this is business live from bbc news with ben thompson and sally bundock. embattled electronics giant toshiba has finally reported its long—awaited earnings, but with losses mounting does the firm have a future? live from london, that's our top story on the 10th of august. analysts warn the “40—year—old iconicjapanese firm is still facing serious challengers. we'll talk you through toshiba's latest revelations. and facebook versus youtube. the social media giant goes all out to woo tv viewers. markets in europe are open and trading but very mixed. we are going to find out

how one man used his skills combating insurgents in the army can now sell us all sorts of things including the ft. as facebook launches a new video service, we wa nt to launches a new video service, we want to know what would you watch on social networks? what tv shows would you watch? let us know. welcome to the programme. as usual it's action packed. toshiba has reported its much—delayed earnings — finally reducing the risk it will be de—listed from the tokyo stock exchange. the embattled electronics firm posted a loss of $8.8 billion for the last fiscal year. it follows an accounting scandal and massive writedowns. so, what's gone wrong for the “40—year—old japanese giant? two years ago an accounting scandal

was revealed that led to the resignation of several members of the firm's senior management, including the boss. the company was found to have inflated the previous seven years profits by $1.2 billion. problems came to a head again this year, when toshiba's us nuclear unit, westinghouse, was forced to file for bankruptcy protection after suffering a $13 billion cost overrun. it's proving pretty difficult to find a buyer for westinghouse. in a desperate move, toshiba has been forced to put up for sale its prized chips unit. this is a major part of its business — making memory chips for smartphones and computers. it's been valued at about $18 billion. this has taken its toll

on the company's share price which has effectively halved, and in april toshiba actually warned that its survival may be at risk. with me is pelham smithers, managing director of pelham smithers associates. welcome to the programme. a lotto details about why we are where we are with toshiba. but some relief i suppose today that they have finally posted the earnings. this is just have finally posted the earnings. this isjust one have finally posted the earnings. this is just one of their challenges. that's right. they faced separate problems. the first is whether there are accounts would be qualified by the accountants. the other question is an ongoing investigation by the tokyo stock exchange into whether or not the company has been improving its internal controls. they've overcome the first hurdle, they've got the

second to come. it doesn't mean their future is secure? it doesn't. evenif their future is secure? it doesn't. even if they manage to get the tokyo stock exchange to agree their controls have improved, they still have the problem that they have a negative net worth, so they need to reverse that situation. the only way they have of doing that is to sell their memory business. we've seen their memory business. we've seen the dithering about trying to sell that and who they might sell it to. let's talk about westinghouse, that's been the bone of contention for toshiba and the source of the problems. cost overruns, delays, talk us through it. it started off when they paid too much for it in the first place. they then became aggressive in bidding for nuclear contracts around the world. having been aggressive they then got hit, first by the earthquake which caused construction costs to go up and greater safety requirements. it also

meant several countries decided not to go ahead with plans limiting them to go ahead with plans limiting them toa to go ahead with plans limiting them to a handful of important projects. those projects run into trouble because they used a new untested technology and guess what, production costs went through the roof. in some respects, putting out the figures they've put a barrier around that. we know the cost associated with it and they can hopefully move on. again, the future of toshiba isn't assured. they have ring fenced the cost overruns to date but that doesn't necessarily mean there won't be any more in the future. they have a big issue in the uk with moorside and the cost of that going up. while they are negotiating that project that's fine, but imagine if the costs went up fine, but imagine if the costs went up after they fixed it. everyone is very excited about the sale of memory chips but that is incredibly cyclical business. where will it be this time next year? it's

fascinating and you realise how a giant like toshiba can face such problems putting its future into question. thank you. let's take a look at some of the other stories making the news. the owner of fox news and 21st century fox movie studio looks to have benefited from a trump bump. fox said revenues were up 1.5% to $6.8 billion in the fourth quarter after ratings at its cable tv business improved and drew in more advertisers. toy brick maker lego is to appoint its second boss this year. 61—year—old brit bali padda has been pushed aside by the danish company afterjust eight months in the hot seat to be replaced by a younger man. he said he was never expected to stay in the post long term. the new chief will be 51—year—old niels b christiansen. zurich insurance has posted a 21% rise in 02 net earnings. the swiss insurer set out a turnaround plan last year and its latest numbers suggest it's already reaping the rewards. net profit for for the three months to the end ofjune climbed to $896 million,

that beat the average analyst estimate of $790 million. facebook has announced plans for a new tv service — putting it head to head with services like youtube and netflix — but could this also help the social network crack asia? monica miller is in singapore. what is facebook actually doing now? the social media giant is hot on the heels of other companies, netflix and youtube, as well as traditional tv networks. it will first launch in the us but eventually friends from across the globe will be able to see across the globe will be able to see a range of shows including a safari programme from national geographic and professional sports like women's basketball. users will also have a chance to connect with other friends and dedicated groups. they hinted

last year something bigger was in the pipeline. it has been reported facebook has signed deals with groups like buzzfeed. it is expected to open up new revenue potential for facebook and programme makers in asia and around the world, that could mean you will have to sit through commercials in between the show and before the show begins. there you go. we know what that's like! tell us what you think about that story. we are asking what you would be watching on facebook but also what you think about that. give us your thoughts. now the markets. flat forjapan. toshiba is a story that has dominated the day. elsewhere it big loss in hong kong. in europe right now it's a fairly similar picture.

markets are in a funny place. it's the middle of august so many are away on holiday. trading volumes are thin. we've also got this sabre rattling going on between the united states and north korea which is causing everyone to put their money in safe places during what is often a volatile time. when things happen they tend to be really exaggerated. let's have a look at the day ahead on wall street. rising tensions between the us and north korea gave the market an excuse to pull back. now, this follows a period of record highs for us stocks. investors, though, will have more than geopolitics to focus on this thursday. one question — is the retail sector ready for a comeback? several big department stores, from macy's to nordstrom to kohl's, all reports second—quarter results, and they're struggling with competition from online retailers, as well as discount shops, and that has led to less people going to the mall. add to that the big picture, which has been weak — retail sales have fallen for two

months of the second world, so expectations, it's fair to say, aren't high. on the tech front, snap reports results. since it went public, there have been concerns that it is not doing as well as rival instagram, so expect investors to eye snap's daily active user numbers for any sign of a slowdown. joining us is maike currie, investment director at fidelity personal investing. nice to see you. sally called it sabre rattling and it really has rattled markets, these tensions between north korea and the us. markets have been shaken out of the summer markets have been shaken out of the summer lull. we saw yesterday that move into safe haven assets. that has cooled down a bit today but there's still some nervousness. there is a question over whether we will see a correction or even a

bigger market collapse. what are you saying about that at fidelity? there isa saying about that at fidelity? there is a real debate going on. there is still a lot of money in cash and fixed income and bonds. there's a lot of money on the sidelines. we really need to see that money moves into the market before we can talk about a correction. the painful thing is it's in these final stages where investors can actually make the best profits. as always, you can never call the end of the market. but a lot of them are a way, it's one of the quietest times of year right now. is that the danger zone, is that the time when a lot can go on? absolutely. we saw this two yea rs on? absolutely. we saw this two years ago in china. in the summer in august, when a wasp in trading going on and we had the tensions and worries about debt levels in china, it really rattled markets. we will see if the tensions between north

korea and the us has the same impact. thank you. you'll be back later to talk about lego. still to come — using psyops to sell baby products. we speak to the man using military intelligence skills to run a marketing agency. you're with business live from bbc news. we are in earnings mode in the uk still. we've had news from the co—op. the co—operative bank has posted a £135 million loss in its first earnings report since a rescue package ended plans to sell the bank. but the bank continues to lose customers. our business editor, simonjack, has been going through the numbers. simon, loving the trainers! talk us through the co—op. simon, loving the trainers! talk us through the co-op. i've just got off

the train! the co—op bank, is it turning the corner? yes and no. it's still losing money. it is narrower than the loss they made last year. they've been spending a lot of money on trying to knock it into shape. it had a near death experience in 2013 when it discovered a £1.5 billion hole in its finances. that led some of its investors to pump in additional money. in february they said they aren't turning it around, they were putting it up for sale. they didn't get any buyers said the existing bondholders have agreed to sink £700 million of extra capital into the bank. that will see the co—op group, the ethical mutual group which used to own the co—op bank, c at stake reduced from 20% down to nearly 0%. the question is is this still the same co—op a lot of customers like with its ethical stance? we've seen some of that in

customer numbers, 25,000 customers out of1.4 customer numbers, 25,000 customers out of 1.4 million current account holders decided to close accounts. that's not a stampede but it is a trickle. i was listening to the management talking today and they are at pains to stress they will continue their ethical stance. it's the one thing that sets the co—op apart. it may not be the co—op we know and love but they say it will look and feel the same. we've got to hope now this uncertainty is over, they are going to get an infusion of new capital in september, that the bank will be safe and behave like it a lwa ys bank will be safe and behave like it always has, and they will be able to hang on to customers. in total both got 4 million with either a council mortgages. you get the impression this story is going to run and run! he's got the right shoes on! you don't want to know what i am wearing under the desk! you know why i am standing today!

news on the website that blockbuster films have boosted cinema revenues by nearly 20%. you're watching business live, our top story — japanese industrial giant toshiba has met a deadline to report its long—awaited earnings results, which may save it from being delisted on the tokyo stock exchange. that is after a major accountancy scandal that was revealed two years ago. by publishing them, it will save them from being delisted from the tokyo stock exchange, which was a real worry. the figures are not great, but it means that for now it remains on the tokyo stock exchange. markets in europe have been trading for 45 minutes, and they are all headed lower, following the same mood in asia today, and the night before on wall street, real concern, as we have mentioned, with what is happening with regards to north korea and the united states,

something that is very relevant for our next conversation. here's a question — does getting inside the mind of a potential radical extremist and persuading someone to buy a brand of washing powder require the same set of skills? sven hughes believes it does. he's a former uk army military intelligence reservist and specialist in so called psyops. i thought that was a typo! he's now runs marketing agencies global influence and verbalisation. using counterinsurgency skills to sell products, he has built up a client list that ranges from the ft to the baby product firm tommee tippee. sven hughesjoins us now. nice to see you. we sort of hashtag away through that interview, trying to explain what you do, maybe you can do it better! it is a really fascinating area, trying to explain people to do things by talking to them ina

people to do things by talking to them in a language they understand ultimately, but there are clever ways you can do that. essentially, there is a science of behaviour change, and using language to affect behaviour change, so really what my companies do is better and stand the target audience, using scientific techniques, to then verbally engineer language to increase empathy, really, between the audience and the product and message they are trying to bring to the audience. and language has become more important, hasn't it? especially through social media, more so than perhaps images. not least here we are sitting in a bbc studio, the 24 hour news cycle gets people, obviously, hooked on hearing more information, talking about more information. the difference between being informed and being well—informed is fundamentally important, and that is why we work with commercial brands such as the times, who believe very firmly in a

difference between informed and well—informed. difference between informed and well-informed. you started the company six years ago, you described to me earlier that you had an epiphany ina to me earlier that you had an epiphany in a trench — explain. to me earlier that you had an epiphany in a trench - explain. yes, in afghanistan, we were having to power down at the bottom of a trench because of a situation going on around us, and as we were talking at the bottom of the trench, a group of soldiers and myself, we saw a little blue triangle on the floor, and it was only later that we worked out that they were arrowheads from alexander the great. fundamentally, we hadn't progressed in afghanistan. a thousand years by using those techniques. that was sort of the moment when i thought we needed to create a business to help us with dialogue over division. explain what you have done with dialogue over division in terms of work with young people, trying to prevent them from signing up to organisations like so—called islamic state. signing up to organisations like so-called islamic state. one area of

the company, of the two companies, is focused on helping charities and ngos to intervene when people are being radicalised, to understand the language patterns that so—called islamic state might be using to recruit these people, and then to create interventions, often online, to counteract that process. so, again, understanding the audience, decoding the psychology of the audience, and verbally engineering a more effective way to disrupt the messaging or provide a more dialogue based messaging step. and we might come into contact with this more than we expect, because marketers are using this as well. there is a slight difference, the marketing industry is using a certain kind of insight, a certain kind of insight methodologies that is not linguistically based. what we bring to the market is something pinpoint targeted at language analysis and the use of words more effectively. how big you know, though, that your

method of persuasion are working?“ we ta ke method of persuasion are working?“ we take a commercial client like the times, they saw 200 36 cents increase in their yields... but how do you know that young people are not signing up to islamic state because they watched a video you put together? in that particular instance, with a film we put out, a viral, there was a measure of the impact was the media reach, 500 million media impressions in seven days, but we can also track and trace the conversations that our work influenced online. we have a great deal of kpis to show behaviour change in that instance. some people would call this a dark art, you are trying to convince somebody to do something they are not aware of, and thatis something they are not aware of, and that is all too true of selling stuff. equally, when it comes to politicians, you know, a lot of

political messaging is about persuading us to vote when a certain way, none more so than during the brexit referendum. a lot of criticism of the claims and counterclaims, it is a dark art, isn't it? not at all. first of all, if you have children, if you want, i have got two children, if you want them to go to bed, you have to understand the individual you are talking to. one of my children, let's play a game, race upstairs. the other one is, look, daddy is going to get angry if you don't go. you have to understand the audience to speak more effectively to them. but there is no ulterior motive, but if you are a political party with a particular persuasion, you want people to vote the way you think. the first thing to do is communicate your policy in an effective way. we lived through the area of spain with top—down messaging. we are advocating much more dialogue based, empathy with the target audience, i

think that is a good thing, not a bad thing. i think we will leave at there, apps i could use your skills in my home! i can't get my kids to bed ever! i go to bed before them now! but then i do get up at two in the morning. you have never mentioned that(!) a lot more to come in business live, this is how to stay in touch. 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. particularly about this story about

facebook moving into the television arena, we would get into that in a moment, but maike is back, the story about the new boss of lego going after eight months, tell us more.“ is interesting, because he is the first non—danish chief executive of lego, he has only been in thejob for eight months. they have said this was always the deal, since he was appointed they would start looking for a new chief executive, so there may or may not be more to the story, but what is interesting is that lego is feeling the pressure. it dominates the construction aisle, but their biggest competitor is moving into that space. what do we know about this new guy? so interesting, because the first guy was there just eight months, and then another dane.

it does seem that way, but the new chief executive has got a very good track record. is he good at building?! he is a master builder! is good at increasing profits, which is what you want your chief executive to do. isn't it everybody‘s dream job? we think it probably looks really easy to run. everything is awesome! but to keep up with current trends... by the way, i'm just quoting a song from the lego movie, thatis quoting a song from the lego movie, that is not the bbc opinion of lego! because it is such an iconic brand, there is so much and tapped potential, and in this world of new technologies, there is so much you could do, so you need someone very forward thinking. that moves us nicely onto facebook, we have been asking your views about watching tv through facebook. the journal asking your views about watching tv through facebook. thejournal is

talking about how facebook squashes, edition from start—ups. all well and good them coming up with good ideas, but facebook i'd buys them or copies them. these big tech giants can afford to sweep up the start—ups, and it raises a few questions about the future of the tech sector, so we have those big giants, facebook, google, amazon, with deep pockets, spending cash to buy up smaller companies like snapchat, whatsapp, instagram, to expand. just to say, snapchat‘s earnings are out today, and in terms of your views on facebook, matt says, i'm worried it will be the perfect forum for fake news and alternative facts. alex says, not at all, i want to sit on my sofa, not watch it on a tiny screen. bye—bye. good morning.

iam i am pleased to say that this morning is a much sunnier start than yesterday, some really quite heavy rain in the south—east yesterday, rainfall totals of 40—60 millimetres. the struggles of what you expect to see by the end of august, so a whole month's worth of rainfall in 36 hours. a few showers in the south—east, but elsewhere a ridge of high pressure building in will bring more settled conditions and some sunshine. by four o'clock this afternoon, plenty of dry weather across the south—west of england and wales, perhaps still the odd shower towards sussex and kent, but showers few and far between. for most, much drier, certainly across the midlands, northern england, scotla nd the midlands, northern england, scotland and northern ireland, also enjoying sunshine, temperatures up into the high teens, low 20s.

perhaps more cloud in the north and north—west of scotland, a few spots of drizzle as well, the wind starting to pick up as well. for many of us through this evening and into tonight, clear skies, many of us through this evening and into tonight, clearskies, chilly into tonight, clearskies, chilly into the early hours of friday morning in the countryside, further north you can see more cloud and outbreaks of rain starting to move in. that is all tied in with this next weather system pushing in from the atlantic. quite breezy conditions, strong winds developing around the area of low pressure, especially so towards scotland and northern ireland. largely dry towards the far east of england, but elsewhere a return to cloudy skies and rain spreading gradually south and rain spreading gradually south and east, temperatures about 17—21. those of the weather systems for friday, the good news is, for the weekend, those will clear away, and another ridge of high pressure slowly building up from the south, so as we get to the weekend, it is looking largely dry, sunny spells,

feeling quite pleasant in that sunshine as well. let's have a look at saturday, then, early morning rain as the weather system clears to the south—east, but apart from the shower here and there, almost on saturday a dry day, fairly sunny, and sunday is looking very similar, just the odd shower, but it will not spoil your weekend. temperatures about average for the time of year, but with the august sunshine it is still go to feel quite pleasant. more details online, but that is it from me, bye—bye. good morning. i'm victoria derbyshire. welcome to the programme. "0nly absolute force can work on him" — says north korea as it accuses donald trump of being bereft of reason and claims it's making a plan to fire four rockets at the american territory of guam within days. an attack or threat on guam is an attack on the united states. they

have said america will be defended. we are talking to a family from the pacific island of guam, caught in the middle of this war of words — about how their lives are affected. very serious warnings this morning that homelessness could rise by 70% in a decade. right now around a quarter of a million people are caught in the homeless trap, rough sleeping, in hostels, cars, tents, bus shelters. we look at the picture across the uk — and what can be done about it.