this is business live from bbc news with susannah streeter and rachel horne. banking on better times — wall street's giants have been getting a bump from trump, but what will their latest results show? live from london, that's our top story on friday 14thjuly. will profits soar for three of america's banking big guns? and what will they tell us about the state of the world's biggest economy? also in the programme, the company behind many of amazon and alibaba's warehouses in asia and the us is set for an $11 billion takeover. and we'll have the latest from the financial markets — this is the picture in europe as stocks around the world are poised to end the week on a high. and as the uk is warned that its public finances are in a perlious state, we'll be getting the inside track on that and the other big stories

of the week with our economics editor kamal ahmed. also today, as the payments giant visa vows to put cash out of business, we want to know what do you still need coins for? let us know — just use the hashtag #bbcbizlive. hello, and welcome to business live. we start on wall street, where three of the giants of us banking report their results later today. we are talking about wells fargo, citigroup and — the biggest of them all — jp morgan chase. investors have been betting that the good times are back for america's bankers thanks to the election of donald trump. that's helped stock markets hit record highs. but are they right? well, today's results could give us a better idea. take a look at these share prices — especiallyjp morgan's — since president trump was elected. they all got a boost from hopes he would help the us economy grow, and interest rates would rise. the slow pace of policy change has, though, cooled that

enthusiasm a little. in particular, president trump has promised to scrap the heavy regulation of banks brought in after the financial crisis in 2008. but his new more lenient rules, the financial choice act, are unlikely to get through congress in their current form. what could help the case is that the top banks all comfortably passed so—called stress tests last month. it basically means they've been judged financially solid enough, with ample money in reserve to withstand another financial crisis. and those tests could be eased in future. this week president trump nominated this man, financier randal quarles, for a leading role in overseeing the banks at the federal reserve. he's seen as much more sympathetic to big banks. ken odeluga is a market analyst at city index. thank you for coming in. let's start with the main bit, these results are coming out in a few hours, what are

you expecting to hear? this is in many respects are holding water for the large six banks, we have these today and next weekend the last of the three. we are really only expecting growth in terms of earnings forjp morgan and citigroup. for wells fargo and bankamerica, they are more likely to report earnings which are flat compared with the same quarter last year. so really reflective of the fa ct year. so really reflective of the fact that generally speaking second—quarter earnings, first—quarter earnings are not necessarily the best banking earning quarters for the year, and really we are getting stronger results from jp morgan. susannah showed us some of the figures of where the share prices have been going up, notjust affected by the results put external factors like donald trump's

election, the financial choice act, something the banks were looking forward to, explain why they wanted and how likely it is to happen? for many years banks have either complained or lobbied, i should say, that the low interest rate environment that we had up until the end of 2015 and also cumulatively probably the strongest regulatory regimes seen in decades had served to really crimp their net interest margins, the margins they actually managed to retain from lending and borrowing as profit. the reason why they wanted the deregulation was that it would enable them on the basis that they had strengthened their capital and were complying with all sorts of other rules, enable them to start to grow again. but of course that has got stuck in the logjam in washington. let's talk about the banking stress tests, we hear they all passed them with flying colours but how true are

they? before the financial crisis many of these banks passed the stress test. can we really be a certain they could withstand another shock? there is always a possibility that of course many of them would not be able to withstand that shock but the fact is that many of the stress tests were the toughest stress tests were the toughest stress tests were the toughest stress tests in many ways of any stress tests in many ways of any stress tests in many ways of any stress tests that have been held on these banks, and the fact they passed speaks to the fact they have been forced to take all sorts of measures, dealer bridging, production of risky capital, asset sales, that sort of thing, that contributed to their ability to pass and, going forward, the stress tests, the difficulty will be ratcheted up yet again to a more qualitative level in a way that it is not necessarily just qualitative level in a way that it is not necessarilyjust rules—based but based on their ability to demonstrate that they are compliant

in spirit with what is required. i think we can have a bit more confidence in that. 0k, thank you for your time. let's take a look at some of the other stories making the news. visa is set to offer up to $500,000 to a selection of us—based companies willing to stop using cash as a form of payment. 50 restaurants and food vendors will receive $10,000 each as part of the challenge. visa currently processes 59% of all card payments in the united states. a racist aianb host has been fined $5000 by authorities in california after she discriminated against an asian—american guest. tami barker cancelled dyne suh's booking, telling her in a message, "one word says it all — asian." the fine was imposed due to a new agreement between aianb and california's department of fair employment and housing. singapore's economy has narrowly dodged a recession after strong electronics exports helped it grow in the second quarter. it grew byjust 0.4% between april and june. revised figures show it had a sharper than expected contraction

of 1.9% in the first three months of the year. two quarters of contraction in a row constitute a technical recession. the company behind many of amazon and aliba ba's warehouses is asia and the us is set for an $11.6 billion takeover. global logistic properties, which is based in singapore, is the largest warehouse operator in asia. let's get more from monica miller in singapore. this is a pretty big deal? it is, set to be asia's biggest ever private equity deal. global logistic properties have sealed the deal for more than 11 billion us dollars. the industrial property company has been aggressively expanding over the last two years due to the growing demand of online shopping. they currently have distribution centres in china,

japan and brazil and part of that is a development company in the us which has warehouse properties in several different states and some of their largest tenants are amazon, starbucks and williams and sonoma. but the warehouse operator makes two thirds of its revenue from china where it has a dominant market position. the offer is well above the firm's market value of more than $9 billion. 0k, monica, thank you very much. let's look at the financial markets. global stocks are scaling record highs — equities in asia rose for their fifth session in a row. the nikkei ended higher with a weekly rise of 1%. the head of the fed, the us central bank, janet yellen, said this week that us interest rates will continue to rise but she's in no rush. that was welcome news for many investors, who don't want to the era of cheap money ending quickly. her comments have pushed up stocks in europe as well this week — this is the picture

so far this morning. a weaker opening in frankfurt but france just about in positive territory. and samira hussain the details about what's ahead on wall street today. 0n on friday there are a few bits of economic data coming out that we should pay attention to. cpi, the consumer price index, forjune is expected to go up 1.7%. that is good but lower than 1.9% increase we saw backin but lower than 1.9% increase we saw back in may. the core cpi, which strips out food and energy costs, is forecast to go up 1.7% on a year—on—year basis after making a similargame in may. year—on—year basis after making a similar game in may. also coming out oui’ similar game in may. also coming out our retail sales numbers, and it seems it may have gone up just a bit in the last month. after falling in may. call retail sales, sales excluding autos and building materials, gas and food services, forecast to go up about 0.3% for

june. finally, pnc financial services group based in pittsburgh, pennsylvania, is expected to report a rise in quarterly profit topped by a rise in quarterly profit topped by a higher interest rate income and higher income from commissions and fees. joining us is lucy macdonald, chief investment officer in global equities at allianz global investors. let's start with the nasdaq, i'm not sure if it was you or someone else in the studio a few weeks ago, we we re in the studio a few weeks ago, we were discussing issues with the nasdaq starting to fall off, but it seems to be ticking back up again? yes, it is the strongest sector in the markets this year, up about 16%. markets generally in the us sector at nine so it has definitely been the place to be. but it is not that much more expensive because underlying earnings have outperformed as well and as we go into the season when investors focus

on seeing how deliverable high levels of growth are, so you see facebook growing 30%, amazon a similar level, and the whole issue is whether that rate of growth can be sustained, said that is what we will all be looking at, seeing how that plays out. and that will depend on innovations coming through down the line. it is unlikely there will be key disrupters eating away at those big players‘ earnings. it is very ha rd to those big players‘ earnings. it is very hard to compete? the rate of mobile and digital advertising is what is driving facebook in particular and you can see that is still growing very quickly so the demand is still there. you should get some warning if it is going to slow down, you would think, because we do get quite regular updates. but that will be the focus for investors. let‘s talk about janet yellen, head of the us federal reserve , yellen, head of the us federal reserve, she has been speaking this week. what did she say that piqued your interest? she slightly changed

her tone on inflation, which was interesting. the expectation has been that inflation will be trending slowly upwards but her description of it was slightly different, she was saying that maybe some of the downward issues are a bit more structural, she mentioned drug prices, so i think there is a bit of a change in tone there but still a bit of uncertainty about white wage inflation is so subdued and it is highly likely it could be technology but we don‘t really know at this stage so if we are a little bit in the dark, and i think the fed is also just watching and seeing how things develop. do you think this wage stagnation is why she said interest rates will rise but not as quickly as people thought initially? exactly that, it has been a huge focus, seeing how employment is developing, that is one of the

objectives of the fed, employment as well as price stability, so watching the labour market and how it develops, something there is huge focus on, and they have been surprised about the fact that wages have not really followed up. 0k, thank you very much for now, you will be coming back to blog about the papers‘ stories, particularly why we still need cash in our society after these are saying they wa nt to society after these are saying they want to aim towards a cashless society. we will have to see what you still need cash for. certainly school fires! you have got to pay for your bouncy castle with cash! not contactless, unless it is a very poor school! we will get the inside track on all the big stories of the week, still to come. you with business live from bbc news. a recent graduate from ucl has won the 2017 wolfson economics prize. the competition posed the question, "how can we pay for better, safer,

more reliable roads in a way that is fair to road users and good for the economy and the environment?" the 27—year—old is the youngest winner of the £250,000 prize. well, let‘s find out more about the winner with the wolfson prize directorjulian glover. what did he come up with, what was his key idea? his key idea was that way we pay for roads right now, the money is falling away, we have to get rid of it, scrap petrol tax, scrap the charger has in the uk to have a car on the road and come up with a simple, clear intelligent way to charge people as they drive, and not to load people with tonnes of technology and is systems, things that would cost a lot and be ha rd to

hard to introduce, but do it through insurance payments. we all make them at the moment, you could link it to distant and have a simple, clear bill, which would get more money into roads, fund them better, fix potholes which are a big problem, get them serviced properly, invest in new roads and without a huge piece of technology. give us a sense of the importance of the prize, who has won it before with what ideas and have they been implemented? has won it before with what ideas and have they been implemented7m is an important prize, a big prize, a quarter of £1 million, and the aim is to take difficult policies, things government are afraid to get involved in, politicians backed off but we know they need to be sorted out, so one of the once we had a couple of years ago was about housing, how do we build new housing the uk which people are happy with, people who live nearby are happy with, we create decent communities without battles over planning, which seems to be the way we do it. that put forward new ideas for shaping the city of oxford and people in 0xford are working on that now, and i hope with this roads prize, in government there is huge amounts of

interest so it is notjust about publishing an idea and leaving it but getting inside government, working with politicians and drawing on some other ideas. we had 120 ideas from around the world, america, australia, asia, getting the best of their thought as well, work and good government in the uk and elsewhere to sort out the problem. julian gover, wolves and prize director, thank you for your time. that winning prize that he could get rid of britain‘s potholes within five years, quite a challenge! interesting to see how things will change with electric cars. more business news on the tablet. you‘re watching business live. our top story... investors are watching wall street, where three of america‘s largest banks are due to publish their latest results shortly. a quick look at how markets are faring.... it is bastille day lynne france, a public holiday, but the cac a0 is still open, it is the only market in

the green, it is up 0.15%. and now let‘s get the inside track on all the big economic stories of the week. starting right here in the uk where the public spending watchdog is warning that the uk‘s finances are in something of a perlious state and that brexit is making the risks all the greater. 0ur economics editor kamal ahmed is here. kamal, let‘s talk about these warnings. interestingly, the office for budget responsibility, 0br, said it is not necessarily the brexit divorce bill which could be the sticking point, it is more the trading relationship going forward? it said the divorce bill, if it is the size and people think, which might be like 70 billion euros to 100 billion euros, would be a one—off head to the public finances but not substantial. 0f one—off head to the public finances but not substantial. of much more concern is britain‘s ongoing economic relationship with the rest of the eu, britain‘s largest trading partner. what is interesting about the 0br report, the international monetary fund has said all countries should

look at what they call fiscal risks. the us desert, australia doesn‘t, canada does it. it is about understanding, if there is a big shock, how well—prepared is your government and your public finances to combat those risks? what they have found for the uk, this is very similarto so many have found for the uk, this is very similar to so many western economies, high levels of debt, still running a deficit. if there is a shock to the system, like a brexit shop, or a new housing crisis if house prices slump, a recession, how fixed with those economies be to be able to act on those? we have been ina able to act on those? we have been in a situation where there is not a lot of money left on the banks. in a situation where there is not a lot of money left on the bankslj spoke to robert choate, the head of the 0br, yesterday. he said raging population will pose a big fiscal risk, health, it is something perhaps people are not thinking about with the focus on brexit —— he has said an ageing population will pose a big physical. brexit is a

short, medium and long—term issue. it ageing populations, health and social care needs, they are challenges for all governments, how to fund the fact that we live, frankly, a lot longer and health costs are rising rapidly. stephen king, the hsbc economist, said what happens when the money runs out? the problem is we are not yet clear. we are in an ultra—loose monetary situation with very low interest rates. but there is no more of that available if there is a big problem in the economy. let's talk about protectionism, we had headlines this week, germany is tightening the rules on takeovers by non—eu companies? it is an interesting debate, is the world becoming more protectionist, should it become more globalised? protectionist, should it become more globalised ? germany protectionist, should it become more globalised? germany made an announcement this week that it will have more control over takeovers, particularly when they describe

there is technology at stake in germany could lose intellectual protection over the property it has. with one hand chancellor angela merkel says we need to be free trade, but all economies are national and all governments have to face their national populations, their voters, so with one voice they say we should be more open, but the fa cts o n say we should be more open, but the facts on the ground are often much more protectionist. there are six on the other side, the eu hasjust signed an outlying free trade agreement with japan. we have seen president trump has been here with president trump has been here with president macron affronts, no real trade announcements came out of that. we know america has already pulled out of the transatlantic possible deal between the eu and a yes —— and the us. there is a concern that globalisation has too many behind and people voted for people like donald trump because they were worried about it. lots of

is out there, this latest german move is about protecting home markets. most people warned that if you do that to too great an extent, it will be damaging to the global economy. you had a story about china putting $53 billion back into the banking system, which was a bit of a u—turn? china has been signalling it might be tightening the way it regulates banks and the amount of support for banks, but the chinese central bank, too much relief to many who watched the chinese economy, has announced a new injection of cash. some of the banking regulations they announced will be delayed. 0f banking regulations they announced will be delayed. of course chinese banks are carrying a huge amount of debt, if they are seen as a problem it can be damaging to the chinese economy, and anything damaging to the chinese economy is damaging to the chinese economy is damaging to the global economy, so some relief at the slight monetary loosening. thank you for coming in and casting some for us. also in business this friday... who needs four wheels

when you can have three? the tuk—tuk or auto—rickshaw started life in italy in 19a7 but now dominates asian roads from india to indonesia to thailand. now indian manufacturer atul is punting the little machine as a cheap solution to africa‘s transport problems. it has set up assembly plants across the continent. we went to one in port elizabeth, south africa. behind me other vehicles in the condition which they arrived from india, then they are flown into a full manual assembly line. that assembly line is purposely designed in that manner because it creates employment and gives us the necessary personal controls in the assembly line. the top three in our check list, the first one being unemployment. the second is the ability to empower people to start micro—businesses, not only locally in metropolitan areas but also rural areas. thirdly, the contribution to society. the whole idea is to try to get different vehicles to provide

specific services to these communities. all we are trying to do with this vehicles is to ensure that those communities... we have game plans to navigate those areas, they are the responses to the problems we have seen. it has happened almost throughout africa. what other business stories has the media been taking an interest in? lucy macdonald, chief investment 0fficer, global equities at allianz global investors is joining us again to discuss. lu key, let‘s lukey, let‘s talk about a story to do with the financial conduct authority in the uk, changing the rules about a possible listing. why is it significant? because of the reputation of the uk is having some of the highest levels of corporate governance in the world. that is quite a hard one... a hard

reputation. so for that reason, investors are very interested to see thatis investors are very interested to see that is maintained. and this change ofa that is maintained. and this change of a new type of premium listing, thatis of a new type of premium listing, that is a normal listing on the stock markets, this would be a different sort, specifically for sovereigns. with lower standards of governance, lower standards of investors being able to influence the independent directors and also of transactions within the company. why do you think they are so prepared to bend the rules? why do they want aramco‘s listings so badly on the london stock exchange? commercial reasons. it is going to be huge. we are not sure how huge, but if it were even half of the 2 trillion mentioned, it is very significant. let's talk about the

new incentive unveiled by visa to push cashless transactions. we asked why you still need cash. our friend jeremy from world first says, "can‘t flick a debit card into a fountain for luck!" liz says car park machines, vending machines, farmers market, pocket many decades, car boot school payments. there is a psychological view about cash, people using cash are more careful about what they spend. removing it completely, about 30% of transactions is cash, if you remove it completely there could be more of a consumer credit problem than already. kerry says, "because technology often doesn‘t work and you‘re left holding a bit of plastic and no options." and you spend more. thank you for coming on to the programme, fed. enjoy spending your money, whether

it is cash or card, this weekend. good morning. there is a fair bit of cloud this morning, with 12—macro showers. conditions improving through the day, becoming mainly try with more sunshine and becoming quite warm, especially in the south. high pressure still influences the weather. you can see the weather system in the atlantic will bring rain across the north and west later in the day. during the day most of seeing sunshine as the cloud continues to dinner and break, with thejuly continues to dinner and break, with the july sunshine being continues to dinner and break, with thejuly sunshine being strong enough to work its magic to allow the sunshine through, especially across the south. across the northwest for northern ireland and western scotland, already by around apm we will see outbreaks of rain. try further towards these, temperatures climbing to the high teens. into england and wales, some decent sunshine, a bit breezy than late but temperatures reaching the high teens. for the south—west of england, for devon and cornwall, decent spells of sunshine. along the

south coast towards the south—east, temperatures could climb to 20 or 21 celsius. for wimbledon conditions looked to be set about this afternoon, fairly cloudy to start but the clouds filling and breaking to allow sunshine through, especially by the evening, temperatures climbing to 20 or 21 celsius. rain across the north—west spreads further south—east through the evening, more cloud across the country, mist and murk over hills. driest for longest across the south, temperatures tonight holding up in double figures for most. it means the weekend starts fairly cloudy, quite damp across the northwest. rain most persistent across the highlands, islands, north—western england. across the south—east, dryer with brightness developing and temperatures climbing to the low 20s. looking at the high teens, widely. tomorrow night, there will be some rain. that is spreading further south—east. by sunday there will be sure rain around for a time but

temperatures will improve. it looks like sunday will be the better day of the weekend for now, largely dry, clouds filling and breaking to allow the brightness through and becoming humid. temperatures in the south—east could reach the high 20s. this weekend is cloudy and muggy, rate for the northwest, warm and humid further south. —— rate for the northwest, warm and humid furthersouth. —— rain rate for the northwest, warm and humid further south. —— rain for the northwest. that is your forecast. hello it‘s friday july 1ath, it‘s 9am. i‘m joanna gosling, welcome to the programme. more acid attacks in london — police are investigating five attacks overnight which involved corrosive substances being thrown in people‘s faces. this was a shocking attack last night. somebody‘s left with life—changing injuries, and this is something we‘ve been concerned about in the home office for some time. as the government launches a fresh crackdown on drug use, we speak exclusively to a woman whose son was groomed by gang of dealers. i would ask where he‘s been, he wouldn‘t say anything. just literally his manner towards me wasn‘t very nice.

what i would call from an angel child turned into a monster. you can hear the full interview shortly. and, they wanted their wedding dance to be knock—out.