Browse content similar to 13/09/2016. Check below for episodes and series from the same categories and more!
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eight years and faces arrest from police. I don't know what is going | :00:00. | :00:00. | |
on! Sally does... LAUGHTER. Mixed messages from the Fed | :00:00. | :00:15. | |
send global markets We'll decipher if there will be | :00:16. | :00:17. | |
a rate rise in the US next week. Ford tries to overtake its rivals | :00:18. | :00:31. | |
with their latest driverless The fearless Michelle | :00:32. | :00:35. | |
Fleury went for a spin. Has you could tell, that was not | :00:36. | :00:50. | |
Michelle at the wheel are she will, however, be driving a prototype. | :00:51. | :00:53. | |
Also in the programme: We'll be looking at why China's | :00:54. | :00:55. | |
infrastructure spend worth billions of dollars could be doing more | :00:56. | :00:58. | |
confusion at the top - a fog of uncertainty has descended | :00:59. | :01:07. | |
over the future of the world's largest economy with those pulling | :01:08. | :01:10. | |
the economic leavers now in open conflict. | :01:11. | :01:12. | |
In the last 24 hours an influential member of the board that sets US | :01:13. | :01:16. | |
interest rates has suggested a rate rise might damage the economy. | :01:17. | :01:19. | |
Her comments directly contradict several Fed officials who have | :01:20. | :01:21. | |
recently suggested the economic conditions justified | :01:22. | :01:23. | |
considering another increase in rates this month. | :01:24. | :01:25. | |
Speaking in Chicago, Lael Brainard said the US central | :01:26. | :01:27. | |
bank should avoid moves to "tighten policy pre-emptively." | :01:28. | :01:32. | |
This seemed to clash with Federal Reserve Bank | :01:33. | :01:34. | |
of Boston President Eric Rosengren comments on Friday. | :01:35. | :01:36. | |
He said "a reasonable case can be made" for raising rates sooner | :01:37. | :01:39. | |
And if you're wondering how much words matter, | :01:40. | :01:47. | |
just look at the last three trading days on the Dow, | :01:48. | :01:50. | |
the main stock market in the US reacted swiftly to those | :01:51. | :01:53. | |
Two of the key reasons why: Well, raising the cost of borrowing | :01:54. | :02:04. | |
in the US will mean higher debt repayments for many emerging market | :02:05. | :02:07. | |
governments and businesses around the world, as the amount owed | :02:08. | :02:10. | |
And with the prospect of higher interest rates in America, | :02:11. | :02:14. | |
this is attractive to international investors who are hungry for better | :02:15. | :02:17. | |
returns on their investment capital so money will be headed to the US | :02:18. | :02:25. | |
and away from the rest of the world. With me to discuss this | :02:26. | :02:28. | |
is Jeremy Stretch, head of currency strategy at CIBC World Markets. | :02:29. | :02:33. | |
Good morning, Jeremy. So, next week, will they or won't they? Well, there | :02:34. | :02:42. | |
are many reasons why they should raise rates, we have seen that over | :02:43. | :02:47. | |
the course of past months and, indeed, 12 months back in December | :02:48. | :02:52. | |
2015 we could have had this same debate arguing about whether they | :02:53. | :02:57. | |
should tighten rates. Janet Yellen found a reason not to, talking about | :02:58. | :03:01. | |
global decisions, and I suspect we will see something similar this time | :03:02. | :03:10. | |
around. I think the Fed will pass this time around and we will be | :03:11. | :03:14. | |
rather reminiscent of 2015 looking for a December rate rise. Do you | :03:15. | :03:18. | |
think the US election happening early November is one reason white | :03:19. | :03:25. | |
-- why they might put it back? It is possible, interest rates have been | :03:26. | :03:31. | |
incredibly politicised over recent months, or at least that has been | :03:32. | :03:34. | |
the presumption of politicisation. Donald Trump has been critical of | :03:35. | :03:37. | |
the Federal Reserve over the last couple of months, talking about | :03:38. | :03:43. | |
reasons why they have been reluctant to raise rates from a political | :03:44. | :03:46. | |
standpoint, which I don't think is true, though there have been | :03:47. | :03:50. | |
accusations. I don't think the Fed would like to bring themselves into | :03:51. | :03:53. | |
the middle of the political debate as well as finding reasons to hold | :03:54. | :03:57. | |
off for now. There is even more attention on what the Fed is doing | :03:58. | :04:01. | |
this month because of what was said last week by Mario Draghi and also | :04:02. | :04:06. | |
reports that the central bank of Japan is less likely to stimulate | :04:07. | :04:10. | |
more, so it is these three central banks and what they are doing, it is | :04:11. | :04:14. | |
all in focus right now, which is why markets are so sensitive. | :04:15. | :04:20. | |
Absolutely, going back to the chart they showed, it is the confluence of | :04:21. | :04:23. | |
these central banks coming together, so while we are fixated on what the | :04:24. | :04:29. | |
Federal Reserve will do, we have the Bank of Japan's reviewed on the same | :04:30. | :04:37. | |
day, and they have been injecting enormous amount of liquidity into | :04:38. | :04:41. | |
the markets, in the same way the ECB have been doing. The ECB didn't | :04:42. | :04:45. | |
enhance the programme on Thursday. That was a little bit of a surprise. | :04:46. | :04:53. | |
And indeed it was not discussed, the expansion, at that time, and has | :04:54. | :04:57. | |
provided uncertainty, which for financial markets is a reason why | :04:58. | :05:03. | |
investors are looking to pull back. Away from the holding positions into | :05:04. | :05:07. | |
the uncertain period. As a consequence, it is causing equity | :05:08. | :05:14. | |
markets to be destabilised. Thank you very much indeed, Jeremy. We | :05:15. | :05:19. | |
shall keep a close eye on the Fed and what it does next week, but for | :05:20. | :05:24. | |
now we will have a break from central bank action. | :05:25. | :05:26. | |
US auto giant Ford says you will be able to buy from them a self-driving | :05:27. | :05:30. | |
The company that bought to the world the first mass produced car now | :05:31. | :05:35. | |
wants to be seen again as a cutting edge tech company. | :05:36. | :05:38. | |
But Ford has a long way to go if it's to catch up with the likes | :05:39. | :05:42. | |
Michelle Fleury reports from Michigan where Ford | :05:43. | :05:45. | |
is testing its most advanced prototype. | :05:46. | :05:53. | |
I am Michelle, this is Andrew. I am also Andrew. That is easy. I and | :05:54. | :06:03. | |
your engineer. The car will drive autonomously. He won't be doing | :06:04. | :06:08. | |
anything. It will drive through this campus. It is not staged, it is a | :06:09. | :06:12. | |
10,000 person campus with people doing what they do and drivers doing | :06:13. | :06:17. | |
what they do. That is the level of capability we have right now. Fortt | :06:18. | :06:20. | |
is keen to prove it can do what Silicon Valley can. Uber is | :06:21. | :06:25. | |
launching a self driving taxi service in Pittsburgh any day. It | :06:26. | :06:31. | |
feels like being a passenger in an ordinary car. I can't really tell | :06:32. | :06:36. | |
the difference. It has been pretty unremarkable except when I peer over | :06:37. | :06:41. | |
Gus's shoulders and notice he doesn't have his hands on the wheel. | :06:42. | :06:46. | |
Ford has pledged there won't be a wheel or even gas and brake pedals | :06:47. | :06:51. | |
in 2021. And the state of those lives is why we are still stopped | :06:52. | :06:55. | |
right now, so we are waiting for them to go out. Light beams and | :06:56. | :07:00. | |
cameras are used to read the environment around the car. So, hang | :07:01. | :07:05. | |
on a second, there is a truck right up there. We are slowing down, and | :07:06. | :07:10. | |
there is a stop sign, so we are going to stop. You promise your foot | :07:11. | :07:14. | |
wasn't on the break? No. I wouldn't call it a wild ride but that is not | :07:15. | :07:19. | |
bad when you are talking about driverless cars on the road. The | :07:20. | :07:22. | |
question of safety has come up again when a driver was killed recently | :07:23. | :07:30. | |
using Tesla's autopilot feature. The problem is the technology is moving | :07:31. | :07:36. | |
faster than the laws. This Republican senator is behind the | :07:37. | :07:40. | |
push to make Michigan the first US state where it is legal to operate a | :07:41. | :07:44. | |
self driving car without a human being behind the wheel. Right now | :07:45. | :07:49. | |
our state doesn't allow automated vehicles on the road unless they are | :07:50. | :07:53. | |
being tested, so we have to change that component. Then there is cyber | :07:54. | :07:58. | |
security component, which is a very important part of it, just due to | :07:59. | :08:05. | |
the fact that if your home computer is hacked into while you are sitting | :08:06. | :08:09. | |
at a desk, if your car is hacked into driving 70 mph, that could be | :08:10. | :08:13. | |
catastrophic for not only you but for everybody around you. Here in | :08:14. | :08:18. | |
the home of America's car industry the hope is driverless car | :08:19. | :08:23. | |
technology will be as big as Henry Ford's creation of the assembly | :08:24. | :08:24. | |
line. China's government is spending more | :08:25. | :08:28. | |
but is it getting value for money? The Asian powerhouse spends more | :08:29. | :08:31. | |
on infrastructure each year than North America and | :08:32. | :08:33. | |
Western Europe combined. However a report from | :08:34. | :08:40. | |
Oxford University says more than half of that spending is not | :08:41. | :08:42. | |
generating economic value. Official figures out today show | :08:43. | :08:46. | |
Chinese government spending has risen by close to 13% in the first | :08:47. | :08:48. | |
eight months of this year. However revenues have only risen | :08:49. | :08:52. | |
by 6% over the same period. Research done by Oxford University's | :08:53. | :08:59. | |
Said Business School, says infrastructure cost overruns | :09:00. | :09:01. | |
have equalled nine point two trillion dollars, that's | :09:02. | :09:04. | |
approximately one-third of China's Rico Hizon is in our Asia Business | :09:05. | :09:05. | |
Hub. So, is China getting | :09:06. | :09:10. | |
enough bang for its buck? That is right. It seems they are not | :09:11. | :09:34. | |
getting maximum output from their infrastructure projects. One problem | :09:35. | :09:39. | |
is the mainland keeps building roads, railways and other | :09:40. | :09:43. | |
development projects but many of them are underutilised. Traffic use | :09:44. | :09:48. | |
of major road projects represent two extremes. Two thirds of roads have | :09:49. | :09:53. | |
low use while one third are congested. This hampers economic | :09:54. | :10:00. | |
growth. Unless China shifts to fewer quality infrastructure investments, | :10:01. | :10:05. | |
it is headed for an infrastructure led national and economic crisis. | :10:06. | :10:10. | |
Also we should take into account that road and rail projects are | :10:11. | :10:14. | |
built two years quicker compared to first world western countries, which | :10:15. | :10:17. | |
raises the issue of cost, safety and the environment. OK, thanks a lot. | :10:18. | :10:23. | |
That is World Business Report. I will see you soon. | :10:24. | :10:30. | |
Sex education classes should be compulsory for all primary school | :10:31. | :10:33. | |
pupils from the age of four, according to a group of MPs. | :10:34. | :10:36. | |
The Women and Equalities Committee believes starting lessons | :10:37. | :10:39. |