22/08/2016 BBC Business Live

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.