:00:00. > :00:00.following the UK's decision to leave the club.
:00:00. > :00:00.Live from London, that's our top story
:00:00. > :00:23.Later today, Angela Merkel, Francois Hollande and Matteo Renzi
:00:24. > :00:27.will discuss the future of the European Union.
:00:28. > :00:30.There are deep divisions across Europe as to when Britain
:00:31. > :00:34.should formally begin the process of leaving the EU.
:00:35. > :00:38.After months of speculation,
:00:39. > :00:41.the Indian government has appointed this man,
:00:42. > :00:44.Urjit Patel, as the next governor of India's Central Bank.
:00:45. > :00:48.his predecessor is credit with curbing double-digit inflation
:00:49. > :00:59.in the world's fastest growing major economy.
:01:00. > :01:03.Europe has opened lower, we will tell you why, it is a bit of a
:01:04. > :01:10.central bank thing this week again. If you've ever worked
:01:11. > :01:13.into an office, the chances are you've probably
:01:14. > :01:16.stood on a carpet tile made They're the world's biggest maker
:01:17. > :01:20.of what's known as modular flooring, but can such a big manufacturer
:01:21. > :01:24.operate sustainably? And, following the closing
:01:25. > :01:27.ceremony of Rio 2016, we want to know whether you think
:01:28. > :01:29.the Olympic games represents good Are you still using some
:01:30. > :01:51.of the facilities or is the Olympic Modular flooring! Who would have
:01:52. > :01:57.thought! For our American friends, carpet tiles! That is what it is.
:01:58. > :02:02.The German Chancellor, French President and Prime Minister
:02:03. > :02:04.of Italy are meeting today to discuss the future of Europe,
:02:05. > :02:06.following Britain's decision to leave the Europe Union.
:02:07. > :02:09.This is the second set of talks between the premiers
:02:10. > :02:11.of the eurozone's three largest economies since Britain's shock
:02:12. > :02:14.So what's at stake for Europe following Brexit?
:02:15. > :02:16.The UK is the world's 5th largest economy,
:02:17. > :02:18.and one of the EU's biggest contributors and until it formally
:02:19. > :02:20.leaves will keep paying into the EU budget.
:02:21. > :02:23.Last year the UK's net contribution was around 11 billion dollars.
:02:24. > :02:25.Germany's finance ministry has already hinted its contribution may
:02:26. > :02:27.have to rise by 2.5 billion when Britain leaves.
:02:28. > :02:29.If the UK-EU divorce proceedings become protracted
:02:30. > :02:36.and acrimonious, economic growth for both sides will be affected.
:02:37. > :02:40.Uncertainty is likely to have a negative impact
:02:41. > :02:50.from financial services to manufacturing.
:02:51. > :02:56.infrastructure spending has already declined sharply
:02:57. > :03:01.Europe will face a test with elections in France,
:03:02. > :03:09.Weak growth and high unemployment in much of Europe
:03:10. > :03:13.to eurosceptic and anti-immigration right wing parties.
:03:14. > :03:16.And if Britain does manage to negotiate a favourable exit
:03:17. > :03:40.it may prompt other EU countries to try and follow suit.
:03:41. > :03:55.Welcome to the programme, what you think will be the key issues that
:03:56. > :04:06.they discuss, clearly, Brexit is going to figure heavily, Guntram
:04:07. > :04:12.Wolff, Director of the Bruegel Institute, thank you for joining us.
:04:13. > :04:15.Links to this question is what do we as continental Europeans want to do
:04:16. > :04:20.differently to convince voters across the continent that getting
:04:21. > :04:25.dispassionate about the European project to be more convinced about
:04:26. > :04:34.European integration, it is about that, the relations to the UK as
:04:35. > :04:38.well as the formation of the EU itself. Angela Merkel says that she
:04:39. > :04:42.would like a better Europe as opposed to more Europe, they are
:04:43. > :04:46.having to rethink, aren't they, the way that they discuss the future for
:04:47. > :04:51.Europe, because for those areas within the European club who are
:04:52. > :04:56.very not happy about the scenario, the status quo, they need to get
:04:57. > :05:04.them on board, to not have another Brexit occur. Another Brexit is not
:05:05. > :05:09.that likely, many people here have seen that there was a lot of
:05:10. > :05:13.political turmoil in the United Kingdom, and people are looking very
:05:14. > :05:18.carefully at the numbers, the business numbers, and so on, that
:05:19. > :05:21.are coming in from the UK, but it is clear that there is a lot of
:05:22. > :05:26.dissatisfaction across perhaps the entire Western world about
:05:27. > :05:31.joblessness and income inequality and low productivity growth and
:05:32. > :05:36.growth only going to the top one or 2%, and so on. This is a massive
:05:37. > :05:42.topic, and on top of that, the Eurozone faces still a couple of
:05:43. > :05:46.very specific problems, low growth is particularly bad, particularly
:05:47. > :05:51.bad in the Eurozone, I think we need at least from the macroeconomic
:05:52. > :05:54.policy side and from debt restructuring side, we need more
:05:55. > :06:02.action to really get growth going, and job creation going. Given that,
:06:03. > :06:07.there is a valid point, some may say that the UK has the upper hand here,
:06:08. > :06:11.given the size of the UK market, the EU cannot afford not to deal with
:06:12. > :06:16.the UK market, and on top of that, all of the problems you just said
:06:17. > :06:21.about the use... In fact, these three leaders, they are between a
:06:22. > :06:27.rock and a hard place. Yes, that is right, I would say that the real
:06:28. > :06:33.issue, both sides will lose, if you go on a confrontational side, the UK
:06:34. > :06:40.would be more effective on average than every single continental
:06:41. > :06:47.company, but frankly, in this global volatile world, Europe as a whole
:06:48. > :06:51.cannot afford to lose another three, four, five-year is with internal
:06:52. > :06:56.battles. I really hope that we find a collaborative solution, and I
:06:57. > :07:01.think that it is a fundamental political question, really, whether
:07:02. > :07:08.the UK wants to negotiate, engage, establish some close collaboration
:07:09. > :07:11.with Europe, not membership of the EU, and which has mobility, and
:07:12. > :07:18.reverse, the continent, people have to decide, do we accept to form a
:07:19. > :07:22.deal where there is less labour mobility, control of Lebanon
:07:23. > :07:27.mobility, but still substantial access to the single market. We
:07:28. > :07:34.appreciate your time, thank you for joining us. -- control of Labour
:07:35. > :07:41.mobility. Later on they will be doing a press conference from an
:07:42. > :07:46.Italian aircraft carrier, at sea, I wonder whether Theresa May will be
:07:47. > :07:51.tuning in! That is where they formulated the regional... The EU
:07:52. > :07:54.itself... That is where they did it, the Constitution itself! That is
:07:55. > :07:58.where they did it, on the aircraft carrier. You don't believe me!
:07:59. > :07:59.LAUGHTER Other stories making headlines, what
:08:00. > :08:02.about this one: The operator of the Hong Kong stock
:08:03. > :08:05.exchange has introduced new measures effective today,
:08:06. > :08:07.to help deal with extreme price The new system will restrict a stock
:08:08. > :08:11.from moving more than 10% during a 5-minute period
:08:12. > :08:13.during the trading day. The new controls are similar
:08:14. > :08:16.to models used by stock exchanges US pharmaceutical giant Pfizer
:08:17. > :08:30.is reportedly in advanced talks to buy cancer drug company
:08:31. > :08:32.Medivation for about $14 billion. The Financial Times and Bloomberg
:08:33. > :08:34.are reporting that an announcement of a takeover could come
:08:35. > :08:36.early this week. San Francisco-based Medivation
:08:37. > :09:00.produces the prostate-cancer I'm on my feet again, taking a look
:09:01. > :09:03.at the market, starting with yen, the Japanese yen, that has
:09:04. > :09:09.strengthened towards the 100 per dollar mark. Not good for the
:09:10. > :09:14.Japanese economy... Can we show the markets? Not too sure, it has
:09:15. > :09:17.triggered a bout of verbal intervention from the Japanese
:09:18. > :09:31.authorities. Cannot yet show you the markets, but we can tell you that
:09:32. > :09:34.the yen continues to rise. Talk of more Japanese stimulus in September.
:09:35. > :09:36.But look let's be frank markets have been blown this way and that in
:09:37. > :09:39.recent weeks by comments from US Federal Reserve officials on the
:09:40. > :09:41.likelihood or at least the merits of higher US interest rates. We have a
:09:42. > :09:44.small market is up here, the Nikkei like the fact there could be more
:09:45. > :09:57.stimulus coming. Let's be frank, markets have been blowing this way
:09:58. > :09:59.and that way. In fact it feels like we've had a bunch of mixed messages.
:10:00. > :10:01.But hopefully that'll all become clearer on August 26th this Friday
:10:02. > :10:02.when central bankers from around the world gather in Jackson Hole,
:10:03. > :10:28.Wyoming for a pow wow! Imex data and surveys are going to
:10:29. > :10:32.give us a clearer picture. -- a mix of data and surveys. This includes
:10:33. > :10:36.house prices and home sales and existing home sales. Also look out
:10:37. > :10:42.for bolts rather's update on its regular Tory approval to fix the 8.5
:10:43. > :10:47.million diesel engine. -- regulatory. On Friday, all eyes will
:10:48. > :10:53.be once again on this US central bank, where the Federal reserve
:10:54. > :10:57.chair, Janet Yellen, speaks at a monetary policy symposium in
:10:58. > :10:59.Wyoming. As usual, investors will be looking for clues as to when we
:11:00. > :11:13.might see an interest rate hike will stop giving a sense of what is ahead
:11:14. > :11:37.in the United States, Samira Hussain.
:11:38. > :11:43.Many will say that this man has some big shoes to fill, replacing the
:11:44. > :11:48.so-called rock and roll star of India economics. That is why some
:11:49. > :11:51.people feel he got the job, there were many big names in the race who
:11:52. > :11:57.had achieved economic adviser to the government. Many had expected that
:11:58. > :12:03.the government may pick them up, but what has gone in his favour, is
:12:04. > :12:08.apart from having strong credentials, he is someone who does
:12:09. > :12:11.not speak outside of monetary policy issues, something that he is famous
:12:12. > :12:17.for doing for, and the last three years, checking up, he has given one
:12:18. > :12:21.interview and one sweet, that shows he is a local guide, good at his
:12:22. > :12:25.job, strong record, not just with the government, but working with
:12:26. > :12:29.various previous governments in different departments. That is what
:12:30. > :12:40.has gone in his favour. He has worked with... This is a signal to
:12:41. > :12:43.the markets and investors that they want to continue with the same
:12:44. > :12:50.policies that they had initiated in the last two or three years. Thank
:12:51. > :12:56.you very much. Urjit Patel, the new governor to be of the reserve bank
:12:57. > :13:02.of India. It is all about the central banks. The third vice
:13:03. > :13:06.chairman Stanley Fish are talking about the US economy over the
:13:07. > :13:10.weekend, as Arron has mentioned, Japan's central-bank governor
:13:11. > :13:14.hinting that there is more stimulus in September, we are all looking to
:13:15. > :13:18.the central bank chiefs to help us through the year. We certainly are,
:13:19. > :13:22.seems like there is a diverging approach here, between the different
:13:23. > :13:27.countries, we have just heard that India is looking to separate fiscal
:13:28. > :13:32.and monetary policy, monetary being what the central banks do, he in the
:13:33. > :13:36.UK, what Mark Carney might do, or the US or the fat, but the fiscal
:13:37. > :13:41.policies of the government, and India looking to say, we have had
:13:42. > :13:48.someone who has been interfering on the physical side. -- the US or the
:13:49. > :13:56.fed. In Japan they are looking to pump money in. That is the decision
:13:57. > :14:00.of the Prime Minister of Japan. In the UK we have the monetary policy
:14:01. > :14:05.of the Bank of England, producing interest rates, reducing cutely. Now
:14:06. > :14:12.the focus turns to the Chancellor, Philip Hammond, to see what he will
:14:13. > :14:14.do on the fiscal side, and in America, the all-powerful Federal
:14:15. > :14:19.reserve, meeting with some of the other central bankers in Wyoming,
:14:20. > :14:22.and talking about how they will change monetary policy. We will see
:14:23. > :14:27.different approaches around the world, that will make for very
:14:28. > :14:31.interesting approaches to markets. At this central-bank meeting, you
:14:32. > :14:35.would love to be a fly on the wall, you can imagine that, we are doing
:14:36. > :14:41.as much as we can, probably above and beyond what the role of a
:14:42. > :14:46.central bank is, more on the fiscal side... Maybe they together can put
:14:47. > :14:50.more pressure, independently...? There will be more pressure on
:14:51. > :14:53.governments but it is not in the central bank's interest to say we
:14:54. > :14:58.are doing all we can, most central bankers are keen to be involved in
:14:59. > :15:01.policy on a wider perspective, we see central bankers gain influence
:15:02. > :15:05.every time we come on and talk. Seems to be that the central bankers
:15:06. > :15:10.are ever more important. They would never admit to not being able to do
:15:11. > :15:13.anything more. I think they will be nudging their counterpart at the
:15:14. > :15:15.Treasury Departments. In Japan, great example, working together. To
:15:16. > :15:30.be able to do something. For the uninitiated, monetary was
:15:31. > :15:35.what the central banks do, pumping given money, interest rates, fiscal
:15:36. > :15:40.is what the government, Labour reforms... Infrastructure, tax rates
:15:41. > :15:44.and those kinds of things. Thanks, Nick, we will see you in a
:15:45. > :15:48.moment. Still to come, if you have ever worked in an office, chances
:15:49. > :15:53.are you have stood on a carpet made by an American firm, Interface.
:15:54. > :15:55.Later in the programme we will speak to the company about their plans for
:15:56. > :16:00.the future and how green they are. You're with Business
:16:01. > :16:05.Live from BBC News. A new report by the UK's leading
:16:06. > :16:08.trade union has found that ethnic minority groups are a third more
:16:09. > :16:11.likely to be under-employed compared The TUC research has been submitted
:16:12. > :16:16.to the UK Government's consultation into developing black and minority
:16:17. > :16:19.talent. Wilf Sullivan is race and equalities
:16:20. > :16:37.officer at the TUC. Welcome to the programme. Hard to
:16:38. > :16:47.believe we are in the middle of 2016 and this is still an issue? Yes, it
:16:48. > :16:52.has been a long-standing problem which we have constantly published
:16:53. > :16:59.reports about. This report looks at a range of issues but today we are
:17:00. > :17:02.highlighting under employment, which is where people are either in
:17:03. > :17:07.part-time work and want full-time work, or just want more hours. Why
:17:08. > :17:12.is this issue not being properly addressed? You highlighted it at the
:17:13. > :17:16.TUC but other organisations have also highlighted the problem, and I
:17:17. > :17:20.know there are think tanks all over the place, the House of Lords has a
:17:21. > :17:24.committee to look at the issue of diversity, why are we not seeing
:17:25. > :17:29.significant progress? We think the Government needs to have a strategy
:17:30. > :17:33.which addresses this, and we also think there is any need for
:17:34. > :17:37.employers to do more monitoring, to have target and be more transparent
:17:38. > :17:50.about what they are doing to employ BMT staff. -- BME. It might be an
:17:51. > :17:55.old-fashioned concept, but quotas? I'm not talking about quotas but
:17:56. > :17:59.about positive action being taken. What the figures show is that we are
:18:00. > :18:03.not a labour market which just appoints people on the basis of
:18:04. > :18:08.merit, and that discrimination does exist, so we need to address it. OK,
:18:09. > :18:12.thank you so much for your time today, and of course we will keep an
:18:13. > :18:15.eye on the progress of that and what the TUC does in terms of Government
:18:16. > :18:21.reaction. Let's show you this picture here.
:18:22. > :18:24.Former Prime Minister John Major, a picture of him clapping with
:18:25. > :18:30.delight, because Team GB came above China in the Olympic medal table. He
:18:31. > :18:34.is getting praise because his Government took the decision to
:18:35. > :18:38.launch the national lottery which funds a heck of a lot of the
:18:39. > :18:41.training and getting the Olympics on the track, as it were.
:18:42. > :18:47.Later today, Angela Merkel, Francois Hollande
:18:48. > :18:57.and Matteo Renzi will discuss the future of the European Union.
:18:58. > :18:59.There are deep divisions across Europe as to when Britain
:19:00. > :19:02.should formally begin the process of leaving the EU.
:19:03. > :19:09.The Article 50 button has yet to be pushed, so we will keep an eye on
:19:10. > :19:18.those discussions today. There is a press conference later today.
:19:19. > :19:22.Article 50 is the process of when the UK says, OK, Europe, we are
:19:23. > :19:25.going, and then the clock starts ticking and we have got two years,
:19:26. > :19:32.is that right? Yes, two years.
:19:33. > :19:34.That have a quick look at the markets, Bank theme.
:19:35. > :19:41.The European market or slightly higher at the start of a brand-new
:19:42. > :19:46.business week. Everyone digesting what the vice president of the
:19:47. > :19:49.Central reserve had to say about the US economy.
:19:50. > :19:51.All of those central banking figures getting together in Jackson hole in
:19:52. > :19:53.Wyoming on Friday. Interface is the world's largest
:19:54. > :19:56.designer and maker of carpet tiles, The American firm was founded
:19:57. > :20:02.in 1973 in Atlanta by Ray Anderson, who recognised the need for flexible
:20:03. > :20:04.floor coverings Modular carpet tiles continued
:20:05. > :20:15.to grow in popularity and by 1978 Interface sales had reached
:20:16. > :20:17.$11 million, with the company In the mid-1990s, Anderson took
:20:18. > :20:24.the decision to completely shift the company's strategy,
:20:25. > :20:31.to focus on sustainability. 20 years on and that pledge
:20:32. > :20:34.is still going, with the firm's aim of Mission Zero pledge -
:20:35. > :20:36.their vision of becoming totally sustainable and ultimately
:20:37. > :20:42.restorative by 2020. Let's get the Inside Track
:20:43. > :20:45.with the current President and CEO of Interface for Europe,
:20:46. > :21:00.Middle East and Africa, Thank you for bringing in a carpet
:21:01. > :21:03.tile! We need a bit more! Before we talk about it, I want to know how
:21:04. > :21:10.you make this green, but before that, this is the concept that the
:21:11. > :21:20.founder, I think he was simply reading a book and he had that spear
:21:21. > :21:24.to the chest moment? It was about how his company, if you will, was
:21:25. > :21:28.not doing very good for the environment? No, carpet is oil
:21:29. > :21:35.driven, the top, the back, everything in between requires oil.
:21:36. > :21:40.When Anderson read a book called The Ecology Of Commerce, he realised
:21:41. > :21:44.what we were doing, plundering the earth's resources, was not a
:21:45. > :21:48.sustainable business model and he had to redirect the company to no
:21:49. > :21:52.longer harm the environment and stop plundering the earth's resources. 20
:21:53. > :21:57.years ago he had that epiphany, as it were, and he was running the
:21:58. > :22:01.company, which was a listed company. How do you sell that message to your
:22:02. > :22:10.shareholders and those who work for you, 20 years ago when it was not
:22:11. > :22:13.necessarily the trendy thing to do, there was not the pressure on
:22:14. > :22:17.companies to change their ways? Exactly, it was radical. The first
:22:18. > :22:26.step Interface took was to declare a war on waste, to remove any waste in
:22:27. > :22:29.time, material, energy, and quickly started to save money, which it
:22:30. > :22:41.could then reinvest into machinery and technology that would help us to
:22:42. > :22:43.save even more time, money and -- time, energy and material, said that
:22:44. > :22:49.has been the start of our sustainable path and we have been at
:22:50. > :22:52.it for more than 20 years, we are still a stock trading company, we
:22:53. > :22:59.have to show good results every quarter and we are showing that it
:23:00. > :23:03.is possible and that it pays. You save money, the company started
:23:04. > :23:08.saving money on this, putting things back into the environment. Other
:23:09. > :23:12.companies and leaders of other companies were watching this very
:23:13. > :23:16.closely, weren't they? Yes, that carpet tile that you have right bed
:23:17. > :23:23.now takes only 50% of the energy that it used to take to produce
:23:24. > :23:27.carpet tiles, 50% less energy. That is a major cost reduction,
:23:28. > :23:32.obviously, and the remainder of the energy uses renewable energy, in
:23:33. > :23:37.your report of the key manufacturing locations is run on a 100% renewable
:23:38. > :23:41.energy, so it is reduction of energy, saving money, but it also
:23:42. > :23:48.then opens up the door to more sustainable solutions. Sustainable
:23:49. > :23:52.solutions, other solutions that support local suppliers like
:23:53. > :23:56.fishermen in the Philippines, for example, but we have looked back on
:23:57. > :24:02.20 years ago and where you are now, but you are looking beyond that to
:24:03. > :24:05.the next goal? Clearly we want to bring our products, plant and
:24:06. > :24:10.suppliers to zero but you mentioned already it is our goal to be
:24:11. > :24:14.environmentally restorative but also socially inclusive. We have got
:24:15. > :24:19.fishermen in the Philippines gathering discarded fishing nets
:24:20. > :24:22.from the shoreline and beaches that are now regenerated into beautiful
:24:23. > :24:28.fibres that we use, for example, to produce... We are running out of
:24:29. > :24:32.time, but I'm looking at this and it looks like it has got black rubber
:24:33. > :24:41.and the fibres, how do you manufacture something like this in a
:24:42. > :24:46.Greenway? First of all it is based on 100% renewable energy, second to
:24:47. > :24:49.use recycled material or bio -based material only, and to take
:24:50. > :24:54.responsibility of your product after use, so we take our carpet tiles
:24:55. > :25:00.back after a customer is done with it and we reuse those materials. It
:25:01. > :25:05.is a perfect closedloop, if you will. We appreciate you come again,
:25:06. > :25:11.thank you so much, from the company Interface.
:25:12. > :25:15.A Dutch man with an American accent! Who were you supporting during the
:25:16. > :25:22.Olympics? It has got to be benevolent? Shame about hockey! I
:25:23. > :25:25.know! -- got to beat the Netherlands.
:25:26. > :25:34.Just to say, before we go, that island where all of the heads of
:25:35. > :25:41.state meeting, it is where the intellectual manifesto that led to
:25:42. > :25:41.European political unification was made.
:25:42. > :25:46.I was close! See you tomorrow.