this is the business briefing. i'm sally bundock. full speed ahead! tesla surprises the markets with record revenues and a gung—ho production forecast, paving the way for profits in the next quarter. and the best pilots deserve the best equipment. buckle up for a trip to a school for test pilots. and on the financial markets trade worries are firmly back on the agenda with china and hong kong leading the declines. some electrifying results from us car maker tesla. the it delivered more of its model 3 cars in the most recent quarter, helping to boost revenues and setting it on course to be profitable in the next quarter. the company announced record revenue of $4 billion, but it's still operating at a loss. this didn't worry investors though, and here is why —

tesla says it will make over 6,000 model 3 cars a week from august, and between 50,000 and 55,000 in the third quarter. this will help prop up tesla's volatile stock price — here's a look at how it's been fairing. and worth noting — it's been the most bet against stock on wall street until now. in after hours trade wednesday the shares ended 9.4% higher. chrisjones, vp at canalys joins me now. see you. obviously you know this company well, but notjust because of yourjob, you lived in california and many tesla owners and drivers,

you have seen the company grow. yes. it has been an amazing ride they have been on for the last few years. the model 3 was announced in march 2016, they took orders for the car wrapped the time. they quickly got up wrapped the time. they quickly got up to 400,000 pre— orders of the vehicle. and they had to figure out how to build so many to the field are banned. what has changed? the last that results from tesla it was a turbulent time, there would be concerns that they were burning through cash and not able to deliver on their promises. they have had a tough time ramping up production. about a year ago in the third quarter of 2017, they delivered about 20 3000. now they are talking about 20 3000. now they are talking about 50,000. it has been a tough time for them to ramp up production. they have had to reconfigure their production lines. it is an automated incompetence process. they've had to reconfigure it. we believe they have cracked it and will deliver this amount in the next quarter?m

cracked it and will deliver this amount in the next quarter? it is looking good now. now they have consistently hit 5000 units per week for the model 3, plus other models. it is certainly on the right track for them. what about elon musk, the man at the helm of the company? he has managed to poor magic for such a long time, this is such a bizarre company that has not made a profit in sometime, its market cap was bigger than ford, it is making hardly any cars compared to ford and general motors, yet he seemed to have wall street in his hands. not so have wall street in his hands. not so much any more. it has been a tough time for the past year or so for him. he has a lot of different companies he is involved in. you wonder how he spreads his time and the attention that the three companies... is notjust his time but his manner. he does not shareece investors and investment bankers in

the same way that other ceos are good at —— does not talk to. the same way that other ceos are good at -- does not talk to. the play the game. he doesn't. it's very active on twitter. he responds directly to... people who criticise him... on twitter. are we going to talk about tesla making its first profit in the first quarter was i thatis profit in the first quarter was i that is what they are hoping. it is on the right track for the car production now. they are starting to offer test rise in the new vehicle. that is important because tesla drivers i know love their vehicles. word of mouth is important for them to spread the word. thank you so much were coming in. that is the latest on tesla. more on the website. the trump administration confirms it's now considering more than doubling the tariffs it plans to impose on $200 billion in chinese imports. beijing officials say they will retaliate if the united states takes further trade measures against them. let's go to our asia business hub where shara njit leyl is following the story. sharanjit, you and i were talking

about the rumours this time yesterday. the rb trump administration is saying and is poised to take further action. -- the trumpet ministration. that is right. this could further escalate tensions between the us and china, which as we know are already made in a trade war, both sides have already imposed tariffs on that $34 billion worth of goods. the us injuly published $200 billion worth of additional products to be taxed as early as september. that list names more than 6000 items, things like chemicals, textiles, consumer goods, ranging from baseball gloves to frozen fish fillets. essentially they are accusing china of intellectual copyright theft and they want to bring down that lofty trade deficit with china, which is the world's second largest economy after the us. but it is seen as part

ofa after the us. but it is seen as part of a broader tug—of—war between the two powerhouses for influence on the world stage. 0n two powerhouses for influence on the world stage. on monday we had mike pompeo announcing a plan to spend $113 million in asia, a move widely seen as $113 million in asia, a move widely seen as an $113 million in asia, a move widely seen as an attempt to try to counter china's growing influence in the region. thanks a lot, sharanjit. good to see you. time to look at other stories in business. facebook‘s chief security officer alex stamos has left the company to become a fellow at nearby stanford university. his departure had been expected following news in march that facebook was reorganising its security division. the bank of england is expected to raise interest rates for only the second time in a decade later today. economists and investors expect the monetary policy committee to increase rates from 0.5% to 0.75%. the us federal reserve on the other hand has kept interest rates unchanged for now. however, the central bank did say

it's on track to increase borrowing costs in september. the fed says economic growth is strong and the job market has continued to strengthen while inflation has remained near the central bank's 2% target. i would imagine mark carney is quite jealous of what the fed would say. when aerospace companies build new aircraft, or modify existing designs, they need to make sure they‘ re safe to fly. that's the job of test pilots. and to learn their trade, they need highly specialised aircraft — as our reporter theo leggett has been finding out. three, two, one. this is no ordinary helicopter. it is a highly specialised machine. like the one i am writing in, it is based on a

conventional model, and airbus. it has been heavily modified so it can be used by the next generation of crack aviators at britain's empire test pilot school. this cockpit is basically a classroom. it is where future generations of elite test pilot can learn notjust how to analyse how the aircraft lies, but the way its electronics work, because electronic systems are an increasingly important part of the aviation industry today. turning an ordinary helicopter into a high—tech training machine is not a simple process. the work is carried out here at airbus helicopters uk headquarters, were designers are used to making customers products. first of all, it is a single engine helicopter. it has the basic flying characteristics we need to teach the stu d e nts to characteristics we need to teach the students to assess. the chief flying instructor says the modified helicopter is the ideal tool for the job he has to do. with the systems we have installed for it, it allows us we have installed for it, it allows us to show the students how to test

those and make sure they are suitable for the front—line operation. the empire test pilot school is run by the private defence firm kinetic. the helicopter contract is part of a major programme to remove its ageing fleet, much of which has been in service for decades. in future, the school wants to attract more specialist commercial business, alongside its military work. specialist commercial business, alongside its military workm specialist commercial business, alongside its military work. it is about ensuring we meet the needs of the ministry of defence first and foremost, but also that we are able to grow and get a return on our investment. that predominantly lies in the european market for civil test pilots, not just in the european market for civil test pilots, notjust for aircraft manufacturers in europe, but some of the operators with special needs. the high school has existed since the second world war. but this is the second world war. but this is the first time it has been able to order aircraft that have been custom—built, allowing future generations of doctors pilots to perfect their skills in machines tailor—made for thejob. perfect their skills in machines tailor—made for the job. theo leggett, bbc news. let us look at market again. a

tricky session in asia. the nasdaq was boosted by apple shares going up. it closed up nearly half a percent higher in the us. as you can see, heavy declines in asia and higher at us tariffs on it us goods look increasingly likely. —— chinese goods. that fear factor has returned. what impact will it have on china and other economies in asia and how will china retaliate? these are commodities, of course, i will see you in just a moment. more on that story would have asked

you to get in touch with us about this morning. we're becoming increasingly addicted to our smartphones according to a new report by the communications regulator, 0fcom. the average person now checks their phone every 12 minutes and 40% look at it within five minutes of waking up. but the number of calls made on mobiles has fallen for the first time ever. our technology correspondent rory cellan—jones has more details. we are going to make some history together today. 2007, and steve jobs unveils apple's iphone. 2008 and the first android phones are unveiled. what has followed, according to 0fcom, is a decade where we have become increasingly dependent on our smartphones. we are using them in all sorts of ways throughout the day. three quarters of people questioned said they could not live without one. ten years ago we had many different devices, we had mp3 players to listen to music, satellite navigation systems to take us satellite navigation systems to take us around, today all of that is compact it into one device and now eight out of ten of us own a smart

phone and really spend our entire lives on a smartphone. ofcom's researchers at how addicted we are too smart phones. 40% of people check their phones within five minutes of waking up. the average person looks at the phone every 12 minutes and spent an average of two hours and 28 minutes a day it using it. but just how hours and 28 minutes a day it using it. butjust how to use them, where, and for how long is still a matter of debate. i think it has made my life better, but children's lives worse. definitely anyone my age would be pretty dependent on a device, whether they are walking around the city to find their way around the city to find their way around or to communicate with people. a few years ago i would have been sitting here are admiring the view and malam on my phone. so it is kind of swings and roundabouts, i suppose. one thing we are not doing so suppose. one thing we are not doing so much and our phones is talking. the number of mobile voice calls has fallen for the first time ever. rory cellan—jones, bbc news. you are with the briefing from bbc

news. the latest headlines: there have been international calls for calm in zimbabwe after soldiers opened fire on opposition supporters alleging fraud in monday's elections. three people were killed. the electoral commission has not yet announced a result in the presidential vote. the turkish government has strongly condemned the united states' imposition of sanctions on the country's justice and interior ministers. washington is concerned about the continued detention of an american christian pastor, andrew brunson, on terrorism charges. the governor of california, jerry brown, has blamed climate change for a rise in the number of wildfires devastating the state. he said an increase in severity predicted for the middle of the century was happening now. let's a look at some of their

stories in more detail. what is the media discussing? we have the front page of the independent, which is looking at zimbabwe. it says from ballot box to bloodshed, as we have mentioned, three people were killed, supporters of the opposition alliance clashed with security forces. business insider is looking ata forces. business insider is looking at a home office leak that claims the british prime minister is considering allowing the free movement of eu citizens at the uk border, if britain leaves the block without a deal. the financial times front page looks at google's return to china, a move it says would mean bowing to the censorship that prompted the compa ny‘s bowing to the censorship that prompted the company's withdrawal from d company eight years ago. bloomberg, the most read story is the world's richest man and the founder of amazon has had a little help from his parents, apparently, when he started out in the 1990s. the bank of mum and dad. they invested something like $250,000

into their son's fledgeling business. it has been disclosed for 20 years on, they could be worth something like $60 million. that is the share value. that is a return of 12,000,000%. good if you can get it. this is the bb sate website report. the 0fcom report that looks out the uk's addiction to smartphones, the number of voice calls me has dropped for the first time ever. we will discuss all of this. you have been in touch with us as well as far as that smart phone story is concerned. so let's begin. with me is alpesh patel from ceo praefinium partners. jeff bezos, did you invest in amazon? what a fool i