this is the business briefing, i'm sally bundock. apple reveals its best third quarter in history, as its customers go for the more expensive models of the iphone. us secretary of state mike pompeo visits south—east asia after promising $100 million in investments. will this be enough to counter the impact of us trade tariffs? and on the markets: there is so much to digests, reports from apple, rumours the us will double the trade tariffs on china. apple has taken another step towards becoming the first trillion—dollar tech company after it announced its 03 results. the number everyone wanted

to see is this — how many iphones were sold. and, while that number was only 1% higher than a year ago, iphone revenue actually rose 20% as more customers opted for apple's most expensive and profitable phone, the iphone x. overall revenues came in at $53.3 billion, comfortably beating analysts' expectations. now, one interesting figure is apple's services revenue, things like itunes, icloud and apple music. revenue there grow 31% compared to the same quarter 2017. and the markets liked it, too. shares of apple gained more than 3.5% in after—hours trade. nigel vaz, ceo of publicis.sapient international, joins me now. good to see you again. so interestingly, the shares went up. normally apple comes out with fantastic results and the shares go down. tell us why investors were particularly happy this time.” think a couple of things. the first is apple have done a really good job of demonstrating the premium positioning of the iphone x is something they can sustain, so the

cost per phone was pretty incredible. tim cook announced it is the most popular phone in china for the most popular phone in china for the second quarter in a row, not just the most popular but the top three phones are apple, which is a big and important milestone for them given china is the biggest market outside the us. and most importantly the point you made earlier, the shift to services. even excluding this 1—off increase they had, they are still up 28% year—on—year, which means more people are using apple to store their data in the cloud, more people are using apple pay, and things like apple music demonstrating significant growth. things like apple music demonstrating significant growthm it seems there is no stopping this company at the moment. over the yea rs company at the moment. over the years we company at the moment. over the yea rs we have company at the moment. over the years we have had this conversation about how it needs to innovate, to come up with something bigger and better than the iphone. does it?|j

actually think innovation is now not ina actually think innovation is now not in a product, it is amazing they have $9.5 billion in revenue and services and most people are not seeing that as innovation. this was a company which was primarily a hardware company and it has made a significant move towards being a softwa re significant move towards being a software com pa ny, significant move towards being a software company, and a really great softwa re software company, and a really great software com pa ny. software company, and a really great software company. i know lots of people have challenges with apple software, but to consider that we use it to listen to music, to pay, to think about the developments in ai and siri, these are all innovation. so they are joining up all the dots and permeating every aspect of our world, as it were. so what do you see as a dot on the landscape, or something that could cause apple to stumble?” landscape, or something that could cause apple to stumble? i think the big thing for them is going to be to keep this platform of innovation going, continuing to innovate on the hardware while they continue to push the boundaries of our overall

experience. i think this is innovation at scale on the experienced a mention of a kind we haven't experienced. lots of companies talk about the value of the brand and the experience, but apple are showing you can't do a hardware comparison between samsung and apple or another company and apple —— dimension. they are making it hard to compare one of their products to another product. you have to compare the entire apple experience to the entire experience of another company, so this idea that the brand is the experience and the experience is the brand, they are the experience is the brand, they a re really the experience is the brand, they are really proving that. thank you for coming in. we have a lot more on apple on our website, do take a look and dig deeper. us secretary of state mike pompeo kicks off a tour of southe—east asia today, starting first with malaysia. the trip is timed with his announcement on monday that washington plans to invest $113 million in countries all across asia.

but now it's slightly overshadowed by reports of more tariffs on chinese goods. let's go to our asia business hub where shara njit leyl is following the story. good to see you. the trade war is backin good to see you. the trade war is back in the headlines, despite mike pompeo wanting this to be a very positive trip to asia. that's right, sally. that 113 million that you mentioned, critics are saying that amount is really a drop in the ocean compared to the billions that china is spending in the region with its one belt, one road initiative. it points in the right direction, though, showing that america's commitment is to the region, even if the figure doesn't amount to much. it is also one step towards quelling the spheres around china us trade tensions. you have just the spheres around china us trade tensions. you havejust mentioned more rumours today, sources saying president trump is looking to slap

higher tariffs on chinese goods, considering tariffs of up to 25% on $200 billion worth of chinese goods. mrtrump has $200 billion worth of chinese goods. mr trump has also previously threatened to levy about 10% of those chinese imports, including all sorts of things from steel, aluminium consumer goods, dog food, furniture, tyres, et cetera. but with talks at a standstill, sources say this move will pressure china to return to the negotiating table. thank you very much indeed. india's central bank will be announcing its latest monetary policy decision today. injune, the bank had raised its key lending rate by 0.25%, the first hike in more than four years. so what could it do today? the bbc‘s yogita limaye reports from mumbai. are prices of vegetables, fruit, food grain and fuel rising rapidly? in short, is inflation growing at a fast pace? well, that is one of the main things the central bank considers

when making its monetary policy decision, and it has got a mixed bag of numbers to look at this time. the latest government data we have is for the month ofjune, which came out in latejuly. it showed that consumer price inflation had risen to 5%, the highest in five months. but it is the details that are more interesting. it showed that food prices are not soaring, although the cost of fuel was. that was expected, because over the month ofjune we saw global oil prices were rising. that has a huge impact in india, because they import more than 80% of that oil it needs. let's look at that now. global oil prices have come down a little, which means fuel prices are also easing a little. that is why economists are split down the middle about what the central bank will do. will they raise rates,

because inflation rose, or will they wait a couple of months to see the trajectory of global prices before making that call? what most economistss do agree on, however, is that there will be a rate hike before the end of the year, and for consumers, it means cars and home loans could be more expensive, and for businesses it will be more expensive to borrow money. and the us federal reserve will announce its decision today as well. now let's brief you on some other business stories: facebook says it has removed 32 accounts and pages believed to have been set up to influence the midterm us elections in november. it said it was in the very early stages of the investigation and did not yet know who was behind the pages. jaguar land rover has reported a loss for the first time in three years, after sales slowed in china. the uk's biggest carfirm, which is owned by india's tata motors, blamed the setback on a change in chinese import duties. china plans to cut import tariffs for cars and parts from ijuly, and as a result many consumers delayed purchases, jlr said. british prime minister theresa may

is on holiday in europe, but on friday she will be the guest of french president emmanuel macron, as she races to secure support for a deal on her country's exit from the european union. the two leaders will hold a working meeting and private dinner at the presidential retreat at bregancon, where macron and his wife brigitte will be spending their summer holidays. that's it for the business briefing this hour, but before we go, here are the markets. there is a lot going on. we have lots of earnings stories. we mentioned apple, we saw recovery in stocks on the dow and the nasdaq but in asia it is fairly mixed. you can see the hang seng down slightly, japan higher. investors digests inc the rumours of possible escalation

in the trade war —— digesting. up next: newsbriefing. there are 11,000 more grammar school pupils in england now than there were in 2010. that is despite a 20—year ban on creating new grammar schools, and the figures from a bbc analysis of official data show the number of places are expected to increase further in the coming years. our education editor branwen jeffries has more. like many grammar schools, it has a long history. it also wants a bigger future. it is among more than 30 selective schools bidding to expand.

the deadline to ask for cash to build as tomorrow. there is a condition for the selective schools that they had to come forward with a plan of how they are going to widen their access and make sure that, you know, more children from more disadvantaged backgrounds are going to be able to access it. but grammar school expansion has already been happening. there are 11,000 more grammar school pupils than in 2010. i 2020 one that means the equivalent of 2a extra grammar schools, and thatisif of 2a extra grammar schools, and that is if intake stays the same. 93 out of 163 that is if intake stays the same. 93 out of163 grammar that is if intake stays the same. 93 out of 163 grammar schools give some priority to poorer pupils, but some still fear the effect of expansion. essentially what you're doing is your creaming off the top students in that area, and obviously the consequence of that for other schools will be that their average achievement level will go down, both in terms of the students entering

those schools, will have lower test scores, but also potentially on the progress they make. because you are removing some of that high achieving peer group. grammar schools are popular with some parents, but remain controversial, with those against selecting at age 11. more detail on that story on the bbc news app, as well as other stories including a story about the labour leader apologising for appearing on platforms with people's views rejected. this is the briefing from bbc news. the latest headlines: the homeland security secretary in the us has welcomed facebook‘s closure of what the company says are at least 30 fake accounts apparently aimed at influencing the midterm elections in november. a passengerjet has crashed shortly after takeoff in a heavy hailstorm in northern mexico. 85 people have been injured, but many passengers managed to walk from the wreckage to a nearby road seeking help. a ban on wearing muslim face veils

in public comes into force today in denmark. police will be able to impose fines of $160 for a first offence. now it's time to look at the stories that are making the headlines in the media across the world. we begin with the new york times, and it has the details of facebook‘s announcement that it's discovered fake profiles that appear to have been set up to influence the midterm elections in the us. here in the uk, the independent covers liberal democrats leader vince cable saying his campaign for a second brexit referendum has now gained an unstoppable momentum. time magazine's website has the latest on the 3d printed guns controversy in the us. it says a federaljudge has blocked the planned release of software

to make them. as sick days among brits falls to an all—time low, the sun has this story, which warns workers not to battle into the office when unwell. that is the question it is asking. and the telegraph among many picking up on madonna's latest appearance — the cover star for vogue in which she talks about her latest reinvention at the age of 60. back with me is oliver cornock, editor—in—chief of the oxford business group. let's get stuck in. what is the new york times saying about facebook‘s announcement of these fake accounts? it's simply saying these accounts have been identified, they've been closed, but of course this is against the background of the current trial with paul manna for

going on in the us. manafort. this comes around mid terms, the so—called bad actors social media.