this is business live from bbc news with rachel home and ben bland. stronger than a house of cards. the streaming giant netflix wows markets as it surges past 100 million customers. live from london, that's our top story on tuesday, 18thjuly. shares in netflix surge during after hour trade — as it beats expectations — boosting its revenues. also in the programme.... renegotiating trade in north america — the us says better access and reducing its trade deficit is at the top of its priorities when taking on nafta. european markets... they are all in the red. all eye to the uk and inflation figures due out in a few hours time. cutting the odds. can artificial intelligence give you the edge in sports betting? we'll meet the man who claims his

algorithms are going to turn the industry on its head. today we want to know how do you watch your tv? on demand or live as it's broadcast? let us know. just use the hashtag bbcbizlive. welcome to business live. we begin with netflix. the video streaming giant surprised investors overnight with its second quarter earnings. the company added 5.2 million subscribers in the past three months, boosting its global customer base to 104 million. it's a company whose growth reflects the changing culture of tv viewing habits around the world. since its transformation from a dvd rental service to video streaming ten years ago, the firm's share price has rocketed — from just over $3 to more than $160 a share. and netflix is splashing the cash — this year it will spend $6bn on content — that's 25% more than its rival amazon is thought to be spending.

it's all in an effort to lure viewers away from traditional tv networks. netflix has been aggressively expanding abroad — and says it is now in more than 190 countries. but with one notable exception — china. in april the firm agreed a deal to licence its content to one of china's biggest streaming sites — which is controlled by baidu. jon porter is the home entertainment editor at tech radar. business live. welcome to business live. so, when there is so many competing demands for time, what is it that netflix is doing that is pulling people in, thatis doing that is pulling people in, that is helping it do so well.m has been concentrating on its original content. it has put out a lot of critically acclaimed shows, like house of cards, stranger things all very popular, that is with these exclusives netflix is prove you to subscribe to them if you want the

original programming.” subscribe to them if you want the original programming. i suppose they have taken original programming. i suppose they have ta ken gambles original programming. i suppose they have taken gambles of productions that otherwise may not have been made. no, that is true, i mean, and interestingly the ceo says they haven't been cancelling enough show, he says they are not taking as many risk as they would like them to. it isa risk as they would like them to. it is a data driven company, that i know what people are interested in and what they want to watch. the shows are calculated on netflix‘s part. we mentioned that netflix is more than 190 countries which is an achievement as the un says, there is only 195 in the world. one country they will be really focussed on is china, we mentioned that tie up with baidu. how significant is that to feature growth china is every market they want to get into, it is a hard nut to crack. netflix is already licensed house of cards through a local provider, but it has been pulled because of censorship concern, so, china is a important

market to get right but difficult to get right. and big competitors like disney are having trouble get into the market. what about the relationship with its competitor, there is an uneasy relationship with hollywood but it is facing competition from amazon prime. that is right. the uneasy relationship with the traditional movie industry has been well documented, netflix of course doesn't allow cinemas to release movies that eare netflix produced. it likes to keep everything contained on its service, that contrasts with amazon prime, they like to get cinemas exclusivity and then release it on their serve, in terms of the netflix versus amazon, it seems as though amazon is pouring a lot of money into origin content, they have done very well, but the amount of content on amazon

isn't as enough as netflix. netflix outspending amazon in that regard. thank you very much. let's take a look at some of the other stories making the news. the us government says that improving its trade balance will be its top priority as the trump administration prepares to renegotiate the north american free trade agreement. the us president has previously described nafta as a "disaster" and officials are due to meet with their counterparts from canada and mexico next month for talks. bnp paribas has been fined $216 million by the us federal reserve. it's the latest bank to be punished over traders who allegedly shared information about currency bids without adequate oversight from their banks. bnp paribas says it deeply regrets the misconduct — which was a clear breach of its own standards. the electric car company tesla has added two independent directors to its board, including the boss of 21st century fox, james murdoch. the move comes amid criticism by some shareholders of a lack of independence on tesla's board. some investors believe that too

many of the company's board members have personal or professional ties to boss elon musk. citigroup has chosen frankfurt in germany as it's new european trading hub, in part of its preparations for when britain leaves the eu. according to various sources, the us bank will present the choice to its board of directors this week for approval. plenty more stories online. harry potter still coining it for bloomsbury. another wizard quarter. total revenues for the three months to the end of may were up 19% year on year. have you read them? well, how can i admit that without... i'm second time round. i have read them all and second time round. i have read them alland i'm second time round. i have read them all and i'm now, second time round. i have read them alland i'm now, iam about to second time round. i have read them all and i'm now, i am about to start numberfour. all and i'm now, i am about to start number four. they are yet to be

discovered for me. indian tax reforms have pushed up the price of cigarettes and hit the share price of to ba cco cigarettes and hit the share price of tobacco companies. lisa is in singapore. what can you tell us about this. india raised the rate onjuly1st. it was the largest tax overhaul since independence. big companies thought they escaped the tax. the indian government have done a big u—turn and increasing prices by as much as 10% or about $12 per thousand stick, the market reaction to this has been swift, itc, the biggest cigarette producer in india, has seen shares tumble by as much as 1596 has seen shares tumble by as much as 15% in mumbai. that is its biggest drop in 25 year, a small rival called godfrey phillips fell by as

much as 10%. last year, these companies also clashed with the government, after they were ordered to increase the size of the health warnings, so they were ordered to change it from 20%, to 85%, and india isa change it from 20%, to 85%, and india is a major market for them, it isa india is a major market for them, it is a $10 billion market so any change is going to be felt really keenly. yesterday, we saw a two year high for asian shares. the nikkei open again today after a public holiday yesterday — remember those solid growth figures out from china — economy growing at a faster—than—expected 6.9% in the second quarter — that's created a steady trading base for asia. the dollar was down as the passage of us health care bill seems ever more problematic and investors feel that the fed is becoming more cautious raising interest rates — now thought to be less than a 50% chance of a rise in december.

in europe — all eyes on the uk when the government will release inflation figures forjune — remember it was 2.9% for may up from 2.7% in april. investors will be keen to see could another increase prompt an interest rate rise from the bank of england. and michelle has the details about what's ahead on wall street today. now, this tuesday investors will learn more about the health as the us economy as a mix of firms publish profits. two giants of the financial services industry, bank of america and goldman sachs report second quarter earnings with higher revenue expected. 0ne firm expected to see a drop in revenue is the tech giant ibm. analysts are worried about increased competition in the artificial intelligence space, and given the trump administration's desire to increase defence spending, how will this benefit lockheed martin?

the maker of f—35 fighterjets is likely to report higher revenue when it releases its profit figures. joining us is kathleen brooks, research director for city index. welcome to business live. nice to see you. thank you. all eyes on the uk inflation, the latest figures. yes, these are the figures forjune, what is interesting, actually, is over the next six months we could see a slight shift in inflation, with pressures starting to dwindle a bit. that is largely because the inflation that has built up over the last six months has mainly come from the drop in sterling last year of the drop in sterling last year of the brexit vote. that was a year ago, that starts to slip out of the index because it is year on year so we could see inflation start to fall. that may not be a bad thing for sterling because it will reduce the squeeze on the consumer one would hope. the weaker sterling and, has benefitted the ftse 100 would hope. the weaker sterling and, has benefitted the ftse100 over the past year, since the brexit vote. of course, you know, has the

strengthens we may see the markets cool off a bit do you think? we have that correlation with pound goes up the ftse falls. it is not as strong it was, it tends to need big currency moves to do that. if it gives rise to consumer power, it should be good news for the ftse 250 which has more uk—based company, the ftse100 is impacted by so many global thing, no commodity prices because of the myners and energy company, the smaller uk index could benefit if we see inflation fall, that, maybe not in month but in a couple of months going forward, this month we don't expect inflation to rise, that is the first time it stays still since march. do you subscribe to netflix? do. i thinki am not it will only person who doesn't, in the whole world. how do their financials work, we doesn't, in the whole world. how do theirfinancials work, we heard figures out today, they have more

than 100 million people who subscribe to pay to watch it, what about their numbers? there is a few things that investors look for, kind of revenue stream things that investors look for, kind of revenue stream is one thing but the subscribers is critical. what that have liked from last night earnings has been international subscriber and they think as a whole it is going to benefit profits and thatis it is going to benefit profits and that is first time ever. if you think how long netflix has been going, it hasn't benefitted because there haven't been enough international subscriber, if they you think only have 104 million there is billions available to them because they are in so many country, that could be a massive growth area, that could be a massive growth area, thatis that could be a massive growth area, that is positive. a slow burner. you will be back to do the papers with us. still to come — cutting the odds. can artificial intelligence give you the edge in sports betting? we'll meet the man who claims his algorithms are going to turn the industry on its head. you're with business live from bbc news. when did you last send a letter?

royal mail's latest trading update says we're sending less of them and revenues are down. but it's better news in the parcel business — helped by online shopping. theo leggett has been going through the numbers. a bit ofa a bit of a mixed post bag? 0h a bit of a mixed post bag? oh dear, yes. it is a mixed bag, and it is for all the reasons that we are only too well aware of. people don't to send letters to one another any more, younger people don't. they prefer e—mail or social media, keeping in touch that way, so, the letters business is suffering. it is falling every year at the moment, over the past, in the first quarter compared to last year they were down 6%. revenues only down 4% because there was a lot of money spent on mailings linked to the general election. but the parcels business is doing very well indeed. that as you said is because or partly because a lot of people are shopping

online and all the par shells —— parcels needs to be delivered. so a mixed bag. any plan update on the pension scheme? royal mail said it would be closing its existing pension scheme to newjoiners from march next year. in place of that it is going to bring in a defined contribution and defined benefit scheme, so two schemes and it says it has discussed these with the unions and the union it works with is convinced this is probably the best deal it will get. the best way for warned will ballot members later in the year. all right, love that report. signed sealed is and delivered by theo. can we stop! return to sender. newjane new jane austen £2 newjane austen £2 coin being launched on this day in 1817 is when she died. 200 years on the royal

mint tweeting they honour her life and works with a special uk £2 coin. also you can see up a the updates on the markets. the ftse opening lower as rachel mentioned. 0ne the ftse opening lower as rachel mentioned. one that we will be touching on in the newspapers later, in the uk, the advertising standards agency wanting to stop harmful adverts including one that perpetuates gender stereotypes. all of that you can read more on on the website. you're watching business live. our top story: shares in the streaming giant netflix have surged in after hours trading after the firm said it now has about 104 million customers. the figure was much higher than had been expected and helped to boost its revenues over the past three months. a quick look at how markets are faring. all of them beginning the trading

day slightly down. here in the uk all eyes will be on the latest inflation figures. we get those later this morning on average prices and we will keep across the markets and we will keep across the markets and bring you updates as we get them. many of us will have the occasional bet on the outcome of a football match or another sporting event. but how would you feel about using artificial intelligence in a bid to help boost your odds? well, our next guest reckons his company is set to revolutionise the sports betting industry and put you firmly in control and ai is at the heart of it all. charles mcgarraugh was a partner in charge of metals trading at goldman sachs before he left to found his sports betting business. stratagem says it uses a combination of data scientists, social media feeds and football scouts to help predict the outcome of games in certain leagues. the company is looking to launch a hedge fund which would use the stratagem platform to bet on behalf of investors. this would only be the second hedge fund of its kind to launch in the uk.

the first, centaur, closed down in 2012 after only two years of trading. charles mcgarraugh, chief executive, stratagem technologiesjoins me now. charles, so, firstly, how does it work? how do you make the predictions when and where a goal is going to be scored or a tennis match point is going to be won? think of oui’ point is going to be won? think of our core asset point is going to be won? think of oui’ core asset as point is going to be won? think of our core asset as like a giant pipe. at one end you have a big funnel that takes in data streams of all different kinds. so we have action data, which are the events that are happening in the games. and then you have market data or the prices that are moving around different sorts of wagers related to the action data and then you have all sorts of other data, some of which generate using oui’ data, some of which generate using our football scouts and we take sports journalism our football scouts and we take sportsjournalism and our football scouts and we take sports journalism and social media. that's one end of the funnel. through the pipe then, you take that

data, you make it in a way that it can talk to each other and then you start to extract information using various machinery and techniques and modelling techniques and then at the end of the funnel out pops a zero or one 01’ a end of the funnel out pops a zero or one or a sell or a buy. you want to launch a hedge fund to use the platform to bet on be—of investors. some might say that's irresponsible. this is people's money or pension funds. this is just this is people's money or pension funds. this isjust betting on the outcome of a football match? yes, i think it's an interesting line of reason. we take a different view which is that sports lend themselves really well to process driven analysis. it is the same thing again and again or things that are quite related the it is a highly structured environment and there is a lot of data because the same thing happens again and again and unlike a stock or a treasury bond or a commodity where the price can move a

lot and stay irrational for a long time, a football match is 90 minutes. the short duration of the asset class lends itself very well to this analytic process and it is risky, but that's why risk management and thoughtful process around that is key. how did you get into it? were you a big betting man yourself on sport? i have a passion for markets. so i'm, i traded lots of dimp markets over the —— different markets over a long career and to maorks sports are, it is like another risk that you can trade and risk manage around. so my friend actually founded the company a few yea rs actually founded the company a few years back and spent this time building infrastructure processes and hejoined building infrastructure processes and he joined me building infrastructure processes and hejoined me to run and grow the

business while he resources the business while he resources the business side. what makes you think that your company can be a something ses? i can't speak to what happened with the other company. i don't know them. i don't know their history. we can be successful because we have signal processing in the same way that any qan tative trading shop would any other business and hedge funds succeed spectacularly and fail smarly. i hope we are in the first bracket and not the second. what football tea m bracket and not the second. what football team do you support? personally, arsenal. 0h football team do you support? personally, arsenal. oh well. bad choice! nice to see you. thank you. in a moment we'll take a look through the business pages, but first here's a quick reminder of how to get in touch with us. the business live page is where you can stay ahead of all the day's breaking business news. we'll keep you up—to—date with all the latest details, with insight and analysis from the bbc‘s team of editors

right around the world. and we want to hear from you, too. get involved on the bbc business live web page: bbc.com/business, on twitter @bbcbusiness and you can find us on facebook at bbc business news. business live on tv and online, whenever you need to know. what other business stories has the media been taking an interest in? kathleen brooks joins us again to discuss. so, new york times, we have got looking at the nafta overhaul plan? the trump administration unveiled a list of objectives it wants to get from the nafta deal. what is worrying for us in the uk is that i think the thoughts about the objectives is they are quite protectionist. it is like the president really likes his barriers.

he is really sending a clear signal that the us isn't going to run massive deficits. you are going to have to take our stuff and we will ta ke have to take our stuff and we will take less of your stuff. what is interesting, yes, 0k take less of your stuff. what is interesting, yes, ok the us has got a deficit with mexico. but they have a deficit with mexico. but they have a surplus with canada. exactly. he does well out of it with canada, but not as well as he would like to with mexico? well, this isn'tjust about nafta, he is using that as a template for the rest of the world, probably as a direct link to china. it is very interesting at this stage to see how the us are negotiating the new trade deals because we want a trade deal with the us so it won't bea a trade deal with the us so it won't be a walk in the park and it doesn't necessarily mean that the us will ta ke necessarily mean that the us will take all of our exports, but this nafta deal is a template for something broader. it is sending a clear message to the rest of the world, the us isn't going to be

taking in products anymore. he is renegotiating and then etc‘ not. this is the trump administration. the story in the daily telegraph in the uk. about to plans to pull the plug on adverts that per pet wet genderster owe types. a woman in a bikini and it was deemed to be sexist. how do you judge what is sexist? it is a complicated story. they don't want to propel the gender stereotypes, women cleaning up after theirfamilies or stereotypes, women cleaning up after their families or men stereotypes, women cleaning up after theirfamilies or men being engineers, that type of thing. i guess, you could argue are they trying to change the world or late to the game? it is reflecting more of the real thing. if a man cleans

table of the real thing. if a man cleans ta ble after of the real thing. if a man cleans table after breakfast, no one thinks anything of it. there is more splitting equally between household tasks and more women are going into traditional male roles. this is a reflection of reality as well as a need to stop. i was reading an article and it was a future scholar and a ghirla article and it was a future scholar and a ghirl a butterfly dress and it was, "qurfuture and a ghirl a butterfly dress and it was, "our future starts and a ghirl a butterfly dress and it was, "qurfuture starts here." and a ghirl a butterfly dress and it was, "our future starts here." they withdrew it. a lot of adverts have been withdrawn because of that. these companies would be wise to ta ke these companies would be wise to take heed of this article because it could save them a lot of money in advertising down the road. it goes too show how important advertising is to our lives. it it is that's a long time coming, i think. netflix is the top story. we were asking our viewers whether they watch streaming on demand or traditional telly. loads of responses. luke says, "i

tend to watch tv as it is broadcast live. i use catch—up when i need t°_" live. i use catch—up when i need to." simon says, "i watch almost exclusively streamed tv. mark says, "either really. generally recorded. a bit of on demand maybe. " lots and lots of tweets. netflix have achieved the ultimate accolade, they have become a verb, netflix and chill. that's what i'm going to do after this programme. 0ther subscribers are available. kathleen, thank you very much for going through the stories with us. thank you for the tweets. more business throughout the day. we will be back tomorrow. see you then. bye—bye. hello there. good morning, we have

got another warm and sunny day across many parts of the united kingdom. but as the warmth starts to build up today there is the risk later on of seeing some stormy weather moving into the south—west. already we are starting to see showers and storms developing around the bay of biscay. it will move its way northwards. before that, the oranges build obthe map. it is turning warm out there already. through the morning, we will see higher cloud across central and southern areas making the sunshine hazy. the best of the blue skies will be across the far north. so for scotland, lots of sunshine here. temperatures in the west getting up to 25 celsius in glasgow. fresher along the north sea coast, fresher too in north—eastern parts of england, but for northern ireland, north—west england, plenty of sunshine and those temperatures into the mid—20s. we will get up into the high 20s across southern areas, but by this stage in the afternoon, we will just start to see showers and

thunderstorms moving into south—western parts of england. those will push their way northward as we go through tonight and you maybe woken up in the night from frequent lightening, some really gusty winds and torrential rain and hail as the thunderstorms move their way further north into the early hours of wednesday morning. 0vernight temperatures across southern areas staying 17, 18 celsius. 13 or 14 celsius further north. during wednesday we could start off with showers and thunderstorms in north wales, northern england and pushing up into scotla nd northern england and pushing up into scotland and northern ireland where more rain spreads in from the west. so quite a complicated mixture of rain, showers and thunderstorms in these north western areas, but in these north western areas, but in the south east, another hot day. temperatures up to 30 celsius, fresher though the further north and west you come. temperatures 15 to 18 celsius. that fresher weather is coming in behind the cold front. all of us starting to see that fresher weather as it spreads its way through. so during thursday there

could be showers early on in eastern areas. those will clear and more rain coming in towards the west. notice the temperatures back down to where they should be for the time of year. noticeably fresher. 0n where they should be for the time of year. noticeably fresher. on friday, heavy rain moving its way into northern and western parts of the uk. that's going to spread its way south and east, but there will be sunshine at times. again the temperatures in the high teens to low 20s. that's it from me. bye—bye. hello, it's 9 o'clock, i'm victoria derbyshire, welcome to the programme. our top story today — survivors and relatives of those who died in the grenfell tower fire have only received a small amount of the money and items donated by the public. we'll find out why. also on the programme — campaigners calling for the urgent suspension of vaginal mesh implants in england are taking their case to parliament today. it follows the exclusive coverage of the issue on this programme.

iam i am registered disabled. i am doubly incontinent and i have no control over my bowel 0rr bladder. i won't leave the house until i know miss bowel is empty. plus — this is enid.