dented by price cuts. tesla reports a drop in puppet after aggressively slashing prices to sell more vehicles. we will have the latest. plus looking to china from down under. canberra and beijing could be talking trade again as diplomatic frictions show signs of easing. welcome to asia business report with me, mariko oi. shares in tesla are falling in after hours trading after quarterly

results missed market expectations. delayed results, a missed market expectations. tesla's income and earnings fell by more than 20% in this past quarter compared to the same time last year. it is a big number, but not totally unexpected because the company has been slashing prices of its top selling vehicles over the past year. samira hussain has more from new york. bringing in 20% less income is, well, not good. what helps the electric car maker, however, is that it warned wall street this was coming, so it didn't come as a complete surprise given tesla cut prices on its top selling cars several times last year and in fact did it again this week. now, tesla is grappling with higher borrowing costs for consumers, slowing demand for their cars and so much more competition in the electric car market. so the price cuts did the trick. the company saw a 36% jump in deliveries, but the price cuts also mean that the profit margins on each card sold have gotten smaller.

let's stay with the car sector because jaguar land rover is investing some $19 billion to ramp up its ev production. the investment will be made over the course of five years and the plan includes turning the halewood plant in the uk into an all—electric manufacturing facility. the british luxury car—maker is also planning for a new all—electric range rover that will be due in 2025. jaguar land rover is owned by india's tata motors. now, major chip maker asml has reported its first—quarter earnings and posted a three three—fold jump in net profit and beating analysts expectations. taiwan's tsmc is also due to report its quarterly earnings later today, and we'll be watching to see if there are any signs of recovery there after enjoying a boom during the covid—19 lockdown period. semiconductor companies warned of a gloomier outlook

late last year. but as our asia business correspondent nick marsh explains, that that's just the cyclical nature of this industry. chips are the new oil. it's the kind of thing we've been hearing for a while now. but amid all the talk, you might have missed the fact that the sector's actually in the middle of a slump right now. it has been for some time. let me explain why. a couple of years ago, it was boom time for the semiconductor industry. covid created supply chain problems and therefore semiconductor shortages that sent customers scrambling to stock up even when the prices were high. plus, with people spending so much more time at home, the demand for electronics shot up. now, that's all good news for the industry. but then the pandemic ended and customers were all stocked up. in fact, they had too much. then you add into the mix the war in ukraine, inflation, high interest rates, and demand for semiconductors plummeted. but when the chips are down,

this industry always manages to bounce back. in fact, that's kind of the way the whole thing works. the cycle, the life cycle of the product could be, say, i don't know, two years for an iphone, five years for an electric vehicle. so they are very dependent on the cycle, where you are in the cycles. and, true enough, most analysts are forecasting a rebound sometime this year. but long term, this is an industry that is in flux. first, semiconductor manufacturing is being lured from here in asia to north america. but that's going to take years and it's going to cost billions. secondly, there is a deeper threat, and it's to do with the very way that we consume. it's because the whole idea is people don't need to change their iphone every two years.

why would i? or people don't need a car, new type of car. and that is a structural trend, society, societal change that i think this industry is very worried about. semiconductors could well become a trillion—dollar industry by 2030, but what that sector will look like then compared to now, well, that is a different question. there will be a rebound, but the rebound might not be what people have in mind. 2020, you know, i don't think it'll be 2020 and some companies might not even make it to the rebound. so we've just heard about how factors like inflation have slowed demand for electronics and the chips that power them. chris miller is an associate professor at tufts university and the author of chip war, and he told me the industry seems to be recovering, but there are still risk factors. well, i think the industry is looking somewhat better compared to late last year, but there are risks on the horizon. and in particular, if any major economies slip into recession

later this year or early next year, that will drag down demand for pcs, for smartphones and for investment in data centres, all of which are key users of chips. so right now, the biggest uncertainty hanging over the industry is the global macroeconomic outlook. trade tensions between the us and china. chips seem to be the hot commodity here and of course we had netherlands and japan also imposing restrictions similar to that of the us on chip exports. how much will these restrictions have an impact on china's production of chips? well, the restrictions only impact production that's close to the cutting edge. so for chinese facilities that are impacting that are producing low end chips, these restrictions won't have much of an impact at all. but for the smaller number of chinese firms that do produce cutting edge chips, these restrictions will be quite difficult to find ways to work around, and chinese firms will spend the next several years struggling to find alternative ways of producing.

without this advanced equipment, chips. chips and ai, which is really hot at the moment. they have very close ties, don't they? so will this gap between what china wants to produce but can't produce delay its ai ambitions, in your view? well, there's a real chance of that right now. there's certainly a shortage of many types of the chips that are used to train ai systems given the boom in generative ai, and thatjust shows how critical advanced chips are to training complex artificial intelligence systems. and if china can't get access to these chips, it will struggle to train the most advanced ai systems. in other news, meta, the owner of facebook, is embarking on another round of lay—offs and has started notifying staff who are losing theirjobs. the latest round of cuts was first announced in march and could affect some 10,000 jobs, and that's even after the company let go about 11,000 people last year, or about 13% of its staff. now, western australia's premier mark mcgowan

is in china this week and trade ties are expected to be part of the agenda. the premier will likely try to persuade china to lift curbs on australian products, which stemmed from political tensions over human rights issues and different views on the origins of covid—19, to name a few. that's led to many australian companies looking at other markets for growth. phil mercer has more. it's been a bumper season for winemakers in the hunter valley. the weather has been kind and the harvest has gone well. but in recent years, china's restrictions on australian wine have hurt the multimillion—dollar export industry. it's undoubtedly been a challenge for the last few years since china has put up their barriers, losing our largest export market from a national point of view. it's nigh on impossible to replace quickly, so that's undoubtedly made it challenging for producers that maybe don't have an alternate home

or route to market. china accounts for more than a quarter of australia's international trade. many businesses, including wine makers here in the new south wales hunter valley, have had to look for opportunities elsewhere. the prime minister anthony albanese says australia must build up commercial links with other countries, including indonesia and india. certainly those large enterprises have suffered, but it's the small, medium sized enterprises who are potentially suffering the greatest. but diplomatic tensions between canberra and beijing appear to be easing after recent high profile meetings of senior government officials. trading relations could soon improve. countries like china, as a result of covid and the various shutdowns that we've all gone through,

have realised how important it is to nurture and support relations with other countries that there are win win outcomes when we're able to do that. chinese students are returning to australia in large numbers. businesses in sydney that were forced to cut back during the long months of the pandemic are now making cuts of a different kind. in the chinatown area, i would say about 80% of our customers there are international chinese students, so it is really important for us. so i'm glad that now the border has opened and governments are welcoming the students back. so it's a great help for us. australia's trade with china is worth more than the combined value of its business dealings with japan, the united states and korea. while diversifying into other markets makes economic and political sense. government projections show that australia's reliance on china will continue to grow. phil mercer, bbc news in the hunter valley.

and that's it for this program. i'll be back next hour so dojoin us if you can. but for now, thank you so much for watching. there are seaside puffins, city puffins, and even 1 or 2 of them nestled away in towns and villages. but now, puffins galore. east yorkshire's puffin trail is coming to an end. we've had everything from people who've come from all over the country and people who've come back 2 or 3 times. we've had a guy who did the whole thing on a bicycle in one day, and we've had people who live locally who are saying that they've ended up going to places and finding things that they never knew were there. 42 puffin statues were decorated by artists before going on display last may, with designs representing the importance of protecting

wildlife and local stories, including this one of amyjohnson. i've actually placed her centrestage, and a moth, a puss moth in her heart space because the plane she was flying was a puss moth. like their real life inspiration at bempton cliffs. they were hit with puffin spotters and selfie takers. i like to puffins because they were so colourful. i think it's been nice for the area. ijust think it's brightened it up a bit. something for the children as well. a bit addictive, i have to say. next month there's a chance to see them all together in a warehouse in bridlington before the whole colony migrates. hey, i'mjack with the catch up. tonight, a wild escape. 0vernight steak bakes. and one of your favorite shows returns. first up, pretty little thing

has been under the spotlight for outfits offered to muslim shoppers celebrating the end of ramadan. some people have been criticising outfits such as these as inappropriate. plt says it didn't mean to cause offense. some other stories for you now. and police are looking into online racist abuse against bukayo sa ka. the england and arsenal forward was allegedly targeted after arsenal's 2—2— draw with west ham the other day after he missed a crucial penalty. former arsenal striker ian wright has voiced his support for saka and urged others to do the same. now, you might remember plans to be able to pick up a pasty after midnight at greggs in leicester square were scuppered last year. the chain faced backlash from the met police and local council over safety concerns. but now the baker is trying to overturn that failed application, saying itjust wants to follow suit with other businesses in the area. talks are ongoing. and it's back. waterloo road returns to

iplayer and bbc one next month. you're going to get seven brand new episodes and loads of familiar faces are back, including this guy. you might recognize him. jamie glover, who returns as andrew treneman. he hasn't been in the show since 2009. finally, i'm going to leave you with 10 seconds of escape and not the relaxing kind of escape you're thinking of. picture yourself mid—show at the circus when this happens. these two lions broke out the enclosure, made a run for it in this big top in china. no humans or animals were hurt. goes to show, the circus is always intense.

hello, i'm paul scott at the bbc sport centre. here's what's coming up on the programme: manchester city see off bayern munich in the champions league — next up a mouthwatering clash against real madrid in semi—finals. the other semi is an all—italian affair as inter milan beat benfica, to set up a milan derby in the last four. and a maximum 147 break for kyren wilson. he's only the ninth player in history to achieve it at the crucible — and it could earn him nearly $70,000.