22/08/2016 World Business Report

Keeping the European project together -

Merkel, Hollande and Renzi meet to discuss their gameplan

and the reverberations following the UK's decision

And with the Rio Olympics over, is it worth it for the host cities.

And with the Rio Olympics over, is it worth it for the host cities?

We take a look at the legacy of the games in a few

Welcome to World Business Report, I'm Sally Bundock.

In a minute we'll take a look at the policies

of India's newly appointed Central Bank governor.

But first, the German Chancellor - French President and Prime Minister

of Italy are meeting today to discuss the future of Europe,

following Britain's decision to leave the Europe Union.

This is the second set of talks between the premiers

of the eurozone's 3 largest economies since Britain's shock vote

So what's at stake for Europe following Brexit?

The UK is the world's 5th largest economy, and one of the EU's biggest

contributors and until it formally leaves will keep paying

Last year the UK's net contribution was around $11 billion.

Germany's finance ministry has already hinted its contribution may

have to rise by $2.5 billion when Britain leaves.

If the UK-EU divorce proceedings become protracted and acrimonious,

economic growth for both sides will be affected.

Uncertainty is likely to have a negative impact

on investment decisions - from financial services

Here in the UK infrastructure spending has already declined

With me is Holger Schmieding, Chief Economist at Berenberg Bank.

Good morning. Good to see you. This meeting today on a beautiful island

off the coast of Naples, Italy is hosting- for Matteo Renzi it is very

important. It is important for Matteo Renzi to be seen to be a

leader moving Europe forward. He has to fight a referendum later this

year where his political future is at stake, it is about constitutional

reform. Any impression that Italy is really among the big powers of

Europe, deciding the future of the club, is important and also it is

nice to have the three discussing what is next. Stability in Italy is

very important to the European Union. Merkel and alarmed keen not

to see a crisis in Italy. -- Francois Hollande. Talking about a

better Europe, what are some of the issues they will discuss? The first

issue is do we need fundamental change? The answer to that is a bit

yes are not too much. Much of the EU is actually working and to get 27

countries to agree to fundamental change is very, very difficult so we

are likely to see, in the end, modest changes, basically

downgrading a few functions of the European Commission, strengthening

the European Union that we are not going to see dramatic changes which

would have to be ratified by all 27 countries which could be difficult.

In terms of the money matters, the economics, for Germany and France,

they have elections and also the Netherlands. Concern about how that

will go. What will they say in terms of spending and how the money is

spread around. Italy wants more spending as does France for Germany

does not. It is a more flexible interpretation of the existing rule

and we have seen that in action in the sense that Spain and Portugal

got away with missing the fiscal targets without having to pay a fine

and we would like to see more like that specially for countries like

Italy. It means implementing and it would likely allow him in practice

to run a bigger budget deficit, without them taking a decision

today, I think they will signal Europe is moving in the direction

that there is more flexibility within the existing route rather

than tearing up the rulebook and creating a new one. An impression

that Europe is steel on track. Brexit is much more a British issue.

After all, they are a large entity but the future needs to be discussed

after the Brexit. If we get any news out of that an official meeting with

those three key leaders will keep you informed.

A few hours ago, the lights went out on Brazil's iconic Maracana Stadium

as Rio de Janeiro passed on the Olympic flame to the next

Some experts estimate that the Olympics cost Brazilian

taxpayers over $15bn, but what's left for the city

now that the competition has come to an end?

BBC News has been all around the world to look at life

after the games - we start in Beijing.

The Beijing games may have been the most expensive ever hosted but there

is arguably little legacy to show for it. Some of the iconic

infrastructure remains that the birds best and the water cube- Ereck

question as to how well used they are. Nor has there been a boost to

sporting fields and open space. -- the question is. The real Agassi is

a symbolic one. The marking of the arrival on the global stage of a new

superpower. -- the real legacy. And some of that some of that lingers.

For use on it was London. Apart from the weather pretty much everything

else has become unrecognisable. Participation rates in athletics,

and especially for cycling, have soared since the games. The Olympic

Stadium has been transformed into the West Ham United football club in

Stratford has become a shopping mecca where tens of thousands of

homes are being built but some say it has come at a huge cost at a time

when public finances could least afford it. Residents being priced

out of the house markets. Many of the legacy projects that were

promised to Rio residents were not delivered. A cleaner environment and

better housing is for the poor but something has changed stop there are

better transport lanes and these new areas that is supposed to attract

future. Some complained that many opportunities went is. The

Paralympics kicks off on the seventh of September so of course there will

be much more from Rio. After months of speculation,

the Indian government has appointed this man - Urjit Patel -

to replace Raghuram Rajan as the next governor

of India's Central Bank. Well he is very well known

at the central bank. He is currently deputy

governor at the Reserve Bank He's an economist who

did his PhD at Yale UniversityAnd previously he has

worked with the International And like the man currently

in the job he has a reputation for being a warrior

on inflation - who believes in keeping rates high to keep

the cost of living under control. So what are some of the big issues

the new governor will face Lovely to see you. The guessing game

is over. Tell us more? The guessing game is over. I would not say it has

come as a surprise. He was in the race but when selection processes

were on the other big names, the chief Economist, the head of India's

largest banks. Many are seeing this as a signal that they want someone

who is known all his work within the central bank but also who will keep

his focus only on the central bank unlike his predecessor. He was known

to comment on issues outside the central bank. Urjit Patel has given

one speech and one interview. He shies away from speaking in public

and that might be something that went in his favour because the

government wants someone who will focus entirely on the job and

nothing else. That wraps up business report. See you then when we look at

the headlines. As ballot papers for the Labour

leadership contest are sent out from this morning -

the Mayor of London - Sadiq Khan -