Two fatal accidents. European markets are open and they have opened up in positive territory. Its been another big week of global trade tensions and brexit worries, so well talk through it all with newsnights economics editor, ben chu. Quietly, ever so effectively, microsoft is winning the corporate cloud game. But in an age where brands like apple and google dominate, we want to know do you still use microsoft at home as well as work . Get in touch with us using the hashtag bbcbizlive. Hello and welcome to business live. We start with the only one tech giant that is valued at more than a trillion dollars. Its not amazon or apple, but microsoft. And it has just proved again why it is the worlds most valuable publicly traded company. Injust three months, this giant brought in almost 34 billion in revenue. About the same amount as the value of cypruss entire economy. And unlike a number of the tech giants, this company is actually making money. In fact, 13 billion of profits. How . Office software and Cloud Computing are proving to be the big money spinners for microsoft. The likes of microsoft 365 and the azure business in particular. Whats powering all of this . An unexpected rise in the number of new desktops and notebooks being sold around the world. Theyre up by almost 5 . Why . Companies are trying to replace old machines still running on windows 7 before support for the software expires next year. Theres also the fear that this could be a much more costly investment in the future if trade tariffs rise. All of this has helped the company cement its place at the top of the wall street tree. You can how this year its overtaken rivals to be the only us Company Worth more than a trillion dollars. With us now is william de gale, portfolio manager, at bluebox wealth management. You invest a significant amount of money and global tech and you have your biggest position in microsoft. Why is that . It is one of the few really Large Technology companies that i can see will be an Even Better Company in five years than it is now. The really Largest Tech Companies are the winners of the last few years and they have got that by being incredibly successful and having amazing Business Models and having amazing Business Models andi and having amazing Business Models and i can see them being even better businesses in five years. How will they do that because expectations for this company are huge, but at some point all of these markets have got to mature, including cloud competing for businesses. got to mature, including cloud competing for businesses. I think cloud penetration in the Business Market is still pretty low, high teens or maybe something of that sort. Not all business competing will move to the cloud. A lot of it will move to the cloud. A lot of it will remain on premise for the foreseeable future, but even so there is huge Growth Potential here for public cloud and hybrid mix of public and private and microsoft is one of the two clear leaders in this business, so there is certainly a lot of scope for growth and more importantly the return on the investment they have already made is potentially very high, so they started by building a lot of very big data centres around the world. They are now filling them out with equipment, so the requirement for additional growth is lower and the business is becoming less capital intensive than it was a couple of yea rs intensive than it was a couple of years ago and the result is the bottom line is doing extremely well, so bottom line is doing extremely well, so the top line is low teens, low double digits, but the bottom line growth is a much bigger number and Free Cash Flow is very good. Capital expenditure, that is. Lets talk about investment because they have had quite a different strategy to their major competitor, amazon, in terms of data centres, where they put them and how they are managing them across the world. When is that going to structurally birth rate for them . I think it is bearing fruit. As far as them . I think it is bearing fruit. As farasi them . I think it is bearing fruit. As far as i can see, microsoft in the public cloud, the amazon business has greater revenue, but it seems to me that microsoft business is catching up in terms of its usefulness to businesses. They started off with a policy of distributing their data centres much more widely and giving more flexible teacher users. That is an expensive way to start, but then you have the benefit that you can keep data much closer to the cloud. Maybe there are regular terry constraints and weather data can be so there is much greater flexibility and have got to the point where they can benefit from that. 0k, and queue for coming in. Really interesting to hear your thoughts. Lets take a look at some of the other stories making the news. Anheuser busch inbev, the Worlds Largest brewer, says its selling its australian operations to japans asahi for around 11. 3 billion. The deal is expected to help the belgium based brewer reduced its 100 billion debt, which it took on when it bought sab miller in 2016. The German Chemicals giant bayer has welcome a decision by a us judge to call for a retrial in one of the lawsuits about its roundup weedkiller. Alva and Alberta Pilliod had previously been awarded damages of 2 billion after a jury found the product caused them to get cancer. The company say the retrial decision is a step in the right direction and insists roundup is safe to use and doesnt cause cancer. German auto maker bmw and chinese Online Gaming giant Tencent Holdings are teaming up to launch a Computing Center in china that will help develop self driving cars. The Computing Center, which will start operations by the end of the year, will provide cars with data crunching capabilities to help them drive semi autonomously and, eventually, autonomously. The planemaker boeing has put more cash aside for the growing bill for its 737 max crisis. It says it will spend 4. 9bn compensating airlines over the grounding of the airliner. Its been banned from flying since march because of those two crashes will killed 346 people in ethiopia and indonesia. Our Business Correspondent theo leggettjoins us. This is quite a big amount of cash that it this is quite a big amount of cash thatitis this is quite a big amount of cash that it is having to put aside. It isa that it is having to put aside. It is a decent chunk of cash, 5 billion in anybodys money is a lot, but it is likely to be just the start. This is cash that boeing is setting aside to compensate airlines. You have airlines that already have the 737 max and had it in service and those airlines are currently sitting on the ground and not earning their keep and in the meantime the airlines are having to play financing cost on them and maintain them and so on and so they are making a loss. Other airlines have been extending a lot of new aircraft, to service and they havent had that so they have had to either cancel flights or lease aircraft in or keep older models working for longer, older models are less fuel efficient and they cost more to run so they are racking up losses as well and these losses are quite substantial so ultimately boeing is likely to have to pay compensation for that and that is what this £5 billion is about. But that figure relies on boeing starting the process of getting the 737 max rear by regulators in the autumn, the Fourth Quarter of this year. That may not happen. And of course it does not cover the potential cost of a wealth of lawsuits brought by relatives of the victims of those two tragic accidents. Thank you very much. National Australia Bank is getting a new boss. Ross mcewan is currently in charge of royal bank of scotland where hes has been seen as the man who turned things around after the Global Financial crisis. That led rbs to be bailed out by the uk government which still owns 62 of the lender. Hes also got a big challenge in his new role. Sarah toms is in our Asia Business hub. As you said, it is a big challenge and the question is whether he can turn around the business. We have ross mcewan coming in after the rather abrupt departure of the ceo and the chairman earlier this year. They left in the fallout of a misconduct enquiry into the financial sector. This Royal Commission enquiry criticised the whole industry across the board for things like fee overcharging and aggressive sales tactics, but nba had a particularly hard time over accusations that the bank failed to accept responsibility for any wrongdoing. So now neb which is australias fourth largest bank is fighting to win back the trust of customers and that is something ross mcewan will have to do along with help to restore the banks reputation and credibility. But he will be a fresh face and he has already experienced challenges leading rbs through restructuring during tough Market Conditions and thatis during tough Market Conditions and that is something that the bank will wa nt to that is something that the bank will want to do as there is a lot of pressure increasing in australia to bring up simple Banking Systems and slash costs. Absolutely. Thank you very much indeed. Asian stocks rose on friday after a top Federal Reserve official cemented expectations of a us Interest Rate cut later this month, fuelling appetite for riskier assets. In oil markets, crude surged after the United States said its navy destroyed an iranian drone in the strait of hormuz, a major choke point for global crude flows, raising concerns about supply disruptions out of the region. Europe is higher. A strong oil sector and firming expectations of more monetary easing from the worlds bigcentral banks drove european shares half a higher onfriday, ending a volatile week marked by a series of luke warmcorporate earnings. Michelle has the details of whats ahead on wall street today. Investors want to know how the all sector is faring, due to cutbacks. Also Stronger Customer spending is likely to left profits at American Express but has the Credit Card Company be able to lead on how much it spends on its rewards programme . On the economic strength, the university of michigan is expected to say its Consumer Sentiment index rose injuly. Joining us is fiona cincotta, market analyst at city index. The Federal Reserve and expectations for a rate cut. Lower inflation does mean that lower rates look like they were becoming sometime soon, dont they . Yes, this has been a huge focus by the market now for a couple of weeks. Ever since it was hinted that there could be a rate cut on the way. Last night, the market up till now had been sort of pricing in 25 basis point cut, so 0. 2 when the Federal Reserve meet at the end of this were month. Last night, we had williams come out and suggest that the fed should actually act quickly and take sort of sharp action and the markets have interpreted this as actually may be the fed is considering a 50 basis point cut, so a much deeper cut than they were pricing in originally. That has caused the dollar to drop and then obviously stocks have risen on the back of that with a more co mforta ble on the back of that with a more comfortable business environment. Lets talk about oil. A favourite topic of hours here. The main reason why it is my favourite is because it is just so volatile right now. We have seen the rise today and busy there are geopolitical tensions on there are geopolitical tensions on the strait of hormuz. Absolutely. There are some key factors that play. Oil has been trending lower across the week, quite sharply as well. Us crude is down 7 across the week. As we have seen, Global Growth is really slowing. China plasma growth is down at three decade lows, but then last night this morning we have had problems the middle east which is supporting the price and putting it higher again so lots of factors in play there that is keeping it supported. And also we have had the global outlook, the outlook for oil has also been reduced, so that has well is keeping any rise in check. Thats right. We are going to talk to you about some of the paper studies in about 15 minutes, so speak to them. Thank you very much. Still to come, brexit uncertainty. Youre with business live from bbc news. Two million Public Sector workers are reportedly set to get a £2bn pay rise. What . Not each. In total. The treasury will unveil the biggest Public Sector pay rise in six years on monday as one of theresa mays final acts as prime ben thompson has been looking at the details this set to be announced on monday. We expect it to be a pay rise worth about £2 billion for many Public Sector workers. It would be the biggest Public Sector pariahs in six yea rs biggest Public Sector pariahs in six years and expected to be the last major move of theresa may as prime minister. So what do we know . Well, teachers will get a rise of about 2. 796, teachers will get a rise of about 2. 7 , soldiers in line for a bit more, 2. 9 . Police officers will get about 2. 5 extra. Crucially, it wont apply to people like nurses or junior civil servants. They are not in line foran junior civil servants. They are not in line for an increase. Nonetheless, this rises above inflation. Inflation currently running at about 2 , so significantly higher than that. But not as high as that seen in the private sector. A deal there on average are running at about 3. 5 higher, so still below the levels that we are seeing in the private sector. Big questions about where the money will come from to pay for this. There is not a huge amount of spare money in the system and so many expecting there will be savings elsewhere to fund these increases for Public Sector staff. And remember those Public Sector staff have been subject to a pay freeze for many years as part of the austerity cuts brought in by the coalition government, is a Big Questions about how this will be funded. And remember still below the deals announced in the private sector to, so still a significant gap there. Nonetheless, public welcome news when it is officially announced on monday that 2 million Public Sector staff are set to get a pay rise, a pay rise worth £2 billion. Not each. The bbc and itv have announced details of a new Subscription Service which is called britbox and it will cost about £5 per month. It will be due to launch in the last three months of the year. Plenty more than that. Youre watching business live our top story. Microsoft shares have risen again in after hours trading after more strong results. The worlds only trillion Dollar Public Company is doing well in Cloud Computing. A quick look at how the markets are faring. The european markets that have a percent due to good news. It has been a pretty busy week. Its been another busy week of business and economics news with global trade tensions and brexit worries all taking their toll. Ben chu is economics editor for the Bbcs Newsnight programme and is here to talk us through it all. Lets start with a trade war. How is it all going to end . For china, it is biting now with the lowest growth rate i think since records began, so since the early 90s. 62 in the second quarter. We had some horrendous trade data from singapore, from south korea, from japan. So really right across asia, donald trump osman trade war is hitting and he is claiming credit for it in a very unhelpful tweet. He said chinas growth rate has slumped. This is because my trade what is biting and this is why they will be forced back to the table and it is all working brilliantly to plan. Leaving people believe him . It is certainly true that it is having an impact on the global economy. This is not just an impact on the global economy. This is notjust him saying it. A lot of analysts say that it is feeding through and they are talking about a global recession, which does not mean necessarily contraction but growth rate below 2 . He is clean credit and on this when he might be right. Lets talk about things closer to home. Brexit has been dominating the news yet again and one of the interesting things we talk about often on this programme is the pound and how it is very much a barometer of how investors see the goings on in westminster and the pound had a bit of an up and down week. Yes, it was down on the talk of the backstop being dead from the two leadership candidates, Boris Johnson and jeremy hunt. They said the pound was down to 1. 24, which is the pound was down to 1. 24, which is the lowest in two years. And that you had as many rebellion against the prorogation of parliament and a little spike up in the pound so absolutely it is a barometer and the choices that traders are really worried about the prospects of the uk crashing out with no deal and also this is going to keep doing that. Analysts are saying, how low could it go . No deal brexit, some are saying parity with euro, 1. 1 with the dollar, so you havent seen anything yet. He said that for their own effectively the suspension of parliament, that is what you meant by that, that coming out in th