:00:00. > :00:09.Now it's time for all the business news.
:00:10. > :00:18.World Business Report - Ben is standing by.
:00:19. > :00:26.Toyota may reveal a fall in profits as it slips from the world's number
:00:27. > :00:28.one carmaker - to the world's number three.
:00:29. > :00:33.One year on from the Games, how Rio's property boom
:00:34. > :00:58.we start in Japan where car giant Toyota is set
:00:59. > :01:01.to report its latest results in the next few hours.
:01:02. > :01:19.For years Toyota was the world's top carmaker.
:01:20. > :01:23.Its Corolla model is still the best selling car the world has ever seen
:01:24. > :01:29.but recently Toyota has lost its crown Let's show you some
:01:30. > :01:34.Toyota's expected to reveal a sharp fall
:01:35. > :01:37.in profits for the three months to June.
:01:38. > :01:39.Bloomberg News estimates it made just under $5 billion
:01:40. > :01:42.that would be a drop of 15% on last year.
:01:43. > :01:44.That's partly because of a big increase in research
:01:45. > :01:48.Last year - despite Dieselgate - Volkswagen sold more cars -
:01:49. > :01:53.And in the first half of this year they were both overtaken
:01:54. > :01:55.by Renault-Nissan after it added Mitsubishi
:01:56. > :02:11.So Toyota is spending big to attract new customers.
:02:12. > :02:13.Last month it committed another $100 million
:02:14. > :02:21.That is on top of the $1 billion it's already spending to develop
:02:22. > :02:24.self-driving cars and other tech at a new research centre in the US.
:02:25. > :02:28.Toyota's US boss Jim Lentz spoke to this programme at the time.
:02:29. > :02:36.He told us it's all about winning over 20 and 30somethings -
:02:37. > :02:47.There was a belief just a few years ago but Gen Y was not interested in
:02:48. > :02:52.cars, they were interested in ridesharing and car sharing. If you
:02:53. > :02:56.look at small luxury SUV is, a lot of that has been driven by Gen Y,
:02:57. > :03:00.especially in the US, where they were saddled with large college
:03:01. > :03:03.debts, they came out of college and had jobs but not necessarily
:03:04. > :03:05.careers, they have now advanced beyond that and their desire to
:03:06. > :03:18.purchase cars is now coming back. That was the boss of US Toyota.
:03:19. > :03:25.Annamarie from BMR research joins me. We heard him talking about the
:03:26. > :03:29.importance of capturing the new generation of car buyers. A lot of
:03:30. > :03:36.the wisdom suggests that generation does not want to buy cars but now,
:03:37. > :03:40.Jim's Bjorn that is maybe they do but it's got to be the right type of
:03:41. > :03:47.car. Absolutely. A lot of it comes to do, attracting them. Part of the
:03:48. > :03:51.reason companies were worried people didn't want to buy cars, especially
:03:52. > :03:55.younger people, they had more interest in technology so maybe if
:03:56. > :04:00.you can take cars down that route, you can win them over. In that
:04:01. > :04:04.sense, although a lot of the analysts are expecting Toyota is
:04:05. > :04:08.probably going to report a fall in profits, but that is down to them
:04:09. > :04:14.spending more on research and developing the tax side of things,
:04:15. > :04:18.it sounds like that is no bad thing. Absolutely, and if you look at the
:04:19. > :04:24.sales side and the revenue, is expected to be better, volume
:04:25. > :04:28.sellers are doing quite well. A lot of it is on expenditure. An electric
:04:29. > :04:39.vehicles, going straight to hydrogen. Autonomy, AI, they are
:04:40. > :04:43.looking into a lot of technologies. They seem to be in a bit of that
:04:44. > :04:47.niche position with self driving cars. You think that was a
:04:48. > :04:56.misjudgement? I think it was because there was a lot of support from the
:04:57. > :05:01.Japanese covenant, so the carmakers got support to get into hydrogen and
:05:02. > :05:13.it is very niche, as you say, there is a lot of infrastructure. It is a
:05:14. > :05:16.cautionary tale. Toyota seemed to be ahead of the pack in terms of
:05:17. > :05:23.developing tack. Everyone knows hybrids, they associated with the
:05:24. > :05:28.Prius and suddenly, they find themselves overtaken. They are one
:05:29. > :05:35.of the few companies that does not have a strategy for. They could have
:05:36. > :05:39.something big country with the solid-state battery, that could be a
:05:40. > :05:43.big development but in terms of actually having models to the
:05:44. > :05:45.market, they are behind from else. We will watch very closely for those
:05:46. > :05:48.results. A year ago - as host city
:05:49. > :05:53.of the Olympic Games With Olympic fever came
:05:54. > :05:57.a real estate boom. But with Brazil's economic problems
:05:58. > :06:17.mounting, it's turned to bust, As views from the office window go,
:06:18. > :06:23.it doesn't get much better than this. But for this office building,
:06:24. > :06:28.despite lavish decorations, marble and art deco, not a single unit has
:06:29. > :06:32.been sold or rented since it opened about a year ago. Predictions of a
:06:33. > :06:38.post- Olympics boost to business have failed to come to fruition.
:06:39. > :06:42.Leading up to last year 's Olympic Games, Rio de Janeiro had a real
:06:43. > :06:45.estate boom with dozens of new commercial buildings like this one
:06:46. > :06:50.cropping up but last year, after the Games were over, the city went into
:06:51. > :06:56.a severe economic crisis and investors are now facing a new
:06:57. > :07:02.reality. When we planned this building, rear's real estate market
:07:03. > :07:06.was on a high. Today, we are in the low sales cycle which will change in
:07:07. > :07:10.the coming years. So for now, we are offering lower prices, trying to get
:07:11. > :07:19.tenants and waiting for better times. The crisis is national but
:07:20. > :07:26.recession is biting hardest in Rio. More than 80% of new office space
:07:27. > :07:29.remains an rented. The local government is virtually bankrupt.
:07:30. > :07:38.Police officers, teachers and civil servants are not getting paid. This
:07:39. > :07:41.area of downtown Rio received over $2 billion in investments. It was
:07:42. > :07:46.supposed to be a new hub for tourists and businesses with a
:07:47. > :07:50.lavish Museum of tomorrow. Last month, the company responsible for
:07:51. > :07:55.cleaning and security abandoned its contract after months of not being
:07:56. > :07:59.paid. It's a very good moment to invest because the prices are very
:08:00. > :08:06.low so it's easy to find a good deal. If you want to bring up your
:08:07. > :08:10.company, to set up a brand here in Rio de Janeiro, is a good moment but
:08:11. > :08:14.the recovery will -- the recovery of -- the recovery will happen in the
:08:15. > :08:19.long-term. It depends on the recovery of Brazil. Rio did have one
:08:20. > :08:24.of the most expensive real estate markets in Brazil and now developers
:08:25. > :08:26.are having to sit and wait patiently for prices to go up again or risk
:08:27. > :08:44.selling at a loss. In Asia, more trouble for Uber. It
:08:45. > :08:48.says it has taken action to fix cars after one of them caught fire.
:08:49. > :09:06.According to The Wall Street Journal, Uber rented Vezel SUV 's.
:09:07. > :09:12.Marika Oi, just bring is up-to-date. Then, it feels like another scandal
:09:13. > :09:19.for Uber and when contacted by the BBC, it said as soon as we learned
:09:20. > :09:23.other Honda Vezel catching fire, we took swift action to fix the problem
:09:24. > :09:28.but we acknowledge we could have done more. Of course, the company
:09:29. > :09:34.has been involved in quite a lot of scandals. The resignation of the
:09:35. > :09:41.boss and founder getting a lot of attention. We still don't know who
:09:42. > :09:45.is going to replace him. There are sexual harassment allegations. The
:09:46. > :09:50.company is accused of stealing driverless technology from Google
:09:51. > :09:53.and it does feel like it might have been expanding to rapidly into
:09:54. > :10:01.Google markets like Singapore without doing all the due diligence.
:10:02. > :10:04.Sterling has fallen sharply against the dollar and the euro
:10:05. > :10:07.after the governor of the Bank of England warned that uncertainty
:10:08. > :10:09.over Brexit is already weighing on the economy.
:10:10. > :10:12.Mark Carney's comments came as the Bank voted to hold interest
:10:13. > :10:15.rates at a record low and cut UK growth forecasts.
:10:16. > :10:18.It edged this year's growth forecast down to 1.7% from its previous
:10:19. > :10:25.It also cut its forecast for 2018 from 1.7% to 1.6%.
:10:26. > :10:34.The Nikkei is lower - feeling a drag from the strong yen.
:10:35. > :10:38.The dollar fell even more against the Japanese currency
:10:39. > :10:41.after that report on the new moves in the investigation into alleged
:10:42. > :10:44.Russian interference in the US election.
:10:45. > :10:47.The weaker dollar against the yen makes Japan's
:10:48. > :11:04.Some currency analysts are warning the dollar could fall yet further -
:11:05. > :11:07.and they're not expecting US wages data out later to offer much relief.
:11:08. > :11:10.While the dollar fell, there was a mixed picture for stocks
:11:11. > :11:14.The Dow edged to a record high for the seventh straight day
:11:15. > :11:16.Thursday - staying above the 22,000 mark -
:11:17. > :11:23.although the tech-heavy Nasdaq retreated.