17/08/2016 BBC Business Live

This is business life. Driving with no hands, steering wheel, pedals, an

ambitious plan to have self driving cars on the road in five years. That

is scary. Oh yeah, the big boss of Ford tells

us the BBC the future of automobiles is driverless. Also on the

programme, Cathay Pacific, Hong Kong's national carrier bets against

the drop in oil and gets wrong, loses big time. Its profits plunge

82%. And we will take a look at the markets, its August, give us a

break. And staying with aviation -

Latin America's biggest carrier has had a bumpy ride in Brazil we ask

the Chief Executive if the Rio Olympics will give

the company a boost? And later on we'll look at how

savers and banks are hoarding cash because interest rates are so low -

are you tempted to put your money What are you doing with your cash

now that rates are at all time Comments already coming in, and we

appreciate them. US car maker Ford has promised it

will have a mass-produced self-driving car on the road by 2021

- one that won't even Google has been leading this

particular technological revolution - and has been road testing cars

in the United States for years. Tesla is of course

another key player - but its self-driving project has had

some road blocks. The project has come under scrutiny

after a driver was killed in a driver-assisted

vehicle earlier this year. But Ford is joining the race

and has put it's money where its mouth is -

investing $75 million in a sensor Tesla's Elon Musk doesn't believe

it's the future of driverless cars. Our North America technology

reporter Dave Lee spoke to Ford's president and asked him

if LiDAR is a gamble. I cannot speak to what is going on

in Elon Musk's head, but we believe cloud is very important. One of the

goals is that eventually there will not be drivers. What about those

millions of people that make their living from driving taxis, driving

trucks. Clearly, as you think about the societal benefits around fully

autonomous vehicles, benefits around safety, mobility for elderly or

disabled folks, benefits for the environment because there is less

congestion, clearly those are really huge benefits. At the same time a

lot of economies including the US are very resilient. As we see

situations like this, the economies situations like this, the economies

will be resilient and there will be new sources of opportunity for

people to work, whether in the automotive industry as drivers or

not. head of autos analysis

at BMI Research. What do you make of this? It is

certainly a statement of intent, putting a timeline on it. From their

side that they have control over, the technology is certainly

possible. Many car-makers already have this underdevelopment, they

have been working on it for a few years. I think it's other issues

that might derail this. Things like connectivity, having the right level

of connectivity in cities where you want these cars to work. Consumer

perception, do people actually want them? Will they want to give up

control of driving? Can I just ask, surely the regulation of this in

five years is going to be one of the largest hurdles, jumps. And the

insurance, right? You've got to have the regulation to have the insurer

because one of them crashes into a car, who is it for? This is the big

question. Absolutely, this is something we have highlighted as a

biggest hurdle. And that's why we think it could be ten to 15 years

before you see them in operation fully. All of the regulation and

insurance regulation we have is all around the fact you have a driving

charge of the car. You take that away, who's at fault? The car-maker,

the software provider? There are still many questions to be answered.

In the meantime Ford and many rivals are just ploughing plenty of money

into this technology. Just tell us about the rivals. We know about

Google, we know about Tesla, but many others are in the frame. Yes,

and a lot at the premium end. BMW, Mercedes. They are concentrating on

the premium eventual ride sharing. What about Apple? A lot of talk

about them, they are heavily predicted to be making a car. I

think it's highly likely they will be in there as well. I was wondering

about, we said in the introduction they were putting their money where

their mouth is, but $75 million in the grand scheme of things doesn't

sound like a lot. Hang on, we have been corrected. $175 million, that

sounds a bit better. Elon Musk's against it, isn't he, saying the

technology was expensive? I think the aim of Ford is to get involved

in the development and build up economies of scale so that it can be

made more cost effective, particularly because they're looking

and the mass-market end of this, that's obviously very important for

them, to be more affordable for a big fleet. That's their thinking

behind this. I know LiDAR is generally looked on to be better for

3-D mapping which is vital for, make. Extremely vital. You'd be in

the wrong place at the wrong time with the wrong person. Or no person.

Thanks for coming in, we appreciate it. Much more to squeeze in, go for

it. A former head of Goldman Sach's

mortgage trading unit has been barred from the industry

by US regulators. Edward Chin, former head

of residential mortgage-backed securities, was accused by the US

Securities and Exchange Commission of misleading customers, causing

them to pay more. In addition to the ban,

he has agreed to pay $400,000. China's state council has approved

a new link between its tech heavy Shenzhen and Hong Kong stock

exchanges in a move to open Under the initiative limits

on how much foreigners can invest in Chinese

stocks will be scrapped. But there will be a daily cap

of $2 billion dollars on the amount Online news site Gawker Media has

been sold to media firm Univision The firm outbid media rival

Ziff Davis to seal the deal, which still hinges on approval

from a bankruptcy judge. The sale comes after Gawker filed

for bankruptcy protection in June to avoid paying damages after it

lost a $140m invasion of privacy lawsuit bought by former

wrestler Hulk Hogan. Now, Hong Kong's national carrier -

Cathay Pacific- has taken an almighty hit to its profits.Net

profit for the first half of the year fell 82.% compared

to the same period last year, Karishma Vaswani is

in Singapore for us. At a time when oil prices are low, I

think this story has something to do with oil, it bet against oil prices

and lost that bed, basically? You are absolutely right. They bet that

oil prices, to protect itself from the volatility it is seeing in oil

prices, it bet that it would be higher than it currently is. It's a

bet that many airlines make on occasion. Cathe is said to be more

conservative than most, and that is what you are seeing reflected in the

earnings being released. It's a staggering figure. If you compared

to how regional airlines are doing, Cathay really isn't doing very well.

Now, the big of a problem of course for this airline at at one point was

all one of Asia's finest is that the main market it has been serving,

China, has been seeing a slowdown. That's not all, it's also because of

competition. Chinese carriers are now becoming far more competitive

and becoming very good passengers from the mainland to international

destinations. People don't necessarily need to go through Hong

Kong any more. And that's really starting to hurt Cathay's

bottom-line. I guess you'd call it as a hub, an important hub, if

passengers don't need to go through it, they are in trouble. Great stuff

as always, see you soon. Just a quick flash of the markets -

because it's very The Asian markets pulled back a bit

from their one year high. The price of a barrel

of oil dropped a bit. The pullback also

happening in Europe. But the best market comment has

to come from one of the men who vote on whether to raise

or lower US interest rates. Yesterday he hinted that the cost

of borrowing in the world's biggest Today we get the US FED minutes

from their last meeting and should give us a clue as to what's

going on in the heads And talking of the US -

let's find out what'll be making the biz headlines on that

side of the Atlantic. On Wednesday we'll get a closer look

into the thinking of the Federal reserve policymakers when the

minutes of their July meeting are published. Now, the US central bank

said at its last meeting that the economy stands on a better footing.

Economists will be scouring the notes, looking for true hints on how

likely an interest rate will be. In other business News a few companies

reporting earnings including network equipment maker Cisco. Now, Cisco

has been beefing up its wireless, security and data centre businesses

to really offset the impact of sluggish spending by telecom

carriers and enterprises on its main business of making network switches.

Also reporting, retail giant target and office supplies retailer

Staples. Pretty busy day shaping up on Wall Street. The business editor

from Telegraph media group is with us, good morning James. We are

seeing who is not on holiday, they are on business life. Talking about

the Fed, we get the minutes later, could be quite interesting, couple

of those on the policy-making team, as it were, making hints, saying get

ready for rates going up again in the states. Yes, basically said

growth is it's a rating, the boss of the New York Fed coming out

yesterday and saying called your horses, a rate cut will not happen.

A lot of money has been on a rate hike. But some of the money now

moving to thinking about the December rate. He is an important

chat, he's a permanent voter, one of the people who sit around this big

table and vote whether up or down. And we got more indication later

with the minutes coming out tonight at about 70 GMT. The business life

page is consumed with UK data. Unemployment data coming out today,

consumer sentiment data tomorrow. Some survey today saying we are at a

two-year low. Just talk us through what's happening and what we are

learning this week. Basically everybody is grasping, trying to

find out in the post-Brexit vote environment how the UK economy is

doing. Inflation data yesterday showed inflation increasing up at

1.9%. Quite a bit. Employment data out later is for June, we are

expecting that at 9:30am. We are expecting unemployment down a 4.9%.

But that is just the June, only takes in seven days after the Brexit

vote. So still a bit early to tell. Going to be very hard to compare

anyway. Exactly. Very seasonal. We'll see you again later. Still to

come, it could be hard times for Brazil's airline has the countries

economy installing, seats are left empty. We'll be talking to the boss

about how she plans to turn around the company 's fortunes.

Banks and accountancy firms that help their clients bend the rules

to unlawfully avoid tax could face huge fines under new proposals

Ministers have published plans which would give courts

the power to impose fines of up to 100 percent of the tax avoided -

Andrew Walker is in our Business Newsroom.

How big a step is this? Up till now it is the individual who would get

into trouble, but never the accountants. It is very striking, it

has been welcomed by a lot of tax campaigners, that the position now

is basically, if you take advantage of a tax avoidance scheme that is

subsequently found to be unlawful, you get landed with the financial

consequences. Hitherto there has been no real disincentive for

accountants and lawyers to offer these schemes, it will be required

to has to deal with the consequences. So it is potentially a

major change in approach and other way in which government deals with

the problem of tax avoidance, and we're talking about billions of

pounds a year lost with these type of schemes. The hope is that the

prospect of facing these penalties potentially covering a large number

of clients, may help to choke off the supply of these schemes in the

first place. Briefly, it has not been announced yet but when we

expected to come from the Treasury, with a new government led by Theresa

May? These are consultation proposals, but it is striking,

Theresa May has said that paying your tax as a company is part of the

price, the benefits you get from living in a free, nor for society.

Thank you. We will see you again soon. Balfour Beatty, managing to

narrow its losses, pre-tax losses coming in at ?21 million, a lot

better than the previous year, ?150 million in losses. Its order book is

looking strong as well. Nearly 12.5 million. What about the story with

the job cuts? Unemployment data we're getting out later but also

Cisco. Our top story, forward, the motor

car announces ambitious plans to have a driverless car on the road in

just five years. So no steering wheels, no pedal, no driver! Let's

have a look at the markets. One of the comments from the US Fed,

one of the voting members who decide whether rates go up or down in the

world's biggest economy said, there could be a rate rise, be prepared.

Our next guest has one of the toughest jobs

in Latin America right now - keeping South America's

LATAM is the fusion of two giant companies: Brazil's TAM airlines

and Chile's LAN and it started operating flights under a joint

It operates flights to 140 destinations in 29 countries -

But it has not been an easy start for the joint venture.

Brazil's recession has hit the airline sector hard,

with a 6% contraction in the number of passengers this year.

Chief Executive Claudia Sender took over the helm of the company

A chemical engineer with an MBA from Harvard and is one of very few

women leading a major company in Latin America.

The BBC's Daniel Gallas spoke to her at the Latam's Sao Paulo

headquarters and asked her if sponsoring Rio was a wise move.

I am absolutely convinced it was the right decision, the go-ahead to toe

into the Olympic Games in Brazil. First because Brazil is the largest

market for LATAM airlines group, and it's a way in which we reinforce our

commitment to Brazil and our presence here. It was also an

important moment for the launch of our new brand. Until the beginning

of the Olympic process we were still LAN and TAM and our first LATAM

flight was the one which brought the Olympic flame from Geneva to Brazil,

so it was a beautiful way of marking the introduction of our new brand.

Since then we have been recognised as the second most remembered brand

attached to the Olympic Games service has been very good in terms

of brand recognition. The travel arm of your company offered big

discounts to tourists in the run-up to the Games, has the number of

tourists been disappointing in these Olympics? Before the Games started

there was a lot of concern, whether the Brazilians would be able to pull

this out or not and since the opening ceremony, I think people

were very impressed by the capacity of Brazilians to do the

extraordinary. So as a country, we always surprised when the time comes

to deliver the extraordinary, the same thing happened during the World

Cup, we are now seeing history being repeated during the Olympic Games.

So we have seen more and more people getting excited about coming and we

have seen Brazilians showing their best and not their worst. So all the

concerns about the car, violins, the logistics and whether the Games

would work or not, I think they have diminished significantly. --

violence. I think this has increased the traffic. Latin America saw a

boom in the number of passengers flying in the last decade but now

it's going to a very severe recession, what happened to that

room? The consumption class really grew in Brazil and people who before

could only afford travelling by bus were all of a sudden able to afford

travelling by plane, this is how the market tripled in only ten years. It

made Brazil the third largest airline market in the world. What we

have seen in the past two years is as the recession hit our economy and

people became more cautious in how they spend their money, the leisure

clients are thinking twice before taking another vacation or flying.

But more than anything, the corporate clients, who makes the

bulk of our demand and sales, got a lot more cautious, we have seen

significant reductions in trouble. We do expect that to pick up after

Brazil retakes its growth and start growing its economy again. This

should happen in the next year or two, and with believe Brazil can

start to retake growth, maybe not at the seven speed as before. I wonder

if she has ever heard of the joke, how do you become a millionaire

running an airline? Let's go, quickly! James is back. The

Financial Times has a story which we asked you to comment on. Thanks look

for cheap ways to store cash piles as rates go negative, where are they

putting the cash? They are looking at putting it in storage. In belts.

Rather than, the whole purpose of lowering rates, the irony really is

to get them to lend money, distillate economy but instead a lot

of banks are looking at storing it under the ground in secret faults.

How much can you store under a double bed? $106 million,

apparently. A suitcase can hold $2.5 million! It's also harder because

from later in the year, your notes are going out of circulation -- 500

euros notes. Hayley says she's keeping her money in the highest

paying bank account from now but looking at shares, gold, biotech,

solar companies. My favourite tweet is this person, no name, I have got

a grand, in a shortbread tin, shortbread eaten! Another one says,

regular savings account for highest monthly payments. Another says if I

had any money I would look for options. Sorry to hear that. Let's

talk about this story, which is interesting. The shins and stuck

index licking up with Hong Kong exchange, and opening up more

opportunities -- linking up. The latest move from the Chinese

authorities to open up companies listed to global investors, clearly

very limited, 2 billion every day in terms of money coming in, it is the

next step for China awakening to the well. If you listen to the comments,

people are talking about biotech and solar, people are desperately trying

to find ways of making money, it's definitely risky because who knows

how these companies are regulated, you just need to look at the scare

stories coming out of China but people are looking for new ways of

high interest. What is interesting as well is the type of companies you

can invest in, until now it has only been banks and state-run

enterprises. China is taking baby steps. I wanted to talk about the

satellite, we only have 22nd! Quantum physics again! After the

programme, I will take you through quantum physics! Look forward to it.

You lie! That is it from us. See you tomorrow.