well one thing and today could well be for another thing, tomorrow... we'll explore why a crackdown in china is hurting big european luxury goods firms. with global instability, it's a hot market for defence contractors. lockheed martin reflects on the demands of 202a. and also in the show: as paris gears up for the olympic games, we explore why tourism is tailing off sharply. i'm vishala sri—pathma. live from london this is business today. we start in the united states, where the world's biggest economy has continued to grow. this is according to the official gdp figures for the second quarter. it grew at a rate of 2.8% — higher than most analysts predicted. it's also higher than the first quarter when the country's economy grew at a rate ofjust1.4%. this is seen as an encouraging sign that the fed might lower interest rates when they next meet in september. so what did the us do right in this quarter

and what lessons have been learned? from miami, i'mjoined by chris campbell, founder and ceo of incamera solutions — a global strategic advisory firm. he's also a former us assistant treasury secretary for financial institutions. thank you very much forjoining us. in terms of this growth figure that has jumped quite a bit from quarter to quarter, what is driving that? it’s what is driving that? it's something _ what is driving that? it's something i _ what is driving that? it's something i would - what is driving that? it�*s something i would say, it's something i would say, it's something about the dna of america, when you are born in america, when you are born in america or come to america you have to spend money. it's driven by the really strong sentiment among american consumers, spending money at a record pace. there it in at that savings account to do so but it is strong consumer spending. but it is strong consumer spending-— but it is strong consumer sendina. . , , spending. rates are pretty high at the moment, _ spending. rates are pretty high at the moment, so _ spending. rates are pretty high at the moment, so savings - spending. rates are pretty high at the moment, so savings are | at the moment, so savings are dwindling. do you think this

will mean that a rate cut in september?— will mean that a rate cut in setember? �*, ., , ~ september? it's really... after when i was _ september? it's really... after when i was looking _ september? it's really... after when i was looking at - september? it's really... after when i was looking at the - when i was looking at the treasury department and working with the fed, they tend to look a bit more data than one quarter, one month of data. some more consecutive quarters of lowering inflation data would be a trend that would be possibly reviewed by them which would probably too great guy. we haven't seen that, this is one. on the plot if you will buy would suggest that there is movement in a positive direction on gdp and a bit on the sloping site on inflation. that's exactly what the federal reserve is trying to do in raising interest rates early this year. we are not there yet, where i think it's as a standard of period and enough part the lower rates, but i do anticipate the rate cut late this year early next year. im’ith this year early next year. with economic _ this year early next year. with economic growth _ this year early next year. with economic growth to _ this year early next year. with economic growth to you - this year early next year. with

economic growth to you then think this may be a blip? do you think growth is sustainable going forward?— going forward? very good question. _ going forward? very good question. i _ going forward? very good question, i hope - going forward? very good question, i hope so. - going forward? very good question, i hope so. we l going forward? very good - question, i hope so. we remain the most resilient economy in the most resilient economy in the world. again, mostly driven by consumer demand, americans are troubling right now at record rates. really can't afford it as you noted, interest rates and credit cards are pretty high right now. however there is no indication at least right now that there is something that will come up that will significantly alter the trajectory of the us economy. from the last two quarters, which have been positive growth. i would anticipate further growth leading into the elections and early next year. do leading into the elections and early next year.— leading into the elections and early next year. do you see any challenges — early next year. do you see any challenges to _ early next year. do you see any challenges to that? _ early next year. do you see any challenges to that? there's - challenges to that? there's alwa s challenges to that? there's always what _ challenges to that? there's always what is _ challenges to that? there's always what is unknown - challenges to that? there's always what is unknown in l challenges to that? there's i always what is unknown in the economy, there is always a bubble around the corner but could burst. housing is a bit

of a challenge, inflation in energy and housing and food products have been really high and stubbornly high in the united states. it's really hurting those who can afford it, those but the spike hits the least is a big challenge. housing is one of the areas where it will be a significant issue. also american banks, the smaller banks a community banks and regional banks are holding and regional banks are holding a lot of commercial real estate loans that are coming due later this year and early next year with higher interest rates it could put the pressure on that sector. , ., ~ , ., could put the pressure on that sector. , . ~' , ., , sector. chris, thank you very much for _ sector. chris, thank you very much forjoining _ sector. chris, thank you very much forjoining us - sector. chris, thank you very much forjoining us there. i now the past four weeks have been a seismic period for us politics. presidentjoe biden dropping his re—election bid has thrown the presidential race into uncharted waters. donald trump and kamala harris promise quite different economic visions for their country.

anthony scaramucci is founding partner at skybridge capital — a crypto—hedge fund. he was also — for 11 days injuly 2017 — a communications director for president trump. he's now throwing his weight behind kamala harris. he's been speaking to my colleague arundayu mukharji. they had a reconnection of the supply chain, they have trillions of dollars going into infrastructure, bridges and tunnels. all of the stuff impacts beneficially the economy. if you are rebuilding the electrical grid, the roadways, tunnels, you are cost for american commerce and this is ultimately reducing cost of the american consumer. this is in place and happening. we both know, you are in asia, you know the supply chain is more or less reconnected post covid. the united states is experiencing a lagging effect related to that, but as that

kicks in in the first part of 2025i do think you will see numbers, inflation numbers dropping. it a compelling story to tell, if you look at the average economist, the wall streetjournal of the survey of left and right leading economists all say the consensus is the trump plan is more inflationary than anything the democrats propose. i’m the democrats propose. i'm cufious the democrats propose. i'm curious to — the democrats propose. i'm curious to know _ the democrats propose. i'm curious to know your take on this, donald trump has found new champions among tech leaders. this was not always the case, the likes of elon musk had been raising funds for him, what you think is making tech companies cosy up to trump? tech companies cosy up to trum - ? ., , , , , trump? one of the big issues the democrats _ trump? one of the big issues the democrats have - trump? one of the big issues the democrats have had - trump? one of the big issues the democrats have had is . trump? one of the big issues the democrats have had is onj the democrats have had is on the democrats have had is on the side of regulation stop for some reason ecv crypto currency regulation and financial services regulation to gary and senator was with warren. that has been a great source of frustration with the seasons,

in silicon valley. many of these people have tech exposure, web three exposure and point exposure through a number of currencies. they have choked down and made it very difficult for a good actor like queen base and carruchan to operate outside of the united states this move towards donald trump is a direct result of that. what i would caution people about is the former president is very transactional, he says he is for one thing today, you could very well be for another thing tomorrow. it really depends on what serves his personal interest as opposed to the american people. i would say to those billionaires, frankly, they are making the same cursory analysis and ultimately the misjudgment that i myself made and many others on the many garden variety republicans like myself made in 2016.

anthony scaramucci there speaking to my colleague. to my colleague. openai is launching a test version of its long—awaited search engine, in a challenge to google's lucrative online search business. the company behind chatgpt is relying on its relationships with publishers to provide timely and relevant answers. from new york, here's the bbc�*s north america business correspondent michelle fleury. the company behind chatgpt is testing a new search engine that uses generative artificial intelligence to produce results. openai said the search will watch with a small group of users and publishers before it potentially rolls out wider. the search engine starts with the large text box that asks the large text box that asks the user what they are looking for. after entering your query, rather than giving you a play list of links, this tries to organise and make sense of them. the companies boss was full of fighting talk, posting

on social media "we think there is room to make search much better than it is today." right now it is just a prototype but it could mark the start of a threat to google's dominant search engine. and it comes out a difficult time for google, which is awaiting a federal judge's ruling this autumn on a landmarkjustice department landmark justice department anti—trust lawsuit which landmarkjustice department anti—trust lawsuit which is targeting its alleged monopoly over the online search market. openai did not specify a specific timeline for when search will get a wider rollout. now, all this week the farnborough airshow is taking place at an airfield outside of london. it's a major event, notjust for commercial aerospace companies, but for defence businesses as well. and with the conflict in ukraine now in its third year, and a war in the middle east too, these are busy times. take, for example, the us contractor lockheed martin. it has an order backlog worth some $160 billion,

and its sales grew nearly 10% over the past year alone. michael williamson is president of lockheed martin international. our reporter theo leggett asked him just how much of an effect those conflicts had had on the business. i think it's been pretty significant. i think the demand levels have obviously gone up, there's a lot of pressure to deliver not only quickly but also affordably.— deliver not only quickly but also affordably. there is a lot of concern — also affordably. there is a lot of concern about _ also affordably. there is a lot of concern about the - also affordably. there is a lot| of concern about the situation with ukraine and russia that could escalate into a wider conflict. could you deal with a sudden and rapid increasing demand?— sudden and rapid increasing demand? ., ., , , demand? the good news is we have done _ demand? the good news is we have done a — demand? the good news is we have done a remarkable - demand? the good news is we have done a remarkable job i demand? the good news is we have done a remarkable job of| have done a remarkable job of increasing our production. that is still investment that has to occur to go to that next level but i would tell you that the slope looks a lot different thanit slope looks a lot different than it did two years ago. i would say it was almost flat, to now when you see a steady increase in capability notjust ijy increase in capability notjust by a lockheed martin but competitors, we see the

investment being made as well. it's important because we rely on the suppliers to also have plans for these changes and request an quantities needed. what about the type? because we have heard about al involved in defence, autonomy and yet you are still selling quite a lot of the f—16 which is a 50—year—old aircraft. it is the priority? 50-year-old aircraft. it is the riori ? ~ ., ., priority? we are continuing to sell what you _ priority? we are continuing to sell what you might _ priority? we are continuing to| sell what you might determine to say because of its age, it is not affected. i would tell you that is the difference between one and eight which you can bring to the table. i aircraft is just as relevant as it was 50 years ago. we made a significant amount of technology movement that makes it a significant platform. i would say to the other part of the question that that is the choice that folks make in terms of how much i backfill of the existing capability and where is the investment that allows

even more capability in the same platform.— even more capability in the same platform. while we are talkin: same platform. while we are talking about _ same platform. while we are talking about the _ same platform. while we are talking about the f-16, i same platform. while we are talking about the f-16, thatl same platform. while we are| talking about the f-16, that is talking about the f—16, that is the aircraft that will be provided to ukraine. obviously it's a government to government issue, you are not centrally involved in that but are you providing backup for it? i think it carries the gamut, so we start with things like training both maintainers and assisting and pilot training but an area i think does not get enough press that people don't really appreciate is it is more than just delivering on our craft and having a pilot. it is all the sustained repair parts having the maintenance facilities and the documentation to support keeping in our craft like that flying. i involvement, there was much further than what the eye can see. it's about how i can sustain that capability. theo leggett reporting from the farnborough as show. we will talk about luxury goods now. a crackdown by beijing on displays of wealth

are taking a toll on some of the world's top luxury brands. lvmh says its sales in asia, which include china but not japan, fell by 14% in the three months to the end ofjune, swatch group — the swiss watchmaker which owns omega — said weak demand in china helped push down its sales by over 14% in the first half of the year. live now to dr stephane girod, professor of strategy and organizational innovation at imd. thank you forjoining us. is this something went to the cost of living crisis? a slowdown in the economic activity in china affecting all walks of life? we have to affecting all walks of life? - have to differentiate between three levels of forces at play, the first one is looking at firm by firm strategy outcomes. the second one is what is going on, so leave. we also need to

look at the deeper structurally. when you look at luxury goods businesses, you hear strong diversion of between hermes which continues to thrive on its strategy of very timed exclusivity. and pmh is an animal in itself because it is so big as a conglomerate, more than 64 billion sales at least. finding new sources of growth comes increasingly difficult, quarter by quarter. and you have other companies that i really into a turnaround. it took about burberry and gucci. and the tougher economic conditions for affordable and middle—class is really a consideration. on the

cyclical level i would say that we are getting back to a normalisation of consumption, after the boom post covid that after the boom post covid that a lot of customers experienced. we also have, if you like, a considerable slowdown in china of the chinese economy. whether this is going to recover, i still believe in the growth potential of china. there are also structural issues in this economy that are related to the tensions to trade, international relations. we should not beget that why have we seen such a boom of luxury goods conception in the last 15 years? it was on the back of really strong globalisation growth and that created wealth around the world. this engine subsides that we may see tougher times for luxury

brands. , ,, , ., , ., brands. dr stephane girod, thank you _ brands. dr stephane girod, thank you very _ brands. dr stephane girod, thank you very much i brands. dr stephane girod, thank you very much for i brands. dr stephane girod, i thank you very much forjoining us. professor of strategy and organisational innovation at the imd. around the world and across the uk. this is bbc news.

the financial tech firm revolut has received a uk banking licence after a three—year wait for authorisation. the london—based company is one of a handful of financial services apps — commonly known as fintechs — to emerge in britain over the last decade, offering services without physical branches. that is its unique selling point. the banking licence does come with some restrictions. live now tojoshua mahony, chief market analyst at scope markets. thank you forjoining us. in terms of these restrictions, what are they? this terms of these restrictions, what are they?— terms of these restrictions, what are they? as you alluded to, the what are they? as you alluded to. they can — what are they? as you alluded to, they can only _ what are they? as you alluded to, they can only hold - what are they? as you alluded l

to, they can only hold £30,000 worth of assets for their customers. but really this is a case of putting them into a phase that should last up to 12 months, without essentially getting themselves ready to become a fully fledged bank. that means as things stand, customers within the uk will stay within their e—money entity, they won't necessarily see any changes as the bank undertakes a number of changes undertakes a number of changes under the scenes, meaning upgrading it structures or taking on new staff. as a pepperoni world where they can offer a number of products that are normal bank would not offer ——as they prepare for a world. such as mortgages and loans and other things, an exciting time but on the front and for uk customer they are not necessarily going to notice all too much difference. aha, necessarily going to notice all too much difference.- too much difference. a few ears too much difference. a few years ago _ too much difference. a few years ago probably - too much difference. a few years ago probably about l too much difference. a few years ago probably about a j years ago probably about a decade now actually, we saw a boom in companies like revolut, is a telling off now?—

is a telling off now? certainly it feels like — is a telling off now? certainly it feels like we _ is a telling off now? certainly it feels like we have - is a telling off now? certainly it feels like we have gone i it feels like we have gone through this period were there are a huge number of entrants tried to disrupt the space. it does feel like there is some of stability now where these big players, the likes of revolut have really carved out a specific niche in the market. we have also seen a number of the main banks trying to become more flexible and trying to move in a similar way to some of these smaller and up—and—coming banks. certainly it is interesting because with the likes of revolut they don't necessarily have physical locations. you are seeing many of the big banks giving up their locations on the high street and you will see in terms of international transactions and spending on your card, a lot more competition from the big banks. part of this process is also the traditional banks being able to try to compete and becoming a lot more flexible and that has state of some of the competition but revolut has

done well in garnering the new generation of customers. joshua, thank you very much for joining us. joshua mahony, there. the olympics are officially opening in paris and the opening ceremony can garnerjust as much attention if not more than the action on the running track or the swimming pool. so how do you get it right? marco balich has produced more olympic ceremonies than anyone else, some 14 of them including the summer games in both rio and tokyo. my colleague ben thompson asked him what made the olympics so special. it's the only true global oven because it's eager than fifa. beaver is for men essentially, the people world cup and plus some regions in the world don't follow football as we do in europe. but the olympics, everyone, that day from the emperor ofjapan to a small

village can watch the opening ceremony because they are represented by their team, by their heroes. let's stay with the elder picks because france may be the most visited tourist destination and paris is one of the most visited cities. but the highly anticipated paris 2024 olympic games are facing a surprising challenge — let's hear now from chloe parkins, senior economist, oxford economics. thank you forjoining us. in terms of this drop in tourism, what is triggering that? the terms of this drop in tourism, what is triggering that?- what is triggering that? a lot of it is due — what is triggering that? a lot of it is due to _ what is triggering that? a lot of it is due to the _ what is triggering that? a lot of it is due to the premium i of it is due to the premium that hotels and travel to put on the prices during the event. due to affordability, it is... want to go to paris but not necessarily attending the games may choose to go elsewhere or perhaps visit paris when it is

less busy and slightly more affordable. i5 less busy and slightly more affordable.— affordable. is this not an attraction _ affordable. is this not an attraction point, - affordable. is this not an attraction point, there i affordable. is this not an i attraction point, there would be! one of the reasons cities around the world bid to host the olympics is it brings in more visitors, boosting business activity. why is that not because this time around? it hasn't been the case running up it hasn't been the case running up to the games but this is not a surprise. it is what we saw in the run—up to the london 2012 games, hotel bookings data was slightly down compared to previous years. then post the event and during the event occupancy in hotels and tourism to was a lot higher. in occupancy in hotels and tourism to was a lot higher.— to was a lot higher. in terms of global— to was a lot higher. in terms of global demand, _ to was a lot higher. in terms of global demand, generally j to was a lot higher. in terms i of global demand, generally for tourism, do you think it is partly to do with the cost of living? we are seeing an impact and knock on effect on aviation and knock on effect on aviation and flight prices for example? there's definitely a playing factor. there's also a reason

why we could see the booking data and tourism activity a bit lower prior to the games that we saw in london. largely due to the high inflation. we are seeing consumers are a bit more value focused now, so perhaps they are leaving their bookings closer towards the time so we have seen hotel starting to discount a bit more to bring in these numbers. the closer we get to the event. in these numbers. the closer we get to the event.— get to the event. in terms of tourism globally, _ get to the event. in terms of tourism globally, i'll- get to the event. in terms of tourism globally, i'll be i tourism globally, i'll be looking at areas of growth? paris has seen a drop in hotel bookings. what is a broader picture looking like? in terms ofthe picture looking like? in terms of the broader _ picture looking like? in terms of the broader picture, i picture looking like? in terms| of the broader picture, europe is doing very well in terms of what you refer to as the international travel recovery. the olympics are set to slightly boost tourism demand in france as a whole. but more centred towards paris. by the end of this year both such

tourist arrivals at a 2019 levels, we are in good shape. is that something with rate cuts ahead, clearly that triggers consumer spending. i'll be expecting that to pick up i'll be expecting that to pick up further as you alluded to? tourism activity will pick up during the games. and slightly out towards the rest of the year. we have had a look at some of the hotel bookings data and they are seeing hotel bookings ahead of last year, mostly all the way up to the rest of this year which is encouraging.— rest of this year which is encouraging. rest of this year which is encourauain. ., ., ,, i. encouraging. chloe, thank you very much _ encouraging. chloe, thank you very much for— encouraging. chloe, thank you very much forjoining - encouraging. chloe, thank you very much forjoining us. i encouraging. chloe, thank you| very much forjoining us. chloe parkin, sina converse at the oxford economics and i think we can bring you some life pictures now of the olympic city. the eiffel tower, the sun is meant to be rising but is looking rather overcast. the opening ceremony is due a bit later today at 6.30 british

summertime, you can watch that on bbc one and it will last under about four hours. quite a long ceremony but lots of exciting things to watch, these athletes will be selling along the river. lets take a look at the markets. some recovery in the asian markets after a big seller of yesterday. we're looking ahead to the us market later on which is expecting to be a bit more positive as well. stay with us here on bbc news. hello there. thursday brought with it quite a humid feel and a lot of cloud across the country. at times, it was thick enough for some heavy rain, some poor visibility across the channel isles and some choppy seas, so not a day for being by the seaside. but as we move into next week, high pressure is going to build. that will quieten things down considerably with some sunny spells around and certainly warming up, particularly down to the south. but for friday, we're still under this influence of low pressure.

still the wind direction coming from the west, so not the warmest of sources. and that is going to drive in a few scattered showers, chiefly to the far northwest to begin with. but as we go through the day, anywhere along the west we'll see those showers drifting further inland, perhaps across east anglia and south east england staying fine and dry, but still those temperatures disappointing for this stage injuly. a scattering of showers into wales, 20 degrees the high here. more frequent showers into northern ireland and southern scotland and some of these possibly heavy. so, temperatures again a little bit more subdued — we're looking at highs of 15—19 degrees. so, that is how we close out friday afternoon. friday evening into the early hours of saturday sees the isobars open up, the winds fall light. clear skies for a time. but we have got this little weak weather front starting to develop, enhancing more showers out to the west but it means low single figures to greet us first thing for the start of our weekend. a quiet start for many,

particularly in sheltered eastern areas but, once again, we'll continue to see a few showers breaking out from the west and these will move through the irish sea into wales, across north west england and into scotland by the afternoon. again, to the east of the pennines, we are likely to see the best of the drier, sunnier weather but those temperatures still not particularly exciting for this time of year — once again ranging from 15—23 celsius the high. but after saturday, an area of high pressure will start to build in from the west. as we go into next week, that's going to quieten things down considerably. weather fronts will try to topple in across the high but all in all, it looks quite decent with that southwesterly flow allowing those temperatures to climb potentially into the high 20s. and for many of us, there's going to be a good deal of dry, settled, sunny weather to look forward to for at least a few days.

good morning, welcome to breakfast with charlie stayt and naga munchetty. our headlines today... the 2024 olympic games officially start tonight, with the opening ceremony taking place later on the river seine. team gb will have 327 athletes

competing, with a target of bringing home up to 70 medals. the independent office for police conduct has begun an investigation into greater manchester police after video footage showed an officer kicking a man in the head. campaigners in favour of assisted dying in england and wales, will again attempt to change the law later today. there's speculation that the cinema giant cineworld could close dozens of locations across the country. so are we falling out of love with the big screen? and some drier weather but a few showers around in the next couple of days but from sunday into next week, more sunshine. i'll have the details later. it's friday 26th july. our main story. the final preparations are being made for today's opening ceremony of the olympic games in paris. the event will see athletes and dignitaries carried down the river seine on a flotilla of boats, in front of around