on the indian markets, not one we talk about much, i will tell you about that later. and mobile adverts targeting you based on where you are — we'll be talking to a firm giving away free wifi but with a catch. three years after it started in sweden, a company becomes the first in the us to microchip its employees. we want to know, would you sign up for it? just use the hashtag #bbcbizlive. the micro—chipping, convenient maybe, but lots of privacy issues. we will get into that later. hello and welcome to business live. three of the world's most valuable internet firms release their latest numbers this week. the biggest by far is google‘s parent, alphabet. it has just reported a 21%jump in revenues. that was better than expected, but there was less cheer when it came to earnings. net profit fell 27.7% to $3.5 billion. hitting the bottom line was a $2.7 billion fine by the european commission which ruled the firm abused its power by promoting its own shopping comparison service in its search results. google says it may appeal. nevertheless, alphabet‘s share price fell 3% in after—hours trading. but take a look at this — over the past nine years, the firm's share price has rocketed as it has dominated the internet advertising market. from $140 a share, tojust under $1,000 a share. it's now worth more than two—thirds of a trillion dollars. amit pau is managing director at ariadne capital. thank you very much forjoining us this morning. what is your reaction to the figures? should google be pleased or is more going on underneath the surface? at a business level, the results are stunning. generating 21 billion, to grow 21%, it is phenomenal. they make it look so simple, it is impressive. the key concerns are operationally, the cost of driving traffic to google sites has increased far greater than the revenue. that is one. the second is, 90% of google's revenue still comes from digital search. where will future revenue streams come from? cloud has made good progress. at a business level, encouraging signs on how google grows beyond being a search company but the elephant in the room is the eu fines. a record—breaking $2.7 billion. is that something that is now done and dusted? is there more to come? i suspect there will be a lot more to come. this was one of only three anti—trust rules that you are looking into. the others are on android, if the fine comes in, it could be 9 billion, and another could be 9 billion, and another could be 9 billion, and another could be significantly more. that is why there is a significant risk overhanging the share price. the other thing we were talking about, going hand in hand with the fine, the changes that google has to make asa the changes that google has to make as a result of that ruling, looking ahead, that could have potentially a bigger impact than the fine itself. firstly, google will have to change the way it operates. notjust in the shopping cart, but all other areas. that will be great for the consumer, and the second thing, where will consumer ownership of data reside? alphabet not the only big tech company reporting this week, facebook and amazon are due. do you think they will be the same? absolutely. netflix last week, they delivered sterling results. watch out for some very strong results from the tech giants. thank you very much for your time. let's take a look at some of the other stories making the news. luxury shoemakerjimmy choo has just been bought by design house michael kors for nearly $1.2 billion. jimmy choo, which is famous for its stilettos worn by celebrities, announced it was putting itself up for sale in april this year. michael kors, which has been struggling recently amid slowing sales, will buy choo for 230p per share. the uk's serious fraud office has opened an investigation into british—australian mining giant rio tinto group. the sfo says the probe is into suspected corruption in the conduct of business in the republic of guinea by the rio tinto group, its employees and others associated with it. it's asking anyone with relevant information to get in touch. rio tinto says it will fully co—operate with the investigation. dutch firm akzonobel, the owner of dulux paint, has seen a fall in profits. akzo has been fighting off a takeover approach from us rival ppg industries and promised to grow profits as part of its rejection strategy. the company says second—quarter profit fell 6% to $537 million due to weak demand in some markets and higher raw material costs. it is the school summer holidays in the uk, lots of people heading off, wea k the uk, lots of people heading off, weak one, heading abroad to the continent for holidays. eurotunnel, it may well be an option many people are taking, quicker than the ferry sometimes! you speak from experience! eurotunnel are upbeat, about prospects, despite brexit. when the eu referendum happened last year, eurotunnel lost a third of its value in a huge shares plunge. they are saying now it has had little impact on its financials. lots of other business stories on the web page as well. south korea's sk hynix has reached a new earnings high. they reported this morning that profits rose a whopping 57a% compared to a year ago. mariko 0i is in singapore. that is a pretty impressive set of results, how did they do it? indeed. it might not be exactly a household name outside of south korea, but it is the second biggest chip maker in the world after some sun and its products are used in all of our smartphones and made by the likes of apple and the chip—makers and what a nalysts apple and the chip—makers and what analysts calling ash super cycle where huge demand is causing a supply shortage and the super is expected to last at least 2018. in the quarter the company just reported, it is seeing a huge increase in shipments, up 20%, and the company made nearly $3 billion in those three months. quite an impressive figure, as you say. but as shares were falling down 3.5% because investors were expecting those strong results. thank you. let us those strong results. thank you. let us take a look at the markets. asian markets, barely moved, while investors await for the next us federal reserve meeting happening later this week. i want to mention the indian stock markets. india's stock markets hit record highs on tuesday with the national stock exchange's much—watched nifty index breaking the psychological 10,000 point mark for the first time as traders take heart from economic reforms. the nifty consists of 50 of india's top companies across more than a dozen sectors. bombay stock exchange's sensex index also hit an all—time high. the two markets have piled on 20% this year, outperforming most other global markets, including in japan and the united states as confidence is boosted by reforms to asia's third—largest economy. let us have a look at how the european markets begin the trading day, all in the green, some only just. in commodities, oil prices extended their recovery on a pledge by leading 0pec producer saudi arabia to cut exports in august to help reduce the excess global supply which has depressed prices. haliburton‘s executive chairman also said the us shale drilling boom would probably ease next year. brent crude and us crude prices both rose on those developments. and samira hussain has the details about what's ahead on wall street today. the federal reserve, america boss for central bank, will begin their two day meeting on tuesday. many a nalysts two day meeting on tuesday. many analysts and investors are not expecting another rate rise at this meeting, but they will be looking for more guidance on when they will start reducing the bond portfolio. american car—maker general motors will be reporting earnings and it comes at a time when investors are worrying about the declining demand for cars in the us. another company has already said they are seeing higher than expected costs related to the sale of 0pal. also reporting earnings, caterpillar. improving demand in the construction and energy industries will likely see the compa ny‘s profits energy industries will likely see the company's profits go up for the quarter. investors are looking for an update on full—year financial forecasts which the company raised in april. joining us is alix stewart, a fixed income fund manager at schroders. let us start with 0pec. it looks like there is relief for the oil price. explain what is happening. hopes they will extend or even increase production cuts they have been trying to implement previously which obviously would be very beneficial for the which obviously would be very beneficialfor the oil which obviously would be very beneficial for the oil price. it is just a question of whether they can get everybody on board and to play by the rules. saudi arabia have said they will try to bring down production. nigeria, in the original agreement to curb production in november, nigeria and libya were not held to any agreements. nigeria now say they will. they need everybody else to come on—board. the saudi arabians and the russians are two of the bigger ones. if everybody else ignores the rules or has exemptions, it is quite hard to keep the cap in place. quite often the problem with oil is when 0pec get together and bring down production and the price the us shale production kicks in, onceit the us shale production kicks in, once it gets over a certain amount. is that a danger? that is what we have seen. halliburton and others have seen. halliburton and others have talked about cutting back a bit in shale, with the oil price is around 40— $50 a barrel, at the crunch point for these guys. changing tack slightly, big move for jimmy choo. slab divans include —— a big buyout. there is value still seenin big buyout. there is value still seen in luxury brands. 0ver big buyout. there is value still seen in luxury brands. over $1 billion for shoes. have we still got the money to pay for these items? clearly some people do! not me. alex, have you got any? i have, actually. thank you very much. still to come... mobile adverts that target you because of where you are. we'll be talking to the firm behind "proximity marketing". you're with business live from bbc news. "unfair charges" levied on buyers of new—build houses could be banned in england under a proposed crackdown. leaseholds on new—build houses would be outlawed, while ground rents could be dramatically reduced, under government plans subject to public consultation. andrew walker is the bbc‘s economics correspondent. why do we need this crackdown? this is something the communities and local government secretary, sajid javid, calls a great scandal of the housing market, whereby people buying new homes may buy them on a leasehold basis and have the playground rent which can in some cases escalate dramatically. —— pay ground rent. he has written in colourful terms in the day's times. he says if you go to the butcher and buy sausages, you do not get an invoice for the following 100 years. if you buy a bucket and spade, you do not get change of ownership fees when you pass it on. he talks about some examples and one case of 3000% increases in the ground rent to a total of something approaching £10,000. he thinks there is certainly, although there are cases where leasehold arrangements are justified, they are commonly used in flats, he is concerned that in some cases they are being used in an unfairand cases they are being used in an unfair and financially abusive way. aside from making comparisons with sausages and buckets and spades, what is the government proposing to do? we have a consultation paper and one of the things sajid javid says is that if house—builders are not prepared to step off the gravy train, he is prepared to derail it. he wants to look at banning unfair and unjustifiable use of leasehold arrangements and also to ensure that where there is a case, that the ground rent should be paid at the permanent peppercorn rent, is the phrase he uses. it is consultation at this stage, but i am sure he will get some very vigorous responses to his request for views. andrew, thank you. we have got some interesting stories on the business live. a rise in personal loans, dangerous bank of england officials say. we have got interesting figures. credit card balance interesting figures. credit card bala nce tra nsfers interesting figures. credit card balance transfers and personal loans and outstanding car loans have increased by 10% over the past yearment however, household incomes have increased by 1.5%. so that's quite a chunk of money to find to bridge the gap. we'll keep an eye on that story. check it out on our live page. you're watching business live. our top story: the parent company of google says it saw strong growth in the three months to the end ofjune with revenues up 21%, but profits have been hit by a record fine imposed by the european commission last month. a quick look at how markets are faring. this is how they look at the start of the traying day. all of them in positive territory. the ftse100 in londonjust about positive territory. the ftse100 in london just about outperforming frankfurt and paris. now let's get the inside track on a software which helps you stay connected on the move. despite the falling cost of mobile data plans, many people rely on the 300 million public wi—fi hotspots available worldwide. devicescape is a piece of software which enables smartphone users to connect to multiple wifi networks without going through the login process for each hotspot. this means that users can stay connected to public wi—fi while moving from place to place. in return, devicescape allows brands to send smartphone users targeted adverts. devicescape is embedded in other popular apps — this enables companies to send promotions to consumers based on their location. wrerjoined by the vice president of devicescape. thank you very much for coming in. i think we've explained how it works and what proxity marketing is. the idea is you target somebody based on where they are. a company can come to you and say, "we wa nt to company can come to you and say, "we want to target people as they walk into a supermarket or enter a bus or underground and you can do that." yes, absolutely. i guess why that's important as more and more money flows from traditional advertising into mobile, advertisers want to know that they are getting good return on that and the adverts are releva nt. return on that and the adverts are relevant. like wise as consumers use their mobiles more and more as a way to consume information, thet want to know the stuff getting them is releva nt. know the stuff getting them is relevant. this ensures the messages that gets to the consumers is targeted at the right time and the right place. the adverts pop up on the lock screen. there will be people who don't want to have the adverts. can people opt—out? people who don't want to have the adverts. can people opt-out? lock screen notifications are well understood by consumers. it's something they use every day for their e—mails, but if it is something they don't want to see, they can disable that this is a transparent opt—in service that they can remove if they don't want to. are you targeting business users? is it everyone? is it more people who are using it for leisure and sending whatsapp messages and so on?” are using it for leisure and sending whatsapp messages and so on? i guess at this point we are very much targeting consumers. we work within the entertainment industry. we tend to target people in public locations like supermarkets or coffee shops and cinemas for example. your success rate is 13% for the click through rate. so for every 100 m essa 9 es through rate. so for every 100 messages that are sent, 13 people will, well, so let me count, 87 people will delete. 13 people will click on it and will go through. how does that compare with the success rates of other types of advertising? it is very, very high actually. if you look at the industry average for in app geotargeted advertising. this is when you open up an app that's releva nt to is when you open up an app that's relevant to your general locality, we are 18 times higher than the industry average which shows that consumers like this format and this form of advertising. i suppose the danger is that for example 4g and 5g coverage gets so good that we stop using wi—fi hotspots as much. what's your insulation against that to safeguard the future of what you're doing? so we have moved our service so the consumers don't have to connect to the wi—fi. 0ur so the consumers don't have to connect to the wi—fi. our software sits there and it looks for the networks and just by its presence and by us knowing that they are in the location they can serve that particular advert to the consumer. what about rural areas? if you haven't got the wi—fi hotspots then you are not going to be able to target the consumers? well, over the last ten years, we have crowd sourced 300 million locations. so we have got broad coverage. pretty much anywhere that's a public location has some form of wi—fi today and i don't think that's going away any time soon. so we can target anywhere that's a public location today. time soon. so we can target anywhere that's a public location todaylj suppose what do you see as the long—term ambition for the company? what would you like to see it doing in five or ten years? we are trying to improve the effectiveness of mobile marketing. so trying to give advertisers much better return rates on their money and a lot of visibility. so it is much the antidote to programmic advertising. that is specific and very relevant to the consumer. we would like consumers to get less stuff, but the stuff that they get is more interesting to them. we look forward to hearing how it goes. 0wen, thank you very much. 0wen geddes there. a wisconsin company is to become the first in the us to implant microchips inside its staff. so far more than half its employees have volunteered to have a chip put into their hand. patrick mcmullan, the director of the company, three square market, told the bbc it's an exciting development. our employees, they‘ re innovators. we're a technology company and they're excited about it and what it can mean. the thing to understand is this is not a job performance tracker. it has no gps functionality. what it has is different things that helps you to identify who you are, what our business is and to use it as a form of payment and by no means is it something that we use to track what they're doing, where they are and so forth. not at all. this takes the level of security to a whole new level. yes, it has to be handled right. one of the things that we're very much ensuring that it's responsible innovation and ensuring that it's used correctly and used for the purpose that it is intended, not for something that nobody would want to have happen. that was patrick mcmullan there. alix stewart from schroders is joining us again to discuss. a really interesting development that. how do you feel alix, would you get microchipped? you can see how we are moving from scanning cards to using your phones for whatever and i guess the logical next step in some ways is to just have a chip. you don't have to bother remembering anything. the one thing to note about the chips, they haven't got gps. so your boss can't tell if you're in the office. it is for logging on to computers, paying for logging on to computers, paying for food. getting for logging on to computers, paying forfood. getting in and out of buildings. it would stop that problem when you get to the doors at reception and someone can't find their pass and they are blocking the way. it happens here. we have got a lot of tweets. beth says yes, i'd do it, but i'd microchip my children first. another viewer says no way. julie says, "if your employees are not responsible to keep track of their badge, i would question the competence of any job?" what's the fun of bionic when your own super power is being able to open doors and pay for stuff! we were talking a while ago about whether brexit is causing slink flation. things like chocolate bars getting smaller, but the price saying the same. the financial times says it is not down to brexit and the weak pound, but it has been going on for sometime? to brexit and the weak pound, but it has been going on for sometime7m seems to have been going on for the last five years, not just the last year. i think we have all been aware of it that some of our favourite chocolate bars don't seem to be as big as they used to be. brexit must play a part. part of it would be import costs which have gone up? as the consumers have been more constrained we have had austerity and so on and people want to see the prices rise, this is the way that manufacturers have got around it by shrinking. would you rather pay an extra amount to get the same sized toblerone? some of the other things mentioned are toilet roll. 240 sheets down to 221 and fewer biscuits in a packet and less chocolate bars. we notice that. we know you have jimmy choo chocolate bars. we notice that. we know you havejimmy choo shoes! the reason we are talking about, there isa reason we are talking about, there is a quote on us immigration officials checking out on the importation of fake designer chairs. it is incredible. the number of them. it is really nice to think that they are training people to spot the difference between fakes and real chairs to clamp down on this and they have been quite successful. last year they seized over $4 million of fake chairs. that's an extraordinary amount. alix for joining that's an extraordinary amount. alix forjoining us. that's it from business live today. there will be more business news throughout the day. we will be back in these chairs, not designer ones, the business live chairs tomorrow. see you then. hi there. good morning. yesterday we had quite a bit of cloud across eastern parts of the uk. some damp and drizzly weather. today i'm hopeful it should be brighter the for all of us during the afternoon we are looking at sunny spells and it will feel pleasant as well. yes, this morning there is cloud across eastern scotland and down the eastern side of england, but the cloud will thin and it will break up gradually during the morning so by the afternoon, there should be some brighter weather. some sunshine from start to finish in south—west england and across wales. yes, the potential to catch maybe one or two showers here, but those showers few and far between. for most, it will stay dry. certainly a warmer afternoon across east anglia and the south east compared to yesterday with a bit more sunshine. sunshine for much of northern england through northern ireland and through most of scotland. we could see some showers here particularly the far north—east where it could stay cloudy and damp and dank around the coast there of aberdeenshire and that's where temperatures could be tempered at 14 or 15 celsius. this evening and tonight, largely quiet conditions really, you notice this area of blue here and the next batch of rain spreading in from the west and with quite a bit of cloud it won't be a cold night. temperatures staying up into double figures, but it is that rain which you can see which is associated with the weather fronts wrapped around this area of low pressure. a deep area of low pressure. a deep area of low pressure for the time of year. that's bringing with it some strong and gusty winds. so throughout wednesday, all of us at some point during the day will see some rain. the rain more patchy towards wales and the midlands and the heaviest of the rain will be across northern england and scotland. it will clear away and by the afternoon, there will be brighter skies in scotland and northern ireland and western fringes of england and wales. but staying cloudy and damp and drizzly towards the south and the east, not feeling particularly warm either. that weather front will clear away, but the low pressure system associated with it is still with us associated with it is still with us as we go into thursday. a look at the white lines and the isobars, fairly closely tightly packed. that means strong winds likely across northern and western areas. more rain spreading into northern ireland and the west of scotland. elsewhere, it should be a dry day on thursday. there will be sunny spells developing. feeling warmer as well here, but blustery conditions and on friday, it is a similar story for england and wales with sunny spells. largely quiet conditions really, showers and outbreaks of rain across the north and the north—west. top temperatures on friday, 17 to 21 celsius. more details on the website. but that's it from me. hello, it's tuesday, i'm victoria derbyshire, welcome to the programme. our top story today... charlie gard's parents are spending their last precious moments with their terminally—ill son after ending their legal fight to take him to the us for treatment. the charlie, we say, mummy and daddy love you so much, we always have and we always will and we are so sorry we always will and we are so sorry we couldn't save you. charlie is expected to die within days. we will get reaction from some of those who have supported his parents. an nhs report into the use ofjoiner or mesh in england has been branded a whitewash —— vaginal. campaigners have been calling for the use of the mesh to be suspended. have been calling for the use of the mesh to be suspendedlj