:00:07. > :00:17.This is business life. Driving with no hands, steering wheel, pedals, an
:00:18. > :00:20.ambitious plan to have self driving cars on the road in five years. That
:00:21. > :00:44.is scary. Oh yeah, the big boss of Ford tells
:00:45. > :00:54.us the BBC the future of automobiles is driverless. Also on the
:00:55. > :00:56.programme, Cathay Pacific, Hong Kong's national carrier bets against
:00:57. > :01:04.the drop in oil and gets wrong, loses big time. Its profits plunge
:01:05. > :01:05.82%. And we will take a look at the markets, its August, give us a
:01:06. > :01:18.break. And staying with aviation -
:01:19. > :01:21.Latin America's biggest carrier has had a bumpy ride in Brazil we ask
:01:22. > :01:24.the Chief Executive if the Rio Olympics will give
:01:25. > :01:26.the company a boost? And later on we'll look at how
:01:27. > :01:29.savers and banks are hoarding cash because interest rates are so low -
:01:30. > :01:32.are you tempted to put your money What are you doing with your cash
:01:33. > :01:37.now that rates are at all time Comments already coming in, and we
:01:38. > :01:52.appreciate them. US car maker Ford has promised it
:01:53. > :01:57.will have a mass-produced self-driving car on the road by 2021
:01:58. > :02:00.- one that won't even Google has been leading this
:02:01. > :02:10.particular technological revolution - and has been road testing cars
:02:11. > :02:17.in the United States for years. Tesla is of course
:02:18. > :02:22.another key player - but its self-driving project has had
:02:23. > :02:24.some road blocks. The project has come under scrutiny
:02:25. > :02:27.after a driver was killed in a driver-assisted
:02:28. > :02:31.vehicle earlier this year. But Ford is joining the race
:02:32. > :02:36.and has put it's money where its mouth is -
:02:37. > :02:39.investing $75 million in a sensor Tesla's Elon Musk doesn't believe
:02:40. > :02:50.it's the future of driverless cars. Our North America technology
:02:51. > :02:55.reporter Dave Lee spoke to Ford's president and asked him
:02:56. > :03:13.if LiDAR is a gamble. I cannot speak to what is going on
:03:14. > :03:19.in Elon Musk's head, but we believe cloud is very important. One of the
:03:20. > :03:22.goals is that eventually there will not be drivers. What about those
:03:23. > :03:28.millions of people that make their living from driving taxis, driving
:03:29. > :03:34.trucks. Clearly, as you think about the societal benefits around fully
:03:35. > :03:39.autonomous vehicles, benefits around safety, mobility for elderly or
:03:40. > :03:42.disabled folks, benefits for the environment because there is less
:03:43. > :03:47.congestion, clearly those are really huge benefits. At the same time a
:03:48. > :03:52.lot of economies including the US are very resilient. As we see
:03:53. > :03:56.situations like this, the economies situations like this, the economies
:03:57. > :03:59.will be resilient and there will be new sources of opportunity for
:04:00. > :04:00.people to work, whether in the automotive industry as drivers or
:04:01. > :04:10.not. head of autos analysis
:04:11. > :04:22.at BMI Research. What do you make of this? It is
:04:23. > :04:28.certainly a statement of intent, putting a timeline on it. From their
:04:29. > :04:32.side that they have control over, the technology is certainly
:04:33. > :04:34.possible. Many car-makers already have this underdevelopment, they
:04:35. > :04:40.have been working on it for a few years. I think it's other issues
:04:41. > :04:44.that might derail this. Things like connectivity, having the right level
:04:45. > :04:48.of connectivity in cities where you want these cars to work. Consumer
:04:49. > :04:57.perception, do people actually want them? Will they want to give up
:04:58. > :05:00.control of driving? Can I just ask, surely the regulation of this in
:05:01. > :05:08.five years is going to be one of the largest hurdles, jumps. And the
:05:09. > :05:11.insurance, right? You've got to have the regulation to have the insurer
:05:12. > :05:17.because one of them crashes into a car, who is it for? This is the big
:05:18. > :05:21.question. Absolutely, this is something we have highlighted as a
:05:22. > :05:25.biggest hurdle. And that's why we think it could be ten to 15 years
:05:26. > :05:29.before you see them in operation fully. All of the regulation and
:05:30. > :05:32.insurance regulation we have is all around the fact you have a driving
:05:33. > :05:37.charge of the car. You take that away, who's at fault? The car-maker,
:05:38. > :05:42.the software provider? There are still many questions to be answered.
:05:43. > :05:47.In the meantime Ford and many rivals are just ploughing plenty of money
:05:48. > :05:53.into this technology. Just tell us about the rivals. We know about
:05:54. > :05:58.Google, we know about Tesla, but many others are in the frame. Yes,
:05:59. > :06:06.and a lot at the premium end. BMW, Mercedes. They are concentrating on
:06:07. > :06:16.the premium eventual ride sharing. What about Apple? A lot of talk
:06:17. > :06:22.about them, they are heavily predicted to be making a car. I
:06:23. > :06:26.think it's highly likely they will be in there as well. I was wondering
:06:27. > :06:31.about, we said in the introduction they were putting their money where
:06:32. > :06:35.their mouth is, but $75 million in the grand scheme of things doesn't
:06:36. > :06:44.sound like a lot. Hang on, we have been corrected. $175 million, that
:06:45. > :06:51.sounds a bit better. Elon Musk's against it, isn't he, saying the
:06:52. > :06:54.technology was expensive? I think the aim of Ford is to get involved
:06:55. > :06:59.in the development and build up economies of scale so that it can be
:07:00. > :07:01.made more cost effective, particularly because they're looking
:07:02. > :07:05.and the mass-market end of this, that's obviously very important for
:07:06. > :07:11.them, to be more affordable for a big fleet. That's their thinking
:07:12. > :07:14.behind this. I know LiDAR is generally looked on to be better for
:07:15. > :07:22.3-D mapping which is vital for, make. Extremely vital. You'd be in
:07:23. > :07:26.the wrong place at the wrong time with the wrong person. Or no person.
:07:27. > :07:28.Thanks for coming in, we appreciate it. Much more to squeeze in, go for
:07:29. > :07:31.it. A former head of Goldman Sach's
:07:32. > :07:33.mortgage trading unit has been barred from the industry
:07:34. > :07:37.by US regulators. Edward Chin, former head
:07:38. > :07:40.of residential mortgage-backed securities, was accused by the US
:07:41. > :07:44.Securities and Exchange Commission of misleading customers, causing
:07:45. > :07:47.them to pay more. In addition to the ban,
:07:48. > :07:53.he has agreed to pay $400,000. China's state council has approved
:07:54. > :07:58.a new link between its tech heavy Shenzhen and Hong Kong stock
:07:59. > :08:01.exchanges in a move to open Under the initiative limits
:08:02. > :08:05.on how much foreigners can invest in Chinese
:08:06. > :08:07.stocks will be scrapped. But there will be a daily cap
:08:08. > :08:10.of $2 billion dollars on the amount Online news site Gawker Media has
:08:11. > :08:14.been sold to media firm Univision The firm outbid media rival
:08:15. > :08:18.Ziff Davis to seal the deal, which still hinges on approval
:08:19. > :08:24.from a bankruptcy judge. The sale comes after Gawker filed
:08:25. > :08:28.for bankruptcy protection in June to avoid paying damages after it
:08:29. > :08:34.lost a $140m invasion of privacy lawsuit bought by former
:08:35. > :08:41.wrestler Hulk Hogan. Now, Hong Kong's national carrier -
:08:42. > :08:44.Cathay Pacific- has taken an almighty hit to its profits.Net
:08:45. > :08:46.profit for the first half of the year fell 82.% compared
:08:47. > :08:49.to the same period last year, Karishma Vaswani is
:08:50. > :09:11.in Singapore for us. At a time when oil prices are low, I
:09:12. > :09:17.think this story has something to do with oil, it bet against oil prices
:09:18. > :09:23.and lost that bed, basically? You are absolutely right. They bet that
:09:24. > :09:27.oil prices, to protect itself from the volatility it is seeing in oil
:09:28. > :09:31.prices, it bet that it would be higher than it currently is. It's a
:09:32. > :09:38.bet that many airlines make on occasion. Cathe is said to be more
:09:39. > :09:45.conservative than most, and that is what you are seeing reflected in the
:09:46. > :09:50.earnings being released. It's a staggering figure. If you compared
:09:51. > :09:54.to how regional airlines are doing, Cathay really isn't doing very well.
:09:55. > :10:03.Now, the big of a problem of course for this airline at at one point was
:10:04. > :10:06.all one of Asia's finest is that the main market it has been serving,
:10:07. > :10:10.China, has been seeing a slowdown. That's not all, it's also because of
:10:11. > :10:13.competition. Chinese carriers are now becoming far more competitive
:10:14. > :10:18.and becoming very good passengers from the mainland to international
:10:19. > :10:23.destinations. People don't necessarily need to go through Hong
:10:24. > :10:26.Kong any more. And that's really starting to hurt Cathay's
:10:27. > :10:31.bottom-line. I guess you'd call it as a hub, an important hub, if
:10:32. > :10:33.passengers don't need to go through it, they are in trouble. Great stuff
:10:34. > :10:41.as always, see you soon. Just a quick flash of the markets -
:10:42. > :10:44.because it's very The Asian markets pulled back a bit
:10:45. > :10:48.from their one year high. The price of a barrel
:10:49. > :10:50.of oil dropped a bit. The pullback also
:10:51. > :11:02.happening in Europe. But the best market comment has
:11:03. > :11:06.to come from one of the men who vote on whether to raise
:11:07. > :11:08.or lower US interest rates. Yesterday he hinted that the cost
:11:09. > :11:11.of borrowing in the world's biggest Today we get the US FED minutes
:11:12. > :11:21.from their last meeting and should give us a clue as to what's
:11:22. > :11:24.going on in the heads And talking of the US -
:11:25. > :11:28.let's find out what'll be making the biz headlines on that
:11:29. > :11:34.side of the Atlantic. On Wednesday we'll get a closer look
:11:35. > :11:37.into the thinking of the Federal reserve policymakers when the
:11:38. > :11:42.minutes of their July meeting are published. Now, the US central bank
:11:43. > :11:47.said at its last meeting that the economy stands on a better footing.
:11:48. > :11:54.Economists will be scouring the notes, looking for true hints on how
:11:55. > :11:58.likely an interest rate will be. In other business News a few companies
:11:59. > :12:05.reporting earnings including network equipment maker Cisco. Now, Cisco
:12:06. > :12:08.has been beefing up its wireless, security and data centre businesses
:12:09. > :12:12.to really offset the impact of sluggish spending by telecom
:12:13. > :12:19.carriers and enterprises on its main business of making network switches.
:12:20. > :12:27.Also reporting, retail giant target and office supplies retailer
:12:28. > :12:31.Staples. Pretty busy day shaping up on Wall Street. The business editor
:12:32. > :12:36.from Telegraph media group is with us, good morning James. We are
:12:37. > :12:43.seeing who is not on holiday, they are on business life. Talking about
:12:44. > :12:46.the Fed, we get the minutes later, could be quite interesting, couple
:12:47. > :12:50.of those on the policy-making team, as it were, making hints, saying get
:12:51. > :12:57.ready for rates going up again in the states. Yes, basically said
:12:58. > :13:02.growth is it's a rating, the boss of the New York Fed coming out
:13:03. > :13:12.yesterday and saying called your horses, a rate cut will not happen.
:13:13. > :13:15.A lot of money has been on a rate hike. But some of the money now
:13:16. > :13:20.moving to thinking about the December rate. He is an important
:13:21. > :13:26.chat, he's a permanent voter, one of the people who sit around this big
:13:27. > :13:29.table and vote whether up or down. And we got more indication later
:13:30. > :13:39.with the minutes coming out tonight at about 70 GMT. The business life
:13:40. > :13:43.page is consumed with UK data. Unemployment data coming out today,
:13:44. > :13:49.consumer sentiment data tomorrow. Some survey today saying we are at a
:13:50. > :13:51.two-year low. Just talk us through what's happening and what we are
:13:52. > :13:56.learning this week. Basically everybody is grasping, trying to
:13:57. > :14:01.find out in the post-Brexit vote environment how the UK economy is
:14:02. > :14:06.doing. Inflation data yesterday showed inflation increasing up at
:14:07. > :14:12.1.9%. Quite a bit. Employment data out later is for June, we are
:14:13. > :14:17.expecting that at 9:30am. We are expecting unemployment down a 4.9%.
:14:18. > :14:21.But that is just the June, only takes in seven days after the Brexit
:14:22. > :14:33.vote. So still a bit early to tell. Going to be very hard to compare
:14:34. > :14:40.anyway. Exactly. Very seasonal. We'll see you again later. Still to
:14:41. > :14:46.come, it could be hard times for Brazil's airline has the countries
:14:47. > :14:49.economy installing, seats are left empty. We'll be talking to the boss
:14:50. > :14:59.about how she plans to turn around the company 's fortunes.
:15:00. > :15:01.Banks and accountancy firms that help their clients bend the rules
:15:02. > :15:04.to unlawfully avoid tax could face huge fines under new proposals
:15:05. > :15:07.Ministers have published plans which would give courts
:15:08. > :15:11.the power to impose fines of up to 100 percent of the tax avoided -
:15:12. > :15:20.Andrew Walker is in our Business Newsroom.
:15:21. > :15:28.How big a step is this? Up till now it is the individual who would get
:15:29. > :15:34.into trouble, but never the accountants. It is very striking, it
:15:35. > :15:40.has been welcomed by a lot of tax campaigners, that the position now
:15:41. > :15:45.is basically, if you take advantage of a tax avoidance scheme that is
:15:46. > :15:50.subsequently found to be unlawful, you get landed with the financial
:15:51. > :15:55.consequences. Hitherto there has been no real disincentive for
:15:56. > :15:58.accountants and lawyers to offer these schemes, it will be required
:15:59. > :16:02.to has to deal with the consequences. So it is potentially a
:16:03. > :16:07.major change in approach and other way in which government deals with
:16:08. > :16:11.the problem of tax avoidance, and we're talking about billions of
:16:12. > :16:18.pounds a year lost with these type of schemes. The hope is that the
:16:19. > :16:23.prospect of facing these penalties potentially covering a large number
:16:24. > :16:29.of clients, may help to choke off the supply of these schemes in the
:16:30. > :16:35.first place. Briefly, it has not been announced yet but when we
:16:36. > :16:40.expected to come from the Treasury, with a new government led by Theresa
:16:41. > :16:45.May? These are consultation proposals, but it is striking,
:16:46. > :16:50.Theresa May has said that paying your tax as a company is part of the
:16:51. > :16:55.price, the benefits you get from living in a free, nor for society.
:16:56. > :17:03.Thank you. We will see you again soon. Balfour Beatty, managing to
:17:04. > :17:12.narrow its losses, pre-tax losses coming in at ?21 million, a lot
:17:13. > :17:18.better than the previous year, ?150 million in losses. Its order book is
:17:19. > :17:25.looking strong as well. Nearly 12.5 million. What about the story with
:17:26. > :17:28.the job cuts? Unemployment data we're getting out later but also
:17:29. > :17:42.Cisco. Our top story, forward, the motor
:17:43. > :17:48.car announces ambitious plans to have a driverless car on the road in
:17:49. > :17:51.just five years. So no steering wheels, no pedal, no driver! Let's
:17:52. > :18:06.have a look at the markets. One of the comments from the US Fed,
:18:07. > :18:09.one of the voting members who decide whether rates go up or down in the
:18:10. > :18:14.world's biggest economy said, there could be a rate rise, be prepared.
:18:15. > :18:16.Our next guest has one of the toughest jobs
:18:17. > :18:19.in Latin America right now - keeping South America's
:18:20. > :18:22.LATAM is the fusion of two giant companies: Brazil's TAM airlines
:18:23. > :18:25.and Chile's LAN and it started operating flights under a joint
:18:26. > :18:28.It operates flights to 140 destinations in 29 countries -
:18:29. > :18:36.But it has not been an easy start for the joint venture.
:18:37. > :18:40.Brazil's recession has hit the airline sector hard,
:18:41. > :18:44.with a 6% contraction in the number of passengers this year.
:18:45. > :18:47.Chief Executive Claudia Sender took over the helm of the company
:18:48. > :18:54.A chemical engineer with an MBA from Harvard and is one of very few
:18:55. > :18:58.women leading a major company in Latin America.
:18:59. > :19:01.The BBC's Daniel Gallas spoke to her at the Latam's Sao Paulo
:19:02. > :19:10.headquarters and asked her if sponsoring Rio was a wise move.
:19:11. > :19:16.I am absolutely convinced it was the right decision, the go-ahead to toe
:19:17. > :19:22.into the Olympic Games in Brazil. First because Brazil is the largest
:19:23. > :19:25.market for LATAM airlines group, and it's a way in which we reinforce our
:19:26. > :19:30.commitment to Brazil and our presence here. It was also an
:19:31. > :19:37.important moment for the launch of our new brand. Until the beginning
:19:38. > :19:41.of the Olympic process we were still LAN and TAM and our first LATAM
:19:42. > :19:46.flight was the one which brought the Olympic flame from Geneva to Brazil,
:19:47. > :19:51.so it was a beautiful way of marking the introduction of our new brand.
:19:52. > :19:54.Since then we have been recognised as the second most remembered brand
:19:55. > :20:00.attached to the Olympic Games service has been very good in terms
:20:01. > :20:04.of brand recognition. The travel arm of your company offered big
:20:05. > :20:07.discounts to tourists in the run-up to the Games, has the number of
:20:08. > :20:12.tourists been disappointing in these Olympics? Before the Games started
:20:13. > :20:17.there was a lot of concern, whether the Brazilians would be able to pull
:20:18. > :20:22.this out or not and since the opening ceremony, I think people
:20:23. > :20:27.were very impressed by the capacity of Brazilians to do the
:20:28. > :20:30.extraordinary. So as a country, we always surprised when the time comes
:20:31. > :20:36.to deliver the extraordinary, the same thing happened during the World
:20:37. > :20:42.Cup, we are now seeing history being repeated during the Olympic Games.
:20:43. > :20:46.So we have seen more and more people getting excited about coming and we
:20:47. > :20:52.have seen Brazilians showing their best and not their worst. So all the
:20:53. > :20:59.concerns about the car, violins, the logistics and whether the Games
:21:00. > :21:02.would work or not, I think they have diminished significantly. --
:21:03. > :21:09.violence. I think this has increased the traffic. Latin America saw a
:21:10. > :21:12.boom in the number of passengers flying in the last decade but now
:21:13. > :21:19.it's going to a very severe recession, what happened to that
:21:20. > :21:22.room? The consumption class really grew in Brazil and people who before
:21:23. > :21:28.could only afford travelling by bus were all of a sudden able to afford
:21:29. > :21:35.travelling by plane, this is how the market tripled in only ten years. It
:21:36. > :21:40.made Brazil the third largest airline market in the world. What we
:21:41. > :21:43.have seen in the past two years is as the recession hit our economy and
:21:44. > :21:48.people became more cautious in how they spend their money, the leisure
:21:49. > :21:55.clients are thinking twice before taking another vacation or flying.
:21:56. > :22:00.But more than anything, the corporate clients, who makes the
:22:01. > :22:05.bulk of our demand and sales, got a lot more cautious, we have seen
:22:06. > :22:12.significant reductions in trouble. We do expect that to pick up after
:22:13. > :22:16.Brazil retakes its growth and start growing its economy again. This
:22:17. > :22:23.should happen in the next year or two, and with believe Brazil can
:22:24. > :22:32.start to retake growth, maybe not at the seven speed as before. I wonder
:22:33. > :22:41.if she has ever heard of the joke, how do you become a millionaire
:22:42. > :22:45.running an airline? Let's go, quickly! James is back. The
:22:46. > :22:51.Financial Times has a story which we asked you to comment on. Thanks look
:22:52. > :22:56.for cheap ways to store cash piles as rates go negative, where are they
:22:57. > :23:02.putting the cash? They are looking at putting it in storage. In belts.
:23:03. > :23:08.Rather than, the whole purpose of lowering rates, the irony really is
:23:09. > :23:12.to get them to lend money, distillate economy but instead a lot
:23:13. > :23:18.of banks are looking at storing it under the ground in secret faults.
:23:19. > :23:28.How much can you store under a double bed? $106 million,
:23:29. > :23:36.apparently. A suitcase can hold $2.5 million! It's also harder because
:23:37. > :23:49.from later in the year, your notes are going out of circulation -- 500
:23:50. > :23:53.euros notes. Hayley says she's keeping her money in the highest
:23:54. > :24:00.paying bank account from now but looking at shares, gold, biotech,
:24:01. > :24:05.solar companies. My favourite tweet is this person, no name, I have got
:24:06. > :24:16.a grand, in a shortbread tin, shortbread eaten! Another one says,
:24:17. > :24:19.regular savings account for highest monthly payments. Another says if I
:24:20. > :24:25.had any money I would look for options. Sorry to hear that. Let's
:24:26. > :24:31.talk about this story, which is interesting. The shins and stuck
:24:32. > :24:38.index licking up with Hong Kong exchange, and opening up more
:24:39. > :24:43.opportunities -- linking up. The latest move from the Chinese
:24:44. > :24:48.authorities to open up companies listed to global investors, clearly
:24:49. > :24:53.very limited, 2 billion every day in terms of money coming in, it is the
:24:54. > :24:58.next step for China awakening to the well. If you listen to the comments,
:24:59. > :25:03.people are talking about biotech and solar, people are desperately trying
:25:04. > :25:06.to find ways of making money, it's definitely risky because who knows
:25:07. > :25:10.how these companies are regulated, you just need to look at the scare
:25:11. > :25:15.stories coming out of China but people are looking for new ways of
:25:16. > :25:20.high interest. What is interesting as well is the type of companies you
:25:21. > :25:24.can invest in, until now it has only been banks and state-run
:25:25. > :25:33.enterprises. China is taking baby steps. I wanted to talk about the
:25:34. > :25:40.satellite, we only have 22nd! Quantum physics again! After the
:25:41. > :25:49.programme, I will take you through quantum physics! Look forward to it.
:25:50. > :25:51.You lie! That is it from us. See you tomorrow.