22/08/2016 BBC Business Live


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following the UK's decision to leave the club.


Live from London, that's our top story


Later today, Angela Merkel, Francois Hollande and Matteo Renzi


will discuss the future of the European Union.


There are deep divisions across Europe as to when Britain


should formally begin the process of leaving the EU.


After months of speculation,


the Indian government has appointed this man,


Urjit Patel, as the next governor of India's Central Bank.


his predecessor is credit with curbing double-digit inflation


in the world's fastest growing major economy.


Europe has opened lower, we will tell you why, it is a bit of a


central bank thing this week again. If you've ever worked


into an office, the chances are you've probably


stood on a carpet tile made They're the world's biggest maker


of what's known as modular flooring, but can such a big manufacturer


operate sustainably? And, following the closing


ceremony of Rio 2016, we want to know whether you think


the Olympic games represents good Are you still using some


of the facilities or is the Olympic Modular flooring! Who would have


thought! For our American friends, carpet tiles! That is what it is.


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 three largest economies since Britain's shock


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 into the EU budget.


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


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


from financial services to manufacturing.


infrastructure spending has already declined sharply


Europe will face a test with elections in France,


Weak growth and high unemployment in much of Europe


to eurosceptic and anti-immigration right wing parties.


And if Britain does manage to negotiate a favourable exit


it may prompt other EU countries to try and follow suit.


Welcome to the programme, what you think will be the key issues that


they discuss, clearly, Brexit is going to figure heavily, Guntram


Wolff, Director of the Bruegel Institute, thank you for joining us.


Links to this question is what do we as continental Europeans want to do


differently to convince voters across the continent that getting


dispassionate about the European project to be more convinced about


European integration, it is about that, the relations to the UK as


well as the formation of the EU itself. Angela Merkel says that she


would like a better Europe as opposed to more Europe, they are


having to rethink, aren't they, the way that they discuss the future for


Europe, because for those areas within the European club who are


very not happy about the scenario, the status quo, they need to get


them on board, to not have another Brexit occur. Another Brexit is not


that likely, many people here have seen that there was a lot of


political turmoil in the United Kingdom, and people are looking very


carefully at the numbers, the business numbers, and so on, that


are coming in from the UK, but it is clear that there is a lot of


dissatisfaction across perhaps the entire Western world about


joblessness and income inequality and low productivity growth and


growth only going to the top one or 2%, and so on. This is a massive


topic, and on top of that, the Eurozone faces still a couple of


very specific problems, low growth is particularly bad, particularly


bad in the Eurozone, I think we need at least from the macroeconomic


policy side and from debt restructuring side, we need more


action to really get growth going, and job creation going. Given that,


there is a valid point, some may say that the UK has the upper hand here,


given the size of the UK market, the EU cannot afford not to deal with


the UK market, and on top of that, all of the problems you just said


about the use... In fact, these three leaders, they are between a


rock and a hard place. Yes, that is right, I would say that the real


issue, both sides will lose, if you go on a confrontational side, the UK


would be more effective on average than every single continental


company, but frankly, in this global volatile world, Europe as a whole


cannot afford to lose another three, four, five-year is with internal


battles. I really hope that we find a collaborative solution, and I


think that it is a fundamental political question, really, whether


the UK wants to negotiate, engage, establish some close collaboration


with Europe, not membership of the EU, and which has mobility, and


reverse, the continent, people have to decide, do we accept to form a


deal where there is less labour mobility, control of Lebanon


mobility, but still substantial access to the single market. We


appreciate your time, thank you for joining us. -- control of Labour


mobility. Later on they will be doing a press conference from an


Italian aircraft carrier, at sea, I wonder whether Theresa May will be


tuning in! That is where they formulated the regional... The EU


itself... That is where they did it, the Constitution itself! That is


where they did it, on the aircraft carrier. You don't believe me!


LAUGHTER Other stories making headlines, what


about this one: The operator of the Hong Kong stock


exchange has introduced new measures effective today,


to help deal with extreme price The new system will restrict a stock


from moving more than 10% during a 5-minute period


during the trading day. The new controls are similar


to models used by stock exchanges US pharmaceutical giant Pfizer


is reportedly in advanced talks to buy cancer drug company


Medivation for about $14 billion. The Financial Times and Bloomberg


are reporting that an announcement of a takeover could come


early this week. San Francisco-based Medivation


produces the prostate-cancer I'm on my feet again, taking a look


at the market, starting with yen, the Japanese yen, that has


strengthened towards the 100 per dollar mark. Not good for the


Japanese economy... Can we show the markets? Not too sure, it has


triggered a bout of verbal intervention from the Japanese


authorities. Cannot yet show you the markets, but we can tell you that


the yen continues to rise. Talk of more Japanese stimulus in September.


But look let's be frank markets have been blown this way and that in


recent weeks by comments from US Federal Reserve officials on the


likelihood or at least the merits of higher US interest rates. We have a


small market is up here, the Nikkei like the fact there could be more


stimulus coming. Let's be frank, markets have been blowing this way


and that way. In fact it feels like we've had a bunch of mixed messages.


But hopefully that'll all become clearer on August 26th this Friday


when central bankers from around the world gather in Jackson Hole,


Wyoming for a pow wow! Imex data and surveys are going to


give us a clearer picture. -- a mix of data and surveys. This includes


house prices and home sales and existing home sales. Also look out


for bolts rather's update on its regular Tory approval to fix the 8.5


million diesel engine. -- regulatory. On Friday, all eyes will


be once again on this US central bank, where the Federal reserve


chair, Janet Yellen, speaks at a monetary policy symposium in


Wyoming. As usual, investors will be looking for clues as to when we


might see an interest rate hike will stop giving a sense of what is ahead


in the United States, Samira Hussain.


Many will say that this man has some big shoes to fill, replacing the


so-called rock and roll star of India economics. That is why some


people feel he got the job, there were many big names in the race who


had achieved economic adviser to the government. Many had expected that


the government may pick them up, but what has gone in his favour, is


apart from having strong credentials, he is someone who does


not speak outside of monetary policy issues, something that he is famous


for doing for, and the last three years, checking up, he has given one


interview and one sweet, that shows he is a local guide, good at his


job, strong record, not just with the government, but working with


various previous governments in different departments. That is what


has gone in his favour. He has worked with... This is a signal to


the markets and investors that they want to continue with the same


policies that they had initiated in the last two or three years. Thank


you very much. Urjit Patel, the new governor to be of the reserve bank


of India. It is all about the central banks. The third vice


chairman Stanley Fish are talking about the US economy over the


weekend, as Arron has mentioned, Japan's central-bank governor


hinting that there is more stimulus in September, we are all looking to


the central bank chiefs to help us through the year. We certainly are,


seems like there is a diverging approach here, between the different


countries, we have just heard that India is looking to separate fiscal


and monetary policy, monetary being what the central banks do, he in the


UK, what Mark Carney might do, or the US or the fat, but the fiscal


policies of the government, and India looking to say, we have had


someone who has been interfering on the physical side. -- the US or the


fed. In Japan they are looking to pump money in. That is the decision


of the Prime Minister of Japan. In the UK we have the monetary policy


of the Bank of England, producing interest rates, reducing cutely. Now


the focus turns to the Chancellor, Philip Hammond, to see what he will


do on the fiscal side, and in America, the all-powerful Federal


reserve, meeting with some of the other central bankers in Wyoming,


and talking about how they will change monetary policy. We will see


different approaches around the world, that will make for very


interesting approaches to markets. At this central-bank meeting, you


would love to be a fly on the wall, you can imagine that, we are doing


as much as we can, probably above and beyond what the role of a


central bank is, more on the fiscal side... Maybe they together can put


more pressure, independently...? There will be more pressure on


governments but it is not in the central bank's interest to say we


are doing all we can, most central bankers are keen to be involved in


policy on a wider perspective, we see central bankers gain influence


every time we come on and talk. Seems to be that the central bankers


are ever more important. They would never admit to not being able to do


anything more. I think they will be nudging their counterpart at the


Treasury Departments. In Japan, great example, working together. To


be able to do something. For the uninitiated, monetary was


what the central banks do, pumping given money, interest rates, fiscal


is what the government, Labour reforms... Infrastructure, tax rates


and those kinds of things. Thanks, Nick, we will see you in a


moment. Still to come, if you have ever worked in an office, chances


are you have stood on a carpet made by an American firm, Interface.


Later in the programme we will speak to the company about their plans for


the future and how green they are. You're with Business


Live from BBC News. A new report by the UK's leading


trade union has found that ethnic minority groups are a third more


likely to be under-employed compared The TUC research has been submitted


to the UK Government's consultation into developing black and minority


talent. Wilf Sullivan is race and equalities


officer at the TUC. Welcome to the programme. Hard to


believe we are in the middle of 2016 and this is still an issue? Yes, it


has been a long-standing problem which we have constantly published


reports about. This report looks at a range of issues but today we are


highlighting under employment, which is where people are either in


part-time work and want full-time work, or just want more hours. Why


is this issue not being properly addressed? You highlighted it at the


TUC but other organisations have also highlighted the problem, and I


know there are think tanks all over the place, the House of Lords has a


committee to look at the issue of diversity, why are we not seeing


significant progress? We think the Government needs to have a strategy


which addresses this, and we also think there is any need for


employers to do more monitoring, to have target and be more transparent


about what they are doing to employ BMT staff. -- BME. It might be an


old-fashioned concept, but quotas? I'm not talking about quotas but


about positive action being taken. What the figures show is that we are


not a labour market which just appoints people on the basis of


merit, and that discrimination does exist, so we need to address it. OK,


thank you so much for your time today, and of course we will keep an


eye on the progress of that and what the TUC does in terms of Government


reaction. Let's show you this picture here.


Former Prime Minister John Major, a picture of him clapping with


delight, because Team GB came above China in the Olympic medal table. He


is getting praise because his Government took the decision to


launch the national lottery which funds a heck of a lot of the


training and getting the Olympics on the track, as it were.


Later today, Angela Merkel, Francois Hollande


and Matteo Renzi will discuss the future of the European Union.


There are deep divisions across Europe as to when Britain


should formally begin the process of leaving the EU.


The Article 50 button has yet to be pushed, so we will keep an eye on


those discussions today. There is a press conference later today.


Article 50 is the process of when the UK says, OK, Europe, we are


going, and then the clock starts ticking and we have got two years,


is that right? Yes, two years.


That have a quick look at the markets, Bank theme.


The European market or slightly higher at the start of a brand-new


business week. Everyone digesting what the vice president of the


Central reserve had to say about the US economy.


All of those central banking figures getting together in Jackson hole in


Wyoming on Friday. Interface is the world's largest


designer and maker of carpet tiles, The American firm was founded


in 1973 in Atlanta by Ray Anderson, who recognised the need for flexible


floor coverings Modular carpet tiles continued


to grow in popularity and by 1978 Interface sales had reached


$11 million, with the company In the mid-1990s, Anderson took


the decision to completely shift the company's strategy,


to focus on sustainability. 20 years on and that pledge


is still going, with the firm's aim of Mission Zero pledge -


their vision of becoming totally sustainable and ultimately


restorative by 2020. Let's get the Inside Track


with the current President and CEO of Interface for Europe,


Middle East and Africa, Thank you for bringing in a carpet


tile! We need a bit more! Before we talk about it, I want to know how


you make this green, but before that, this is the concept that the


founder, I think he was simply reading a book and he had that spear


to the chest moment? It was about how his company, if you will, was


not doing very good for the environment? No, carpet is oil


driven, the top, the back, everything in between requires oil.


When Anderson read a book called The Ecology Of Commerce, he realised


what we were doing, plundering the earth's resources, was not a


sustainable business model and he had to redirect the company to no


longer harm the environment and stop plundering the earth's resources. 20


years ago he had that epiphany, as it were, and he was running the


company, which was a listed company. How do you sell that message to your


shareholders and those who work for you, 20 years ago when it was not


necessarily the trendy thing to do, there was not the pressure on


companies to change their ways? Exactly, it was radical. The first


step Interface took was to declare a war on waste, to remove any waste in


time, material, energy, and quickly started to save money, which it


could then reinvest into machinery and technology that would help us to


save even more time, money and -- time, energy and material, said that


has been the start of our sustainable path and we have been at


it for more than 20 years, we are still a stock trading company, we


have to show good results every quarter and we are showing that it


is possible and that it pays. You save money, the company started


saving money on this, putting things back into the environment. Other


companies and leaders of other companies were watching this very


closely, weren't they? Yes, that carpet tile that you have right bed


now takes only 50% of the energy that it used to take to produce


carpet tiles, 50% less energy. That is a major cost reduction,


obviously, and the remainder of the energy uses renewable energy, in


your report of the key manufacturing locations is run on a 100% renewable


energy, so it is reduction of energy, saving money, but it also


then opens up the door to more sustainable solutions. Sustainable


solutions, other solutions that support local suppliers like


fishermen in the Philippines, for example, but we have looked back on


20 years ago and where you are now, but you are looking beyond that to


the next goal? Clearly we want to bring our products, plant and


suppliers to zero but you mentioned already it is our goal to be


environmentally restorative but also socially inclusive. We have got


fishermen in the Philippines gathering discarded fishing nets


from the shoreline and beaches that are now regenerated into beautiful


fibres that we use, for example, to produce... We are running out of


time, but I'm looking at this and it looks like it has got black rubber


and the fibres, how do you manufacture something like this in a


Greenway? First of all it is based on 100% renewable energy, second to


use recycled material or bio -based material only, and to take


responsibility of your product after use, so we take our carpet tiles


back after a customer is done with it and we reuse those materials. It


is a perfect closedloop, if you will. We appreciate you come again,


thank you so much, from the company Interface.


A Dutch man with an American accent! Who were you supporting during the


Olympics? It has got to be benevolent? Shame about hockey! I


know! -- got to beat the Netherlands.


Just to say, before we go, that island where all of the heads of


state meeting, it is where the intellectual manifesto that led to


European political unification was made.


I was close! See you tomorrow.


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