On that later. And well be getting the inside track on on a business thats been milking big profits around the globe, were going to be speaking to the boss of arla, one of the worlds Biggest Dairy Companies. Also, as volvo calls time on the internal Combustion Engine, are you ready to give up your gas guzzler . Get in touch, just use the hashtag bbcbizlive. Hello and welcome to Business Live. Today, the Eu Commission will decide whether or not to give the green light to General Motors for the 2. 5bn sale of its European Operations. Gm is hoping to off load vauxhall and opel to the psa group, thats the french company, which owns peugeot and citroen. Its easy to see why General Motors wants to sell their European Operation, which is dominated by opel, has lost about 9. 1 billion since 2009. If successful, the deal would make psa the continents second biggest car maker, after volkswagen, and ahead of french rival, renault. Opel employs 38,000 people across europe, and its feared the sale could put thousands of those jobs under threat, with workers in the uk and germany considered to be most at risk. With me is ozgur tohumcu, Chief Executive of Tantalum Corporation who specialise in analysing automotive data. Ozgur, thank you so much forjoining us ozgur, thank you so much forjoining us in the studio. Do you think this deal will go ahead . Us in the studio. Do you think this deal will go ahead . |j us in the studio. Do you think this deal will go ahead . I think it will go ahead, because if you look at all the data and the moneyjust presented, it will be the second largest auto maker in europe. I dont necessarily think it will be a moniker listed position for the new company, so it will be cleared in my opinion a monopoly. Company, so it will be cleared in my opinion a monopoly. Given that gm have lost 9. 1 billion through opal, why do psa want to buy the company . To your point, the European Operation for gm has not made a profit since 1999, and psa once it probably for two reasons, one is that you will have access to the second largest market in europe, which is the uk, and then it allows them to distribute their cars across a larger scale. Will they use it to get out of europe at all, because psa is notoriously european continent based . Psa is notoriously european continent based . Will they psa is notoriously european continent based . Will they go to china, export to the states, anything like that . Towards emerging markets may be, i doubt towards the us because psa tried to enter the American Market for many years and has not been successful, but ultimately i think it is a play for the european market. There is concern this merger could bring job cuts for workers. There must be a lot of overlaps. There has been a lot of overlaps. There has been a lot of overlaps. There has been a lot of good communication between gm and the psa group, opel and vauxhall, as far as i can look at the media following the press releases, the german Work Councillors and the uk unions were given a lot of assurances about now job cuts, but history says in the long term if you want to achieve the types of savings they are looking for, you have to do some reductions. What is interesting about the timing of this, the timing in the development of Holkar Industry is that we all know in ten years time the car industry will completely different from whatever it is like at the moment. So how does this move really play the hoff car injures three. The Holkar Industry. Really play the hoff car injures three. The Holkar Industry. Yes, some of the emerging trends. You highlighted one of them around a electric vehicles, you have the drive towards autonomous vehicles. There is not much talk about how the new entity will be embracing these new entity will be embracing these new trends. So it is all Up In The Air . For addressing these trends, think it is a lot in the air and we have to realise all of these companies to be successful in the long term, they have to embrace of these big shifts in the car industry. 0k, thank you very much for your time. Lets take a look at some of the other stories making the news. Volvo has announced that it is the first traditional car maker to shift to Pure Electric and hybrid production signalling the end of the internal Combustion Engine. Every model made from 2019 onwards will have an electric motor. The company said it will also offer hybrid options on every model. London remains europes number one hub for technology investment, despite brexit. The mayor of londons agency, london partners, say that in the first half of 2017, private Equity Investment in the capitals tech sector totalled a record 5. 8bn. During the same period, berlin was the next most popular city for technology investment. Emirates has said the cabin ban on laptops no longer applies on its flights to the united states. In march, the us banned Cabin Laptops and other large Electronic Devices to and from eight mostly muslim nations, fearing bombs may be concealed in them. Just a quick look at this story Coming Out Of India on our live page, posted by simon atkinson, saying snapped deal rejects flip ca rd saying snapped deal rejects flip card offer. This was a long awaited merger, indias two biggest home grown online retailers. It looks like talks have hit the rocks. Snapped deal rejected a takeover. Amazon is making big inroads into india so it is thought that negotiations might get back on track. Nobody has said anything officially yet on that one. Nahendra modi is in israel on the first ever official visit by an indian pm. Sameer hashmi is in mumbai whats on the agenda . A lot, if it is the first visit ever. Thats right, it is a significant and historic trip, the first indian Prime Minister to visit israel in 70 years, since india got independence. A lot is on the menu, especially deals, i want to talk about the fence first, that is the big area where deals are expected. India is israels biggest market for arms india is israels biggest market for arms want to talk about defence first. India is expected to order 8000 spike anti tank missiles, which would cost about 500 million. That deal could be signed on this trip. India could also signed mouss for buying more weapons in the future. Last year india signed deals worth 2 billion alone when it comes to defence. Israel and india space agencies could sign a deal where they could collaborate on some projects, and israel could look at buying or using India Space Research organisations lunches to launch its own satellites. In addition to that, water and agriculture are the other two sectors where deals are expected to be announced. So yes, multi billion dollars of deals could be announced at the end of this trip and we are expected to hear something by this evening. Good to hear from you, thank you. Something by this evening. Good to hearfrom you, thank you. A quick look at markets. Completely unfazed, then ok, by the Missile Tests in north korea. All of the markets a little bit of looking reasonably healthy. On the european markets, this is where they have started. The Ftse Hovering around 73. 50, 73. 60. Read tax is down a touch. Remember, later in the week we have the jobs figures coming out of the us. We are slightly holding our breath for that but we would talk about that a bit ina but we would talk about that a bit in a second. Meanwhile, looking ahead to what is going on in the us later today, remember we had a holiday yesterday. People will be rubbing their eyes as they get back to business on wednesday after the july four holiday. Markets and businesses were closed in observance, so wednesday will really be back at it for most people. The federal reserve, americas central bank, will release the minutes from their last Committee Meeting back injune. At that meeting, they decided to raise interest rates, and it was the fourth time they have done so since the end of the recession. The fed also revealed plans to reduce its monster sized Bond Portfolio but during the financial crisis. Bought during the financial crisis. The minutes will be interesting because Policy Members have expressed concerns about inflation, that it expressed concerns about inflation, thatitis expressed concerns about inflation, that it is quite tepid, so investors will be looking to see if any of that anxiety might put the brakes on further increases to interest rates. Joining us is mike amey, Managing Director and Portfolio Manager at Investment Management firm, pimco. We will start with the asian markets, something you might have expected to see a big reaction on the markets with a north Korean Missile test, but it hasnt really happened. If you look back to the last six to nine months, one of the things we were worried about with a change in the us presidency was some more aggressive foreign policy, and potentially that could create some volatility is in the markets. You have had all of these nuclear tests, these ballistic tests, rather, and a very muted response, effectively just moving on. Because theyjust anything it is going to come to anything, for. . Anything it is going to come to anything, for. . I think anything it is going to come to anything, for. . I think there is no clarity. I thought markets hate uncertainty . But nothing has changed. We have seen this before, one way 01 changed. We have seen this before, one way or another. I do think it is quite interesting that the Markets Arejust quite interesting that the markets are just not interested, which is potentially a little bit complacent, frankly. I have written down in my notes here, missiles and money. The second question is about money, world pay, this great transaction processor. People are chasing it. It will go for a lot of money. Worldpay isa will go for a lot of money. Worldpay is a transaction system, when you pay through your Mobile Phone Banking App or through contactless, these are the people who do the transactions, and they are doing very well at it. The company has been valued at eight to nine ilion pounds. It rose by £2 billion yesterday alone. Which ironically is what rbs sold at four in 2010. Poor rbs. A tough one to look back on. U nfortu nately rbs. A tough one to look back on. Unfortunately the time they had to sell it, they had no choice was that rbs a British State owned bank that had to be bailed out in 2008 and then had to sell off its assets, and this was one of them. Enda yes, sold the two billion and now it is worth eight to nine. We will be talking about bravo getting rid of the internal Combustion Engine, do you have a hybrid car . We do have an electric car actually. Head of the curve, Iam Electric Car actually. Head of the curve, i am still on a diesel. So am i. Still to come, we will be getting the inside track on a business that has been milking big profits around the globe. The ceo of arla will be joining us. You are with Business Live, from bbc news. Food prices at the supermarket are continuing to rise, according to the latest Shop Price Index from the british retail consortium. Fresh food was up 1. 4 , ambient food up 1. 5 over prices were down 0. 3 in june over prices were down 0. 3 injune helped by non Food Products falling 1. 4 in price. Rachel lund is head of Retail Insight analytics at the british retail consortium. I suppose what surprises me about these figures is in some respects of them are still going down, even though we have got inflation at 2. 996. Though we have got inflation at 2. 9 . You are though we have got inflation at 2. 996. You are absolutely right. Year on year, some of these prices are going down, although what we have seen the last six months as they are edging up, it isjust have seen the last six months as they are edging up, it is just that at the back end of last year there we re at the back end of last year there were some big falls in prices, so quite a lot of ground to recover, particularly in non food prices. Quite a lot of ground to recover, particularly in nonfood prices. So what is actually reversing the sort of devolutionary trend in food prices . Is it to do with the weaker pound or what . It has a big part to play. The currency has fell 12 since the referendum last year, which has a big impact on input costs, but also to monitor prices as well first we have been through a period of low and falling commodity prices, which has reversed over the past year, so we have seen some big gains in underlying commodity prices. Looking forward, where do you think prices will go in the supermarkets . Prices will continue to head upwards. We have probably seen the lions share of increases in food prices, they will almost certainly had up a little bit but we have still got a little bit more to come, particularly in the non food area. We expect to see the Shop Price Index, which we report on, heading to inflationary territory in the next few months. What you think is the major factor in the moment in terms of determining where prices go . I think it very much is the currency movement. That takes some time to feed through, because of Hedging Contracts and also because of stock cycles as well, and we havent seen all of those impacts play out. Thank you very much for joining us. We will look at another food related item on our live page. Food and cars and missiles today, isnt it . Do you do your Grocery Shopping online . Sometimes but very rarely. What do you think the average weekly ocado costs . 50 quid. £108 and that has gone down. More details on that on our live page. Youre watching Business Live our top story the Eu Commission will decide today whether or not to give the green light to General Motors sale of its European Vauxhall and opel to the psa group. A quick look at how markets are faring. We have moved upwards. A little bit undecided, the ft se up one quarter ofa undecided, the ft se up one quarter of a percent. Now lets get the inside track on the big business of International Dairy farming. Our next guest, arla foods, is one of the worlds Biggest Dairy Companies thats been going since the 1880s and now turns over in excess of 10bn. The brand does not have an enormous profile. Based in denmark, arla is an International Farming co operative. Its major brands include lurpak butter and castello cheese. Peder tuborgh is the Chief Executive of arla. Welcome to the studio. The company has a long and deepest to read. Telus when it started, and how it is led by cooperatives . The company is much older than us. Since the 1880s. We are owned by farmers in seven different countries. Including 2500 farmers in the uk. We have a big base of farmers that own the company this because it is owned by the farmers, what difference does that make . Why are you different from an ordinary milk company . Were different, every penny we make our profits go right back to the farmers. I have employed by farmers to make sure the milk price is as high as it can be in any given situation. Lets talk about the milk price. About one year ago in the headlines in the uk. Unsustainable, farmers getting less than it was costing them to produce it. Where is it now . We have been through a recession, global recession, millions of farmers can echo that. It has recovered. We are on an u pwa rd it has recovered. We are on an upward slope. We heard from your previous interview there is inflation, but nothing to do with the pound, it is a global thing. Inflation, but nothing to do with the pound, it is a globalthing. Do your farmers the pound, it is a globalthing. Do yourfarmers make the pound, it is a globalthing. Do your farmers make more the pound, it is a globalthing. Do yourfarmers make more from their milk than other farmers . We strive to be ina milk than other farmers . We strive to be in a position. That is not a yes. At the moment yes, but you can find times when we are just average. Why is it so difficult to get a high price for milk, it is such a natural food, something we will need. The worlds population is growing. Why is the milk price so volatile . M worlds population is growing. Why is the milk price so volatile . It is wallace a re is the milk price so volatile . It is wallace are because of the supply side. Farmers all over the world react to milk prices. When it is down this stop producing. Which they have done in the last year. Then there is a lack of milk, guess what, but very short at christmas time. We have a desperate need for butter. By your christmas but now. Where will milk come from in the future . The Big Mass Intensive Farms in the huge acres of them. Or will it come from organic food and farms . We are the worlds biggest producer of organics food. 1 billion litres of milk. Our organic farmers are amongst the biggest one. It is having bigger farms, that is a trend for 125 yea rs, farms, that is a trend for 125 years, but doing it in a sustainable way. That is why we are unique, doing it without farmers, to make sure as they become more efficient they are doing it in a sustainable way. What new markets are opening 7 way. What new markets are opening up . More sales in china . Yes certainly, we have partnerships and co owner ships in china. Im very focused on africa and sub sahara, we have open the facility in nigeria. What concerns do have, compared to the uk . It is new consumption. Plays out ina the uk . It is new consumption. Plays out in a different way. The chinese do not eat a lot of cheesier. How that Cheese Market will play up is a wonder. What is your contribution to Greenhouse Gas . Your Methane Production is massive. Actually a serious problem. It is, that is how the carriers. A force of nature. Well, you can do a lot of things to research, how you feed the cows. We have great programmes around. On the supply side, we have the biggest Fresh Milk Dairy outside london, carbon neutral. 8096. That is how youre going to feed an enormous market coming in china. Increasingly using dairy products, which 20 years ago they did not. Still the per capita consumption is much lower than europe. That will drive the excitement in the future of the dairy industry. Thank you so much for coming in. In a moment well take a look through the business pages but first heres a quick reminder of how to get in touch with us. The Business Live pages where you can stay ahead of all the days breaking Business News. We keep you up breaking Business News. We keep you up to the latest details with insight and analysis from the bbcs Tea M Insight and analysis from the bbcs team of editors right around the world. We want to hear from you, team of editors right around the world. We want to hearfrom you, get involved on the bbc Business Live page. We arent twitter. And you can find us on facebook. We are on. What other Business Stories has the media been taking an interest in . Joining us again is mike amey, Managing Director and Portfolio Manager at pimco. We will start with his volvo story. Explain what this is about. The end of the Combustion Engine . Volvo announcing that by 2019 all of their cars, they will not have a Combustion Engine in any car from 2019 onwards. The first classic car company. They will have an option of combustion in the highbury. Name one is developing in internal Combustion Engine now, he would . You have the transition going on. The key question for the car industry, where the focus is. Whether the incumbents will be the dominant force, or the newer companies coming through. Volvo trying to be one of the newer companies, making the move early. You are a convert . We have an electric car. It is great. Really enjoyed it. What about the range . About to edge and 50,200 six miles. What happens if you want to go 500 miles. We have a diesel car. We thought that when we were told the authority by diesel cars this would you give up your gas guzzler . Andy says electric cars are not the future. Hydrogen fuel cells will be the only way forward. Wolfgang says he would go for it for the right place. Jim says why have a car when you can have a new uber. Story in the us about people employed in carp production going down. What mr trump promised, to keep Industries Like this employing people. There is a question as to whether the demand is not there. Everyone has their new car. There are some issues there. The workforces down a of percent. Of course the us is supposed to be one of the stronger economies. Couple of warning signs we should all be aware of. If there is a slowdown in the car industry, does that mean we will get the broader slowdown in the consumer sector. A story about the green day concert due to take place in scotland, cancelled at the last minute. A Staff Turning up to do a 12 hour shift did not get paid. You have an inside track. Im sad for many reasons. I have an inside track. Im sad for many reasons. I was have an inside track. Im sad for many reasons. I was lucky enough, they are touring europe, i was lucky enough to go to the london gig on saturday. We might have a photo of that. Team photo. That is a lions topped. People working at the gig, 200 people not paid for this turning up to do the 12 hour shift. Zero hours contract, the gig was cancelled, they got nothing. A good example of how tough it is if you are on those contracts. What can you do about that . Any legislation . Everybody would love to bring in laws and regulations . You could say there has to bea regulations . You could say there has to be a role if you are there, this was half an hour before the thing was half an hour before the thing was supposed to start, one thing you could say, if you are there x hours beforehand. People would pay for childcare. They have to get there and get back. The workers can dictate the terms of the contract. You can start to turn things around. Let us know what gave you are going to next. All we have time for an business. More Business News through the day on the bbc website. We will see a few contrasts in the weather across the uk in the next few days. For many parts of england and wales it will turn very warm, if not hot. Also pretty humid. Particularly across southern areas. Further north, more clout this morning. Fresher conditions. Going to stay quite cooler press north east scotland, northern england. Some drizzle into the afternoon. Much of that will tend to disappear. North western scotland, the south west, some sunny spells. Sunny spells and Northern Ireland. The North Eastern corner of england, rain, cloudy and cool. Away from that, lengthy spells of sunshine as we going into the afternoon, temperatures starting to rise quite quickly. Showers in east anglia later on, for most of us staying dry. The temperature is the biggest thing really. Northern areas of its fresher, 14 7d thing really. Northern areas of its fresher, 14 7d 111 17. Any surfer could see up to 20 degrees. Some cloud into the north of england. Into the early hours of thursday morning, we have that heat, humidity, low pressure moving north, bringing some thunderstorms. Thunderstorms will be affecting central and southern internet. South east through the morning. Few of those affecting the midlands. A key thunderstorms into northern parts of england. Across scotland and Northern Ireland a bit more cloud and rain moving in here. Another hot and humid day across parts of england and wales. Temperatures in scotland and Northern Ireland rising attacks. Friday, hot weather expected for parts of england and wales. 22 29d. Showers across england and scotland. The Weather Front gradually spreading southwards. As we go through saturday. Fresh air following on behind that. During saturday, hot in the south east. Elsewhere turning fresher, by Sunday Temperatures down, even in london, to about 23 degrees. More details available on the website. For now, goodbye