07/09/2017 BBC Business Live

This is Business Live from BBC News with Sally Bundock

The European Central Bank has everyone's attention today as it

grapples with the soaring euro and the future

Live from London, that's our top story today,

A big headache for the ECB boss, Mario Draghi. When to wind down the

massive stimulus programme? There are fears the $2.4 trillion package

which propped up the eurozone could be creating a bubble. And tempering

Trump's rhetoric against North Korea. Are they watering down trade

sanctions against Pyongyang? We will get the view from Asia and this is

the situation in the markets in Europe as they open on the up. A lot

of investors waiting for that key decision from the ECB.

from a South African entrepreneur known for his passion for democratic

technology and a spell on the International Space Station.

So today we are asking what are your astro ambitions?

If you were given the chance to go to the International Space Station,

We start in Frankfurt where in a few hours' time

the European Central Bank holds its latest policy meeting.

The big question - when will it begin to raise interest

rates from their historic lows and start unwinding the massive

economic stimulus programme that's been in place

The eurozone economy is in much better shape,

growing at just over 2 percent a year.

And the recovery is broad, including weaker nations such

So called core inflation - which strips out volatile elements

like fuel and food - hit 1.2 percent last month.

The overall rate was 1.5 but that's still below

And the recovery's partly down to this -

pumped into the economy through quantitative easing.

In other words, creating new money and using it to buy up bonds.

Critics argue this flood of money is creating a bubble on stock

Others warn scaling it back too quickly could plunge

Europe's recovery has also caused this.

A surge in the Euro, which is up almost 13 percent

Tightening monetary policy could boost the currency even further.

Philippe Legrain is a former economic adviser to the President

of the European Commission, from the London School of Economics.

So that is Mario Draghi's dilemma. What are you expecting from today,

if anything? As she rightly said, the big question is when and how the

ECB winds down its bond purchases. I think it is unlikely to start doing

so today. First of all because, as she pointed out, the economic

situation has improved, but inflation is still low, way of the

target. And secondly because the ECB has not prepared markets for this

move, and if it acted without preparing markets, you would see a

big sell-off which could cause it to reverse. Will he give some heavy

hints in the press conference about when tapering or scaling back of

quantitative easing will begin? I imagine Mario Draghi will be hinting

at the way forward. He has already spoken about the fears of deflation

being over and out that being a question about reflation. The next

ECB meeting is on the 26th of October and that is probably the

time we will see an announcement about what the plans for bond buying

our next year, when they might be wound down, and at what pace.

Although as I pointed out, the economy across the eurozone is

growing again, much more positive numbers, and there is growth in

Greece, still be economies are very vastly different. Germany could

withstand this rollback of quantitative easing. Of course. It

is different across the eurozone and there is a lot of slack in economy.

The growth figures for the first half of this year are good, but if

you look at the context over past decade, actually eurozone living

standards are no higher than they were a decade ago, and therefore

there is plenty of scope for the economy to carry on growing without

wages taking off, and therefore without inflation taking off, so

people will say we need to stay our hand on that. There is also the fear

that if we act pre-emptively, firstly we could see the Euro

strengthening, which would depress inflation, and secondly we could see

a sell-off of government bonds, notably in Italy, which has a huge

public debt, which has elections due before next May, where that could

have disastrous financial and political consequences. We are

running out of time, but you mentioned the elections and events

in Italy. We have also got the German election coming up in a few

weeks and we have got Brexit. All of that context in which Mario Draghi

has got to walk the tightrope. Very difficult. Sure. German elections

and there has always been pressure in Germany, where they don't like

quantitative easing, and there economy is doing well and there is

pressure from them and their allies to wind down sooner rather than

later. Thank you for your time. We are going to be all over this, so

when we get any newsman ECB and that press conference that follows after

them on a trip to the announcement, we will let you know what is going

on. -- the monetary CNN announcements.

Let's take a look at some of the other stories making the news.

President Trump has agreed to a Democratic plan to lift the US

debt limit for three months, to fund the government and rush aid

The president went against Republican leaders who wanted

to extend a debt-limit increase for longer until after the 2018

mid-term elections to avoid giving Democrats leverage.

The US has asked the UN to place an oil embargo on North Korea

and freeze the assets of leader Kim Jong-Un over its

The draft Security Council resolution seen by news agencies

demands not only a ban on oil and gas supplies, but also

Facebook says it has discovered a Russian-funded campaign to promote

divisive social and political messages on its network.

The company said $100,000 was spent on about 3000 ads

over a two-year period, ending in May 2017.

The ads did not back any political figures specifically,

but instead posted on topics including immigration,

We promised you coverage throughout the day and it is already on the

Business Live page. All eyes on ECB of course at the Euro will be very

sensitive today. If it is important to you, keep an eye on the pound

sterling as well as the day progresses. Other stories out there

for the UK economy, including this one about Bovis's performance being

expected, it is on track. And also the UK financial watchdog has closed

its investigation into the insurance firm Police Mutual. Lots of stories

on the Business Live page which we can't squeeze into this programme.

You can see them there. Despite the tough talk,

the White House could be quietly shelving its plans to cancel a free

trade deal with South Korea. It comes as tensions heighten

with North Korea as the UN Our Asia business editor Karishma

Vaswani is in Singapore. Nice to see you. What more can you

tell us? Sally, reports suggest that US President Trump has decided for

now at least to put off the cancellation of the trade deal

between Washington and Seoul. There were tweets coming out early in the

week and comments from the White House that the trade deficit between

South Korea and the United States was at a level which was not

acceptable to Washington. These are unconfirmed reports coming out now.

Only one media outlets reporting so far so we cannot categorically say

this is true. It would make sense, Sally, given the timing of what has

been going on between the United States and North Korea. President

Trump really need the help of South Korea to help resolve the North

Korean crisis so it would make sense if this ends up becoming true. Thank

you. Let's check in with

the financial markets now. stocks moved higher,

pulling away from the previous session's lows after news

of an agreement in Washington to raise the US debt limit helped

restore investors' appetite That deal between Republicans

and Democrats also pushed a look at how European

stocks have opened. On the up. Traders will be eyeing

the results of that key ECB policy meeting later. Now what is ahead on

Wall Street today? Stanley Fischer, the Vice Chair

of the Federal Reserve, A veteran central banker

who helped set the course of modern monetary policy,

Mr Fischer plans to leave The US Central Bank confirmed that

his last day would be October 13th, eight months before his term

was due to expire. Now, it leaves the seven-person

board of governors with as few The Senate Banking Committee

is scheduled to vote later this Thursday on the White House's

nominee, Randal Quarles, to the role Also, watch out for more market

reaction as investors track Meanwhile, traders believe the risk

of a US default have decreased, but they haven't disappeared

entirely. This, of course, after Donald Trump

and top Democrats backed a plan to raise the government's borrowing

limit for just three months. This was part of a broader package

to provide aid for Hurricane Harvey Michelle highlighting the big

stories in the United States. Jane Foley is senior currency

strategist at Rabobank. Talking there about the news of

Stanley Fischer resigning, going sooner than expected. He was

expected to finish his term last year -- next year. He said in his

personal letter that it was personal reasons but we have no more clues.

We do know that there is a difference of opinion between him

and Donald Trump on regulation. After the financial crisis there was

a big move to stop the crisis happening again. The Trump

administration is about getting back some of that regulation. Many

bankers including Stanley Fischer are quite vocal and have been

opposed to this. That is interesting because of the head of the Fed

saying we should not wind back that regulation and her term is coming up

in February. Yes, his own -- hers is ending early next year. She has

other common ground with Donald Trump, meaning she likes interest

rates to be lower for longer. Donald Trump likes the dollar to be weak,

which it is right now, and that might impact on things with Donald

Trump. We have got to fill Stanley Fischer's seat and there are three

other vacancies as well. So there could be a lot going on. Seven

seats. Yes, and he could get control. Your thoughts on the ECB.

Will you be across the Euro and the pound this lunchtime? Yes, the

markets are really watching this event. The ECB does not talk about

the currency specifically. How will he talk it down without talking

about it specifically? It's very clever Andy is a market man and he

knows how to manipulate markets and he might indicate not necessarily

the level but the pace, to try and keep a lid on things. If he doesn't

say anything, it is a green light for it to go up. Thank you. And he

will be coming back with this great story about disrupters in the tech

sector going into traditional banking. And from software to space,

we are also going to be talking about another disrupter, but that is

to do with IT. Mark Shuttleworth will talk

about being a tech disruptor You're with Business

Live from BBC News. Let's talk music. We have it all in

the show today. Space, music, money, everything!

Britain's music industry continues its strong performance

Trade body the BPI says exports were up 11% and 1 in 8 albums bought

Thank you very much for coming on the programme. Which artists in

particular are boosting sales? In 2016, it will not surprise you to

hear, Coldplay, the Rolling Stones, Adele and for very sad reasons David

Bowie. Because of his death, his catalogue around the world prompted

massive demand and interest. This year we are seeing Sam Smith has a

new album out and Ed Sheeran's album has been selling massively globally.

That will be reflected in the figures that we announce at the end

of this year. It is just looking very strong for music exports from

the UK. Is it really looking strong or is it a one off? We had the

tragic death of David Bowie and when it comes to Adele, she relaunched

itself with the first album for quite some years.

We have been seeing constant and steady growth. Since 2000, four .4

billion in exports generated in the world around record labels. The

growth was as a Levenson. This is part of a regular pattern that has

been developing over a number of years. Streaming has been growing.

That has been helping us promote our artists around the world. About a

quarter of their revenues are reinvested. Government has been

helping us as well. They had agreed scheme which has made ?2.2 million

available to support 150 artists, to market themselves all around the

world. This is part of a concerted effort to grow our profile

worldwide, to market ourselves and has helped to make the British music

industry incredibly successful. Apart from the US, we are the

largest exporter of music all around the world. It certainly sounds

exciting for the music industry in the UK. Gennaro Castaldo, thank you

very much indeed. Another story to tell you about. The fund manager

Neil Woodford has posted a video apologising for the really poor

results of his fund apologising to his investors, an interesting way to

make apology. Indeed, watch with interest!

You're watching Business Live - our top story:

The European Central Bank has everyone's attention today as it

grapples with the soaring euro and the future of

What is ECB boss Mario Draghi going to say

We will tell you all about it. Tune in, listen to our radio or look at

our website. Our next guest is considered

one of the world's most He's an outspoken advocate

of open source software, which means that all operating

systems should be free to everyone. By any measure,

Mark Shuttleworth has had He's a proud South African,

and made his first serious foray into entrepreneurship as a student

in Cape Town in 1996, when he founded a cutting edge

internet security firm. That proved such a success

that it was bought by US The proceeds of that

enabled him to set up the Ubuntu operating system,

which is free to all softwar. But his ambitions reaches

further than tech - he's the first African in space,

after joining the International Mark Shuttleworth is with us now.

Good morning, welcome to the programme. Let's start with the

space element. Actually, that came first, 27 years old. Incredible,

going to the International Space Station, tell us all about it. I've

always been fascinated by exploration of all kinds. The

universe out there represents extraordinary opportunity and in

many senses the future for all of us. I had a sense that the space

programmes in the US and Russia were opening up. I had the great

privilege of spending almost a year in Russia, living in Russia,

surrounded by space professionals from all over the world, training

with them and then flying to the International Space Station. And you

funded it by selling that first tech company that you founded in your

garage. I was in a privileged position where I could choose what I

wanted to do. That was a nice way to make a break from what I had done

before and create space to think about the future. So you did that

for a year. We went to space, on the International Space Station and it

was there you formalised you're thinking about what you would do

next? I think everyone who has that experience, who goes away from Earth

and looks back at it, has the realisation that the world is small

and fragile. After that you observe, many astronauts want to be part of

things that have an impact. Being a lover of technology and

entrepreneurship, since open source had been essential to my making

something global, I wanted to make other -- enable other people around

the world to build interesting things. So I created Ubuntu as a way

of making open source easy to consume for businesses, and

scientists. Explain how Ubuntu works and how you as a South African

outside of the sort of closed club of Silicon Valley have provided for

many big names in silicon valley this service? Most people are

familiar with Windows and Ubuntu is like that but it is used in a wide

range of other environments, like the Cloud and intelligent devices,

self driving cars, Smart meters, home routers. The magic of Ubuntu is

it doesn't come from one organisation, it represents the

innovation from thousands of different companies and individuals.

Our job is to pull that together and make it easy to consume. So because

have become a platform... You are making easy to consume and is free

which means you are providing to, something to everyone for free which

other people want to charge for. I assume you made some enemies? Yes,

along the way. We changed people's expectations about how they should

engage with infrastructure. How did you come up with the name? Ubuntu is

an African word, not just South African, it is how people treat each

other really well and that reflects open source really well. We have

some tweets. One says, if I was in space I would help as much as I

could with cancer beating treatments. Astronauts are unsung

heroes and people are not or is aware of their efforts. Do you have

this same view? What was it like in space quest might did you conduct

any experiments? I took four experiments to space. Stem cells, we

took them to space to see what would happen. We found they developed in a

way that was much better for medical treatments. So that inspired a bunch

of research. We had to mother experiments, not all of them

successful. I was a happy guinea pig. White is space such a good

environment? You are a brave man! Why is it such a good environment to

carry out those experiments? It is different, so it challenges your

understanding in interesting ways. Scientists like to find oddities and

curiosities which challenged them to dig deeper. You take things to space

to see if they will behave in unexpected ways. Two viewers have

tweeted saying, I'd probably get sick a lot. Another one has said, I

would probably vomit the entire time up there. What impact did it have

physically? Most people who go to space get motion sickness, it is

like seasickness. But it is a small price to pay. I imagine is not

pleasant being sick in space? No, but you are well trained for the

consequences. So nice to have you on the programme, fascinating. Thank

you for coming in. People must mention the fact... Shuttleworth? It

can't be a coincidence! Thank you very much indeed. Good to have you

on the programme. Let's move onto electric vehicles.

Car maker Jaguar Land Rover is announcing that from 2020 every

new model will be available as an electric vehicle.

JLR boss Ralf Speth explains his electric car strategy.

At the end of the day, Jaguar Land Rover is offering

From 2020 onwards, all of our vehicles will be electrified,

and we're offering a portfolio, a portfolio of products.

Mild hybrid battery electric vehicles,

But I would also like to emphasise that is not the end

Diesel and petrol engines are important and they are state

of the art and contribute to the mobility today.

That was the bass of -- boss of Jaguar Land Rover. We have Jane

back, as it promised. Let's delve into some of the stories. The

founder of Twitter going traditional on us, what is he up to? Another

disruptor. If he traditional or not? He wants a bank licence. He isn't

the first tech company to go for a bank licence. You could say this is

great, the banking industry needs more competition but there is

another element to this. This is about regulation and control of the

regulators. What he wants is not a traditional banking licence but what

they are calling in Utah and industrial loan company. This is a

special banking licence that would allow his company to do other things

as well. This is when regulators begin to get a bit worried, because

they may have less control over all the components. In the financial

arena, technology is massively... It's called Fin Tech. They are

really going for it. Traditional high street banks, anyone in

financial services, they cannot rest on their laurels? This is exactly

the case. The biggest potential disruption could be bit coin.

Regulators becoming very concerned about this. Again, it's about

control. Regulators could lose control of certain parts of the

financial industry. In the worst-case scenario, the money

supply... The central bank's job would be watered down. This story

about Facebook, we mentioned earlier about what was happening during the

election, regarding Facebook. Apparently the advertisers are

saying, Facebook said the advertisers can reach many more

people than it actually can because they don't exist on the US census.

That is right, 25 million more young people. Young people is important

because this is the area that marketers want to get to grips with.

25 million more people in that category, and the 34th, exist on the

census showing. This comes at a time when Facebook is facing a lot of

challenges, Snapchat for example. Young people see as much more

appealing. My teenage children are using Facebook press, may be

Instagram and Snapchat a bit more. There are certain challenges out

there. Just quickly, losing track of time so I might get into trouble.

Saudi Arabia redrafting their transformation plan, launched a year

ago, no surprise they have to curtail it? Oil prices are really

low but they want to bring new forms in for long-term growth. Thank you

very much. Good morning. The frightened about

the weather in the UK, let's look at the Atlantic. All eyes on the

Caribbean as hurricane