughed in that is not being returned yet in profits, so the question is what is the timeline of that return? that is what is making wall street skittish right now, but the long—term picture, according to one bowl when it comes to these sorts of things is positive. have a listen to what dan ives of wedbush securities had to say. i ives of wedbush securities had to sa . ~' , , ives of wedbush securities had to sa . ~ , , ., ives of wedbush securities had to sa , " , , ., " " say. i think it is 'ust a knee'erk reaction. i say. i think it is 'ust a knee'erk reaction. the h say. i think it isjust a knee'erk reaction. the google �* say. i think it isjust a knee'erk reaction. the google cloud]- say. i think it isjust a kneejerk- reaction. the google cloud numbers were robust. you're talking about

al, they— were robust. you're talking about al, they actually went from back ai, they actually went from back against — ai, they actually went from back against the wall for more of a mojo what _ against the wall for more of a mojo what we _ against the wall for more of a mojo what we are — against the wall for more of a mojo what we are seeing in google. in my opinion, _ what we are seeing in google. in my opinion, the — what we are seeing in google. in my opinion, the ai party is at 9pm and his party— opinion, the ai party is at 9pm and his party goes to 4am. i think big tech _ his party goes to 4am. i think big tech continues to lead any sell—off here in_ tech continues to lead any sell—off here in tesla, alphabet, ithink tech continues to lead any sell—off here in tesla, alphabet, i think any herein tesla, alphabet, i think any sell-off_ here in tesla, alphabet, i think any sell—off next week will be bush, tesla _ sell—off next week will be bush, tesla and — sell—off next week will be bush, tesla and others. to me the heaters will continue — tesla and others. to me the heaters will continue to hate, they have been _ will continue to hate, they have been pretty negative on al for the last five _ been pretty negative on al for the last five or— been pretty negative on al for the last five or six years. you been pretty negative on al for the last five or six years.— last five or six years. you heard it, the last five or six years. you heard it. they were — last five or six years. you heard it, they were only _ last five or six years. you heard it, they were only at _ last five or six years. you heard it, they were only at 9pm - last five or six years. you heard it, they were only at 9pm in - last five or six years. you heard i it, they were only at 9pm in the last five or six years. you heard i it, they were only at 9pm in the ai party, but the problem for wall street right now as it is not going to be generating any profits anytime soonin to be generating any profits anytime soon in terms of quarterly results. michelle fleury in new thank you. calmer skies are returning for europe's airline industry after one of the biggest carriers easyjet reported a jump in profit for the three months tojune sending shares soaring. easyjet says it's not seeing any weakening demand for air travel and is on track for a record summer, with fare prices holding up.

it's a stark contrast with low cost rival ryanair which caused turbulence across the industry as it reported a slump in profits over the same period. we asked travel expert simon calder to explain the difference in fortunes. really good question. basically, it's all to do with easyjet saying, "we've got "the best possible network using primary airports". so here in london, for instance, they're flying into london gatwick, which a lot of people prefer, as well as luton and stansted, which is ryanair�*s main base, but more particularly, as well as bringing many tourists to london, they are taking loads and loads of brits on holidays and in april, may and june, they saw steadily rising load factors filling up their planes increasingly well, and at the same time, some pretty good fares. so they made a £6 or $8 profit per passenger over those three months and an increase, as you say, of one sixth,

compared with ryanair�*s profits slumping by nearly half. staying with aviation... bosses from the global aviation industry have been heading to farnborough in the south of england this week for the annual airshow. we've already heard about the problems facing boeing as it battles a safety and quality control crisis. also how its rival airbus is struggling to cope with the extra demand. so could there be room for a rival to take on the big birds? brazilian plane maker embraer is already a major player in the market for smaller airliners. is it ready to build something bigger? a question our correspondent theo leggett put to embraer�*s head of commercial aviation. technology—wise, we could do it. we have a kc—390 that has the size of a narrow body and the width of a wide body. 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. 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 narrow body 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 see what they've done, for example, on the car manufacturing side, um, 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 big enough for multiple players, especially in the narrow body segments. 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 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. some other business stories for you this hour... shares of french luxury goods giant lvmh — home to brands including louis vuitton, dior and tiffany — have fallen sharply after sales disappointed investors. economic woes in china and a cost of living crisis around the world are weighing on high—end brands. markets will now be braced for results from gucci owner kering after the wall street close and hermes tomorrow. us defense giant lockheed martin has raised its sales targets for the year to $71 billion. it follows the unexpected resumption of deliveries of its f35 aircraft, after the pentagon began accepting the jets last week following long delays due to software upgrades. britain's crown estate, which manages the public property of king

charles, has published an record annual profit at eu charles, has published an record annual profit at £1.1 billion, $1.1; billion. it has been boosted by income from offshore wind farms. the crown estate controls the revenue for most of britain's sea bed, along with a sizeable footprint of urban property. and the closure of more than 200 carpet stores in the uk has left many store owners in trouble. a rival shop has said it will fulfil 54 rival shop has said it will fulfil 5a orders, but will not pay for shops that have already shut. it won't help the 1500 staff who have only lost theirjobs. that is it from me, goodbye.

you are watching verified live here. before we go on to more news, let's turn to the tennis, a tennis player

has withdrawn from the olympics because he has tonsillitis, the player has confirmed the honour is a short time ago with a statement saying competing at the olympic games was one on my main goals for the season. however, after seeing my doctors on tuesday, i am waiting an extra day to give myself more time to see if my condition would improve, things unfortunately got worse after. so that news that yannick senna is out of the olympic games due to illness. —— that news thatjannik sinner is out of the olympic games. she turned to benjamin netanyahu's visit to the us. he was urged not to travel to the us until he had sealed the deal for hostages.