:00:00. > :00:07.This is Business Live from BBC News with Ben Thompson
:00:08. > :00:11.The European Central Bank is set to give its first policy decision
:00:12. > :00:13.after Britain took the decision to leave the European Union.
:00:14. > :00:16.Markets are awaiting any news to changes to the ECB's
:00:17. > :00:18.quantitative easing progamme- as reports suggest Japan is about to
:00:19. > :00:57.The US Department of Justice alleges that
:00:58. > :00:59.$1 billion has been "misappropriated" from the Malaysian
:01:00. > :01:01.government fund founded by the country's Prime Minister.
:01:02. > :01:03.The DOJ claims that stolen money has been used to help fund
:01:04. > :01:09.the Hollywood blockbuster The Wolf of Wall Street.
:01:10. > :01:18.We are not making that up and that is what the markets are doing.
:01:19. > :01:20.Also in the programme - riding the currency markets.
:01:21. > :01:23.We'll get the Inside Track on how businesses cope with big swings
:01:24. > :01:33.And the world officially has gone mad as Pokemon fever sweeps the
:01:34. > :01:36.globe. A software programmer has combined an app with dating dating.
:01:37. > :01:43.We want to know which apps you would like to see crated.
:01:44. > :01:55.-- created. There are unnamed presenters at the
:01:56. > :01:58.BBC who have caught Pokemon in this studio. We say no more.
:01:59. > :02:02.We start today in Europe - because the European Central Bank
:02:03. > :02:04.lays out its latest policy action later -
:02:05. > :02:07.the first meeting since the UK voted to leave the EU.
:02:08. > :02:09.So what's weighing on the mind of the ECB?
:02:10. > :02:12.Well, as well as Brexit, the collapse in oil prices saw
:02:13. > :02:14.the Eurozone slip into deflation in April and May.The ECB's job
:02:15. > :02:17.is to maintain price stability - and that means preventing both
:02:18. > :02:19.inflation and deflation - and stopping either gaining
:02:20. > :02:26.In recent weeks, political uncertainty - especially surrounding
:02:27. > :02:29.Brexit - has put a squeeze on bank lending as businesses
:02:30. > :02:31.and individuals hold off from taking decisions on investment
:02:32. > :02:39.In March, the ECB launched a landmark stimulus package
:02:40. > :02:45.It has an aggressive bond-buying scheme, but it can only buy certain
:02:46. > :02:48.types of bonds and now some economists suggest those constraints
:02:49. > :02:56.are tying the hands of the central bank.
:02:57. > :03:02.With me now is Kallum Pickering, senior economist at Berenberg Bank.
:03:03. > :03:07.What Ben was saying is giving us an idea of the problems injected into
:03:08. > :03:14.the eurozone economy, as a result of that what state is that economy in
:03:15. > :03:19.at the moment? Eurozone economy has been growing at modest rates.
:03:20. > :03:23.Nothing vigorous since 2012 but it has been growing at a stable base.
:03:24. > :03:27.Balance sheets are improving and there are employment gains we have
:03:28. > :03:31.enjoyed. You say generally growing but within that average growth,
:03:32. > :03:35.there are some real basket case, Greece and Italy which have not
:03:36. > :03:40.grown at all. That is right. France and Italy have real issues with
:03:41. > :03:43.their labour market, they need reform to help increase employment
:03:44. > :03:47.but Germany has been grow, unemployment is low. Spain and
:03:48. > :03:51.Ireland the two basket cases during the crisis year have been having the
:03:52. > :03:56.strongest rates of growth. OK, so given that situation, what does the
:03:57. > :04:00.ECB do now? What it needs to do is off set the confidence shock that
:04:01. > :04:04.has happened since Brexit. It needs to preserve the positive trends.
:04:05. > :04:08.Just pick you up on that, the confidence shock from Brexit, how
:04:09. > :04:15.big has that been in Europe itself? The eurozone? We only have a few
:04:16. > :04:19.breadcrumbs of data so far. The index for the eurozone fell earlier
:04:20. > :04:23.this week to the lowest level since 2012, but these sentiments can often
:04:24. > :04:26.overreact to what is happening in the real economy, so we will
:04:27. > :04:32.probably see a dent to growth in the second half of the year but I am not
:04:33. > :04:35.sure, given the existing aggressive stimulus the ECB will ratchet up its
:04:36. > :04:41.programme. Go back to what it can do. You think it hasn't got enough
:04:42. > :04:46.data do do anything but it can say things that will make a difference
:04:47. > :04:49.It, it can. They Couch their phrases when they say OK this is the way we
:04:50. > :04:52.see the economy, there are some risks to inflation, remember all
:04:53. > :05:00.central banks need to immediate a target. The ECB's is 2%. If they say
:05:01. > :05:05.we won't meet our target, that send a signal to financial markets they
:05:06. > :05:09.could increase or extend its monastery stimulus. And Mario Draghi
:05:10. > :05:13.will say something about European Governments doing more to help out
:05:14. > :05:17.the heavy lifting that the central bank has been doing all these years?
:05:18. > :05:20.He is right to do so central banks cannot increase the size of the
:05:21. > :05:26.engine in an economy. They can only provide the fuel, so it is the
:05:27. > :05:29.reforms in the labour markets fiscal policy in the surplus countries,
:05:30. > :05:32.that will raise the rate of growth in the eurozone.
:05:33. > :05:35.Lufthansa has cut its full-year profit target after a big fall
:05:36. > :05:38.Germany's biggest airline blamed "terrorist attacks in Europe"
:05:39. > :05:40.and "greater political and economic uncertainty".
:05:41. > :05:42.British Airways owner IAG and Easyjet have also issued profits
:05:43. > :05:53.Shares in online retailer eBay jumped 6.5% in after hours trading
:05:54. > :05:54.after the company reported better-than-expected
:05:55. > :06:03.They were up 5.7% compared to the year before.
:06:04. > :06:06.The online retailer also raised sales forecasts for the year ahead
:06:07. > :06:13.Elon Musk has unveiled his "master plan" for the future of Tesla.
:06:14. > :06:16.He said the electric car maker is working on several new vehicles,
:06:17. > :06:18.including heavy trucks and buses that could be launched
:06:19. > :06:22.Musk also used the speech to defend the company's autopilot system,
:06:23. > :06:24.after an autonomous car crashed earlier this year,
:06:25. > :06:41.The online retailer also raised sales forecasts for the year ahead
:06:42. > :06:50.Jet jet's cost which have gone up as a result of the falling pound, the
:06:51. > :06:56.investigation into sports direct but there is one other story I
:06:57. > :07:03.desperately wanted to get hold of. Commercial property. I can't find.
:07:04. > :07:07.Standard Chartered. I have got it. They are all linked, this is the
:07:08. > :07:13.first time we have heard about this, linked to this probe going into one
:07:14. > :07:19.MDB, this fund in Malaysia, which has been accused by the US yautsties
:07:20. > :07:23.of money-laundering, or at least Simoning off money to pay for
:07:24. > :07:28.movies. It is interesting and we will
:07:29. > :07:41.Let's head to Asia now where the US Justice Department has launched
:07:42. > :07:43.a billion dollar lawsuit as part of its investigation
:07:44. > :07:47.The fund was set up and overseen by the country's Prime Minister.
:07:48. > :07:49.But, the US claims money from the fund was misused -
:07:50. > :07:51.even though the Prime Minister is not directly
:07:52. > :07:56.Our Asia business correspondent Karishma Vaswani has the details -
:07:57. > :09:19.Yes, MDB. The to help develop Malaysia 's infrastructure. The
:09:20. > :09:21.The heat is sticking round in the south-east,
:09:22. > :09:22.but elsewhere it is a
:09:23. > :09:50.We could have that insight into their thoughts life after Brexit but
:09:51. > :09:55.it does mean investors remain cautious. It was slightly better
:09:56. > :09:58.yesterday, thanks to good corporate results, so that is the state of
:09:59. > :10:02.play so far in Europe, that is how markets are looking, we will talk
:10:03. > :10:23.about that more in a moment. Let us head to New York.
:10:24. > :10:30.The coffee giant is focussed on more lunch offers, to get more people
:10:31. > :10:34.through its doors, and low borrowing costs have made it cheaper to buy a
:10:35. > :10:39.car, but how much has that helped General Motors? We should find out
:10:40. > :10:43.when it reports second quarter earnings, strong demand for trucks
:10:44. > :10:51.and SUVs are expected to drive sales at home. With other companies also
:10:52. > :10:54.scheduled to turn in their accounts investors hope the message is bun
:10:55. > :10:57.that suggests the US consumer is in good shape.
:10:58. > :11:00.That was Michelle in New York. Joining us is Bronwyn Curtis,
:11:01. > :11:02.an independent economist and governor at the London School
:11:03. > :11:10.of Economics. What are the markets telling us
:11:11. > :11:14.about post Brexit Britain? They are not really telling us anything at
:11:15. > :11:18.all. The surprising thing we have had Turkey, we have had all sorts
:11:19. > :11:22.of, every time get a hit you expect the markets to go down and it is not
:11:23. > :11:27.happening, in fact, they are going up, and I think they are just
:11:28. > :11:34.waiting, they have had so many hits they have become blase. You said
:11:35. > :11:42.they are going up. Looking at the UK market it readjusted. The pound went
:11:43. > :11:45.down, shares went up, we readjusted. Certainly in the UK, that is true,
:11:46. > :11:51.they just readjusted prices because if you look at the smaller companies
:11:52. > :11:54.in the UK, they haven't really gone up, but elsewhere, you know, they
:11:55. > :12:00.have done pretty well. One indication we might get tomorrow is
:12:01. > :12:05.the market, the flash data, we get it for the UK and the eurozone, that
:12:06. > :12:08.will give us an early indication of what is happening in the real
:12:09. > :12:12.economy. That is the important thing isn't it. In the real world what is
:12:13. > :12:16.happening, away from the market, away from the numbers. Numbers. This
:12:17. > :12:22.will be the first time we have had any real world data. This is an
:12:23. > :12:26.early flash PMI for the UK. It has been especially early, that will
:12:27. > :12:30.give us a good indication of well, the first indication of really what
:12:31. > :12:34.is happening to companies and PMIs are about the expectations of
:12:35. > :12:37.purchasing managers in companies, and we expect that you know, they
:12:38. > :12:40.will have put their investment on hold, they will put their hiring on
:12:41. > :12:45.hold and so on, we don't think it will be a good number.
:12:46. > :12:48.Nice to see you. Briton win will be back to talk us through some of the
:12:49. > :12:52.Selling sterling or ditching dollars?
:12:53. > :12:54.We get the inside track of life on the currency markets.
:12:55. > :12:57.As the Uk's vote to leave the European Union sent shockwaves
:12:58. > :12:59.through the foreign exchange markets, we'll assess what it
:13:00. > :13:02.means in the long term - and why a fall in the value
:13:03. > :13:05.of the pound is good news - and bad news - for investors.
:13:06. > :13:07.Stay with us, you're watching Business
:13:08. > :13:15.Now - one of the first casualties of the UK's vote to leave the EU
:13:16. > :13:18.A number of funds suspended operations, as investors
:13:19. > :13:21.Well, a new report by surveyors across the UK shows investment
:13:22. > :13:24.demand is falling and the market could be taking
:13:25. > :13:29.But does that stack up with evidence on the ground?
:13:30. > :13:32.Just this week Wells Fargo struck a ?300m deal to buy new European
:13:33. > :13:34.headquarters in London, while China's largest property
:13:35. > :13:37.developer has been given the go ahead for a hugely ambitious project
:13:38. > :13:50.Theo Leggett is in our Business Newsroom.
:13:51. > :13:57.is the question, what is going on? Who do believe the the surveyors on
:13:58. > :14:01.the data on the ground? You have to drish between individual property
:14:02. > :14:06.deals and generalised sentiment. What we have seen with the Wells
:14:07. > :14:10.Fargo deal is a single company deciding it has extensive business
:14:11. > :14:16.interests in the UK and it is in its own interests to set up its European
:14:17. > :14:21.headquarters here. Likewise with the investment by a Chinese firm, they
:14:22. > :14:23.are coming in to invest in real estate in the London, market because
:14:24. > :14:27.they think it's a good deal for them. With the pound at its current
:14:28. > :14:33.level they may think they are getting good value. The broader
:14:34. > :14:38.picture is that sentiment across the country is fall, this is a survey
:14:39. > :14:42.that is carried out according to interviews with several hundred
:14:43. > :14:45.chartered surveyia yours and they are reporting that interest in
:14:46. > :14:48.future investment in the London property market is declining. Also
:14:49. > :14:53.across the rest of the country, it is falling but the biggest effects
:14:54. > :14:56.are in London. I do think you have to distinguish between those
:14:57. > :15:00.individual deals, and the situation across the country, where surveyors
:15:01. > :15:03.are being asked not only what is happening but their own opinions,
:15:04. > :15:08.what people are saying to them, and that shows that sentiment as a whole
:15:09. > :15:11.is falling, that expectations are, that in London, the property prices
:15:12. > :15:14.are going to fall, in the rest of the country it depends which market
:15:15. > :15:17.you are looking at, but the sentiment is also going downwards
:15:18. > :15:21.and rents are expected to fall as well. A couple of seconds but what
:15:22. > :15:25.has happened to the property funds? People were investing in them,
:15:26. > :15:27.difficult to get their money out because property is Ilicic wed. Are
:15:28. > :15:36.they still in trouble? People with money in those funds
:15:37. > :15:40.can't get money out quickly because if you want to sell money it takes
:15:41. > :15:43.time, particularly in the current market, it will take longer than
:15:44. > :15:47.usual. Thanks very much indeed for that.
:15:48. > :15:58.Bank is set to give its first policy decision after Britain took
:15:59. > :16:00.the decision to leave the European Union.
:16:01. > :16:06.Markets are awaiting any news to changes to the ECB's
:16:07. > :16:09.quantitative easing progamme - as reports suggest Japan is about to
:16:10. > :16:13.That is of course designed to kick-start ailing economies.
:16:14. > :16:17.A quick look at how markets are faring...
:16:18. > :16:28.There you go. The FTSE is one third of 1% down. It is not a big moving
:16:29. > :16:33.day. The pound against the dollar, remember, the strongest was 1.30
:16:34. > :16:40.three. The weakest was 1.28 after breaks it. -- after Brexit.
:16:41. > :16:43.Now - for most of us - when we think of foreign exchange,
:16:44. > :16:46.we think about holiday money before a trip overseas.
:16:47. > :16:48.But playing the currency markets is one of the fastest
:16:49. > :16:56.Small movements in the value of the pound or dollar can have huge
:16:57. > :17:00.The UK's decision to leave the European Union sent shockwaves
:17:01. > :17:05.Today, nearly a month after the vote - the pound
:17:06. > :17:09.is still around 10% weaker against the dollar.
:17:10. > :17:13.for British tourists visiting abroad, everything becomes
:17:14. > :17:18.But for foreign investors looking to buy shares
:17:19. > :17:25.or indeed whole companies in Britain, it costs less.
:17:26. > :17:28.It also makes UK-made goods cheaper abroad.
:17:29. > :17:30.Western Union Business Solutions helps companies transfer
:17:31. > :17:32.currency overseas and manage their foreign exchange risk.
:17:33. > :17:47.Did I pronounce that correctly? Well done. Talk us through what happened,
:17:48. > :17:52.it is still about 10% lower, the pound versus the dollar as a result
:17:53. > :17:58.of Brexit. What happened when you woke up? It was a bit chaotic to be
:17:59. > :18:00.honest, it was obviously an expected result and for most organisations,
:18:01. > :18:06.the world turned for them overnight, think about the cost of goods for a
:18:07. > :18:10.typical organisation, that immediately went up close to 10%
:18:11. > :18:16.which has a significant impact for the type of company we serve, a
:18:17. > :18:21.small, medium-size enterprise. If you are exporting the exports become
:18:22. > :18:25.cheaper for buyers and therefore you benefit. Did you get any idea what
:18:26. > :18:29.the net result was for most customers? I think everyone was
:18:30. > :18:33.concerned coming off this, there were some winners and losers from a
:18:34. > :18:36.currency standpoint but the reality is that it brings a fair amount of
:18:37. > :18:41.certainty to businesses within Britain. So that was the prevailing
:18:42. > :18:46.sentiment. Obviously right up front people were concerned about their
:18:47. > :18:50.financial situation. Largely those organisations that were exposed to
:18:51. > :18:58.international costs, they were concerned about that because it has
:18:59. > :19:04.a flow on effect. It is great for exporters. You make it easier for
:19:05. > :19:07.people to movement here around the world and we know that that is a
:19:08. > :19:11.global business and people need to be able to move near round but it
:19:12. > :19:15.strikes me there has always been a lot of middle man, someone creaming
:19:16. > :19:21.off profit at every stage and you have tried to remove some of that?
:19:22. > :19:24.We have. To contextualise it as playing the markets, that is the
:19:25. > :19:28.core of what we are advising businesses not to be doing. Too few
:19:29. > :19:33.businesses really care about this and actively manage it. Corporate
:19:34. > :19:39.stew a great job at the bus majority of businesses, 99%... You are
:19:40. > :19:45.talking about managing exposure? Yes, and the risk. They shouldn't be
:19:46. > :19:49.doing that? They should be doing that. You were talking about playing
:19:50. > :19:53.currencies. They should not be playing currencies, they should be
:19:54. > :19:59.actively managing it. How should they be doing it in this
:20:00. > :20:03.environment? It is important to understand their cost base and make
:20:04. > :20:06.sure they are securing that first, if you understand that then you can
:20:07. > :20:12.build from that and you know what your prices are, how to contract,
:20:13. > :20:15.ensure you are meeting prize points to be competitive. Understanding
:20:16. > :20:21.costs and setting cost rates is important. Very briefly, do they
:20:22. > :20:27.have some certainty now about where the pound is going? It is down, but
:20:28. > :20:31.it's not going anywhere else? They do have a bit of certainty? The
:20:32. > :20:35.certainty is that it will continue to move and that is what businesses
:20:36. > :20:42.should be expecting. They need to proactively manage against
:20:43. > :20:46.volatility. We are helping businesses to do that through
:20:47. > :20:52.platforms and products. Going back to your earlier point, the new
:20:53. > :20:55.platform does help to do that, cut out the middleman and make
:20:56. > :21:00.transactions easier and faster but also help them to manage their cash
:21:01. > :21:03.flow better, especially if they are impacted by foreign currencies. It
:21:04. > :21:08.is good to see you and I wish we could talk more but as always in
:21:09. > :21:09.this programme time is against us. Thank you or explaining all of that.
:21:10. > :21:19.It is nice to meet you both. EasyJet has just reported a fall in
:21:20. > :21:24.profits following a profit warning that was issued at the end of the
:21:25. > :21:28.month. The British carrier was affected by political instability,
:21:29. > :21:34.terror attacks, and now the UK voting to leave the EU. The
:21:35. > :21:39.investment director of AJ Bell says it is still unclear how it will
:21:40. > :21:42.affect easyJet. The long-term issue is the economic slowdown, we don't
:21:43. > :21:46.know if there is yet, but a lot of statistics were showing signs of
:21:47. > :21:54.weakness even before the referendum vote. As the industry added too much
:21:55. > :21:59.capacity? There was a ?25 million hit from oil increases and the pound
:22:00. > :22:05.going down. It is priced in dollars. The long-term impact, the company
:22:06. > :22:08.has expressed concern about consumer sentiment in the UK and Europe
:22:09. > :22:14.because it is not just flying in and out of the UK. It flies all around
:22:15. > :22:18.the continent. We don't know about the long-term impact but the fourth
:22:19. > :22:25.quarter, the most profitable of the year, it is around 65%. They are
:22:26. > :22:28.worried about consumer confidence but business travel was up 9% and
:22:29. > :22:34.they have been working hard on that and it has paid off. Brian is back
:22:35. > :22:44.to take us through the stories. -- Bronwen. Elon Musk does not shy away
:22:45. > :22:49.from headlines, he says they will create electric cars, trucks, buses
:22:50. > :22:53.and this sort of thing. We expected this but it's a big ask because an
:22:54. > :23:02.electric bus takes a lot of power. Yes. He has put this out on the
:23:03. > :23:11.company blog. He bought or merged a solar panel installation company, so
:23:12. > :23:14.maybe he is thinking of using solar panels on the tops of buses but I
:23:15. > :23:19.don't know how many you can get on the top of a bus. It would be a very
:23:20. > :23:22.big one. The big thing with all of this is that he's talking about all
:23:23. > :23:27.of this but he hasn't said when the company will be profitable which is
:23:28. > :23:32.quite important to people. You know, it's all about what we can do, but
:23:33. > :23:38.what about the battery technology? That is the big thing. Batteries
:23:39. > :23:42.will change and everything. If we get that right everything would be
:23:43. > :23:47.sold? That is the big thing if you can do that but no one has so far.
:23:48. > :23:51.Lots of talk and lots of things in production but he can do all of this
:23:52. > :23:56.if he gets the battery is right. He is a great dreamer with big
:23:57. > :24:03.ambitions. Speeding people across the deserts of America. Getting them
:24:04. > :24:07.from A to B in a couple of seconds. Does he deliver? He has delivered an
:24:08. > :24:13.electric car and one that had an accident of course as we know. But I
:24:14. > :24:17.think he has pushed out the barriers, other people follow him,
:24:18. > :24:22.and electric cars, it's not gas powered cars or other power, other
:24:23. > :24:31.cheap means of energy, it is electric cars we are looking at.
:24:32. > :24:37.Let's talk about Pokemon Go. It has now launched a dating service! We
:24:38. > :24:42.asked viewers about which app they would like that does not currently
:24:43. > :24:47.exist. One person said he would like one to find peace. A lovely thought
:24:48. > :24:54.on a Thursday morning. Any morning! David in Florida wants to see an app
:24:55. > :24:58.called message in a bottle, delivering a message to a random
:24:59. > :25:04.person years later! Carol would like to see an app which debunks lies
:25:05. > :25:09.from politicians. Lie detector, I like that. Let's talk about Pokemon
:25:10. > :25:16.Go is a dating service. It connects, dare I say, like-minded nerds. You
:25:17. > :25:22.fill out a little questionnaire. I think you have to be on Pokemon Go
:25:23. > :25:27.first. That counts me out! Exactly right! Then you fill in a
:25:28. > :25:31.questionnaire, they tried to put people together and they sent
:25:32. > :25:44.e-mails off to each of them, and the idea is that apparently it is called
:25:45. > :25:49.Project Six Up. -- Fix Up. The idea is that it is more fun to play with
:25:50. > :25:53.a friend. Thank you for your company today. Same time, same place
:25:54. > :25:56.tomorrow. Goodbye, we will see you later.