Browse content similar to 05/08/2016. Check below for episodes and series from the same categories and more!
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Rio set to be the biggest money games in Olympic history - | :00:00. | :00:20. | |
despite that barrage of bad publicity. | :00:21. | :00:23. | |
We're going to hear from one of the country's best known bosses - | :00:24. | :00:27. | |
Plus - rock bottom rates - but what's next from | :00:28. | :00:31. | |
the Bank of England - as it battles to stave | :00:32. | :00:33. | |
It is Friday. We have the Friday feeling. | :00:34. | :00:51. | |
This is a bite-size snapshot of all in the world of business and money. | :00:52. | :00:58. | |
Lots going on. We start in Brazil, | :00:59. | :01:00. | |
where as you have been hearing, the Rio 2016 Olympic Games will open | :01:01. | :01:03. | |
in just a few hours' time. It's a big moment for the host | :01:04. | :01:06. | |
nation and of course the athletes - but also for the companies | :01:07. | :01:09. | |
which have spent vast sums sponsoring - buying media rights - | :01:10. | :01:12. | |
and advertising around the Games. In fact, by any measure, | :01:13. | :01:15. | |
Rio is set to be the biggest money Let's put it in some | :01:16. | :01:19. | |
context for you. Back in 2008, the Beijing Olympics | :01:20. | :01:25. | |
pulled in broadcast rights and corporate sponsorship worth | :01:26. | :01:28. | |
almost $5.5 billion. That figure was blown away four | :01:29. | :01:32. | |
years later by the London Games. London 2012 made | :01:33. | :01:35. | |
a total of $8 billion. Now, the final figures for Rio | :01:36. | :01:40. | |
2016 are not in yet, but it looks set to top $9.3 billion | :01:41. | :01:44. | |
in commercial rights - That's despite a barrage of negative | :01:45. | :01:47. | |
publicity, from the political and economic crisis in Brazil, | :01:48. | :01:54. | |
to the Zika virus outbreak, to the doping scandal overshadowing | :01:55. | :01:57. | |
so many sports. One of the companies investing | :01:58. | :02:03. | |
heavily in Rio 2016 is car It is a major sponsor | :02:04. | :02:06. | |
of the torch relay, the Games and Paralympic Games, | :02:07. | :02:11. | |
as well as various athletes - plus it is supplying | :02:12. | :02:13. | |
all the official cars. It's perhaps no surprise since CEO | :02:14. | :02:20. | |
Carlos Ghosn is Brazilian-born. And he said he has no regrets | :02:21. | :02:26. | |
about the millions invested in the Games, even though | :02:27. | :02:34. | |
the decision was made before Brazil The objective from the beginning was | :02:35. | :02:48. | |
to give more awareness to the Nissan brand, at a moment where we are | :02:49. | :02:52. | |
starting out offensive in the country and Latin America. The fact | :02:53. | :02:56. | |
we took this decision when the market was nearly 3.6 million cars a | :02:57. | :03:01. | |
year and today it is much nearer 2 million cars a year it changes | :03:02. | :03:05. | |
nothing. Awareness is the reason for which we are participating. To build | :03:06. | :03:09. | |
a much higher awareness about our product in a country which without | :03:10. | :03:14. | |
doubt will continue to be one of the major markets in the world, and | :03:15. | :03:20. | |
where awareness is still behind some of the top players. What are your | :03:21. | :03:25. | |
concerns about the global economy with the US slowdown and China as | :03:26. | :03:29. | |
well, and Brazil in recession? It will be a year of slow growth | :03:30. | :03:33. | |
globally. We are expecting it. It will not be a surprise. So, yes, the | :03:34. | :03:41. | |
US market is at a very healthy high level, China will continue to grow | :03:42. | :03:47. | |
at a lower rate, and the recovery in Europe will continue even though it | :03:48. | :03:52. | |
will be impacted by Brexit, without doubt, but it will not reverse the | :03:53. | :03:56. | |
fact that the economy will continue. We are thinking of 1% growth for the | :03:57. | :04:02. | |
global market for the car market next year than anything us. We are | :04:03. | :04:06. | |
ready and preparing for it. We're not worried. The big markets are at | :04:07. | :04:10. | |
a healthy level. Even though we can't count on very strong growth, | :04:11. | :04:19. | |
in 2017 or 2018. How to specs it and the falling sterling affect your | :04:20. | :04:24. | |
operations in the UK, especially the Sunderland plant? -- how does | :04:25. | :04:29. | |
Brexit. We can't talk about impact until we see the status of the UK. | :04:30. | :04:34. | |
The question of Sunderland, it is a European plant based in the UK. Most | :04:35. | :04:40. | |
of the production out of Sunderland is exported to Europe. So obviously | :04:41. | :04:46. | |
for us, the relationship which will prevail to in the UK and Europe is | :04:47. | :04:51. | |
very important. So the Fiji investment decisions will depend a | :04:52. | :04:58. | |
lot on yes, the UK is out of Europe, but what will be the new status? -- | :04:59. | :05:03. | |
future. You will see a period where most companies will be waiting to | :05:04. | :05:08. | |
see what will be the new status, and then they will be making their | :05:09. | :05:14. | |
decisions about investments. There you go, the boss of Nissan, Carlos | :05:15. | :05:15. | |
Ghosn. We are also talking | :05:16. | :05:18. | |
about the Bank of England. It has cut interest rates | :05:19. | :05:20. | |
to a new record low amid concern about a slowdown in the economy | :05:21. | :05:23. | |
following the vote to leave down from 0.5% - the first | :05:24. | :05:26. | |
time rates have been cut The decision is just one of a series | :05:27. | :05:33. | |
of what the bank called "exceptional Another of the Bank of England's | :05:34. | :05:39. | |
headline policies will see ?170 billion - that's | :05:40. | :05:45. | |
around $220 billion - pumped into the economy through | :05:46. | :05:49. | |
so-called quantitative easing. This is where a central bank creates | :05:50. | :05:52. | |
electronic money to pump into the economy | :05:53. | :05:55. | |
via commercial banks. The Bank of England also announced | :05:56. | :06:03. | |
the biggest ever cut to its growth forecasts for next year - | :06:04. | :06:06. | |
from 2.3% down to 0.8%. The Bank's governor, Mark Carney, | :06:07. | :06:13. | |
spoke to the BBC yesterday and explained how the measures | :06:14. | :06:21. | |
would help to manage the fallout What the bank has been doing and | :06:22. | :06:40. | |
what the NBC decided to do today is make that process easier and support | :06:41. | :06:45. | |
this economy. If we had not had acted, output would have been | :06:46. | :06:50. | |
bowler, unemployment would have been higher, and inflation would not have | :06:51. | :06:52. | |
gone back to targets that are sustainable. That is our mandate and | :06:53. | :06:57. | |
what we have to accomplish -- Boer War. We were compelled to act and | :06:58. | :07:02. | |
acted in a smart way, not just using one instrument. We used multiple | :07:03. | :07:06. | |
instruments in a way that word mutually reinforcing, and we are | :07:07. | :07:10. | |
confident we will get through the financial system to businesses and | :07:11. | :07:13. | |
households to make a real difference. Mark Carney, the boss of | :07:14. | :07:16. | |
the Bank of England. Bronwyn Curtis is from the Society | :07:17. | :07:18. | |
of Business Economists. She is also a member of the shadow | :07:19. | :07:20. | |
Monetary Policy Committee - a group of experts which meet | :07:21. | :07:23. | |
to monitor the actions Those other people who sit around | :07:24. | :07:33. | |
the table and make these decisions. Thank you for coming in. Interest | :07:34. | :07:39. | |
rate cut, not really surprising. But all of these other announcements, | :07:40. | :07:44. | |
hang on, they are throwing everything at this at the moment. | :07:45. | :07:48. | |
But this quantitative easing, we have seen it in the past and we have | :07:49. | :07:51. | |
seen it in many other countries where the central banks pump money, | :07:52. | :07:56. | |
electronic money, but every time they have done it, they say money is | :07:57. | :08:01. | |
supposed to get out in the economy and it ends up in the markets. It | :08:02. | :08:04. | |
doesn't really benefit the average Joe Bloggs. It does end up in the | :08:05. | :08:10. | |
markets, but this time it is a bit different. It is on this term | :08:11. | :08:22. | |
funding scheme, which is $100 billion of this quantitative easing, | :08:23. | :08:26. | |
and let them went close to their bank rate at the Bank of England | :08:27. | :08:31. | |
has. For the uninitiated, if it means to the commercial banks, they | :08:32. | :08:36. | |
then lent to the retail banks, which we use? But also to people for | :08:37. | :08:40. | |
mortgages, companies who are borrowing. So bending at that rate. | :08:41. | :08:45. | |
He called it smart stimulus. -- mending. He is trying to make sure | :08:46. | :08:51. | |
that bank margins are not squeeze too much and they can pass it | :08:52. | :08:55. | |
through at the level he wants. That means the supply of money at a low | :08:56. | :08:59. | |
level will be good. So that is new. But you still have to have people | :09:00. | :09:04. | |
who want to borrow. So demand, and is demand there? We have taken a big | :09:05. | :09:10. | |
hit from Brexit. A lot is about uncertainty. They spoke about how | :09:11. | :09:16. | |
the economy will be hit, but the uncertainty, are people really going | :09:17. | :09:20. | |
to borrow? Are companies really going to invest when they don't know | :09:21. | :09:24. | |
what is going to happen around Brexit? He has done as much as you | :09:25. | :09:27. | |
can in making sure there is enough money available. I don't think a lot | :09:28. | :09:32. | |
of this quantitative easing works. It works the first time, back in the | :09:33. | :09:38. | |
financial crisis, but this uncertainty will go on and on. A | :09:39. | :09:41. | |
marginal effect, but better than nothing. Talking of uncertainty, was | :09:42. | :09:50. | |
Mark Carney right in painting a dire picture, saying if we don't do this | :09:51. | :09:55. | |
now, we are going to have jobs lost. Is he right? Did he take the right | :09:56. | :10:00. | |
picture or not? He doesn't have a lot of. The data was very bad, | :10:01. | :10:09. | |
because we had to political uncertainty, we did not have a Prime | :10:10. | :10:13. | |
Minister, the opposition was in turmoil, and we had Brexit all at | :10:14. | :10:17. | |
once. We are probably going to improve from that. We will have to | :10:18. | :10:22. | |
see. I think he fell for their own credibility they had to do as much | :10:23. | :10:29. | |
as possible. -- felt. A 0.25% cut is not enough. Unfortunately there is | :10:30. | :10:36. | |
shutting him i.e. We don't have left much of the programme. Is there much | :10:37. | :10:40. | |
left in the box if things get worse? -- shouting in my ear. Not a lot. | :10:41. | :10:49. | |
Let me leave you with a couple of other stories. | :10:50. | :10:50. | |
New York State's financial regulator has requested a meeting | :10:51. | :10:53. | |
with Goldman Sachs about its fundraising for Malaysian sovereign | :10:54. | :10:55. | |
wealth fund 1MDB - according to anonymous sources cited | :10:56. | :10:57. | |
The Wall Street giant's work with 1MDB | :10:58. | :11:00. | |
government alleged that billions of dollars were diverted | :11:01. | :11:05. | |
for the personal use of 1MDB officials, | :11:06. | :11:08. | |
Goldman helped fundraise $6.5 billion in three bond sales in 2012 | :11:09. | :11:16. | |
and 2013 to invest in energy projects and real estate to boost | :11:17. | :11:21. | |
I don't know about that! Mature you the markets. I need new glasses. US | :11:22. | :11:49. | |
jobs numbers. Everybody waiting for that today. A very important number. | :11:50. | :11:55. | |
I will be back with James to look at some of the newspapers around the | :11:56. | :11:55. | |
world. Large private foster agencies have | :11:56. | :11:58. | |
been criticised for poaching foster carers by offering them up to three | :11:59. | :12:09. | |
thousand pounds to work for them The Association of Directors | :12:10. | :12:12. | |
of Children's Services says that some agencies then charge councils | :12:13. | :12:16. | |
almost double the amount | :12:17. | :12:20. |