:00:00. > :00:00.from "Islamic State" militants, a US military commander says
:00:00. > :00:00.the jihadists are still in control of two-thirds of the city.
:00:00. > :00:07.Those are the latest headlines from BBC World News.
:00:08. > :00:10.Now for the latest financial news with, with Sally Bundock,
:00:11. > :00:18.Global markets remain on edge ahead of the UK Referendu.
:00:19. > :00:22.We get an expert view on the wild swings in currency markets as voters
:00:23. > :00:30.We have a special report on why your vehicle damages
:00:31. > :00:31.the environment more when the temperature
:00:32. > :00:50.In a minute, we'll hear from a farmer in Italy how Brexit
:00:51. > :00:52.would affect him and his country.
:00:53. > :00:58.Today is the final day of campaigning ahead of tomorrows
:00:59. > :01:01.decision on the UK's future in the European Union.
:01:02. > :01:03.Investors, business leaders, central bankers, and politicians,
:01:04. > :01:05.worldwide, have been following every twist and turn causing gyrations
:01:06. > :01:09.The most sensitive has been the currency markets with the pound
:01:10. > :01:11.soaring to a 5.5-month high on Tuesday against the US dollar.
:01:12. > :01:14.Also it was a key part of Janet Yellen's testimony before
:01:15. > :01:21.The head of the US Federal Reserve warning a UK vote to leave
:01:22. > :01:23.the European Union could have serious consequences
:01:24. > :01:33.for financial markets and in turn affect economic growth.
:01:34. > :01:36.With me is Jeremy Stretch, Head of Currency Strategy at CIBC
:01:37. > :01:50.You have been extremely busy. Indeed. Like many of my guests in
:01:51. > :01:56.the past week. Let's talk about the pound. Interesting, yesterday it was
:01:57. > :02:02.soaring, and yet the polls are not in the bag. They aren't saying that
:02:03. > :02:09.remain has it in the bag but it is expected. Last week the Stirling was
:02:10. > :02:14.on a bit of pressure. That character rises strong gains, especially on
:02:15. > :02:22.Monday, with the best movement in eight years. That extended into
:02:23. > :02:26.yesterday morning. Now we have pulled back a bit. Markets are a bit
:02:27. > :02:33.more sanguid about the risks. Central banks globally are very much
:02:34. > :02:39.a tuned to the uncertainties that a Brexit could bring. -- attuned. If
:02:40. > :02:44.these earnings fell after an exit there would be ramifications for
:02:45. > :02:49.other currencies, like the dollar. Talk us through that. The Japanese
:02:50. > :02:55.yen is seemingly going to remain extremely strong. The US dollar as
:02:56. > :02:59.well. Mentioned by Janet Yellen. It has been strengthening. Yet. She
:03:00. > :03:08.mentioned it had been strengthening since the 14, appreciating by 20%.
:03:09. > :03:15.-- 2014. Britain has relied on exports but it has had a dragging
:03:16. > :03:20.effect with productivity. If we saw them exit, the Stirling will fall
:03:21. > :03:27.significantly. But currencies and bilateral. Money flow goes on to
:03:28. > :03:32.other markets if it falls. Including the Japanese yen. It perceived safe
:03:33. > :03:36.haven. That would cause increasing concern for the Japanese
:03:37. > :03:42.authorities. Abenomics has relied on a relatively cheap yen. It will be
:03:43. > :03:49.interesting to see what happens next in terms of what countries do. The
:03:50. > :03:54.G20 summit earlier this year. There was a discussion about currency
:03:55. > :03:59.intervention. It was in the thinking of what people said. The Chinese
:04:00. > :04:04.currency was on the move. Currency wars. In light of this and the
:04:05. > :04:08.strong yen, will be pounds do anything? We have had currency wars
:04:09. > :04:14.mentioned periodically over the last six years. People are discussing it.
:04:15. > :04:20.I think if the Japanese yen is heading back towards 100 against the
:04:21. > :04:27.US dollar than in every the Japanese yen will feel duty-bound to stop the
:04:28. > :04:32.move. They have not been active in the foreign exchange market since
:04:33. > :04:36.2011. If markets are one-sided as Janet Yellen suggested, I think the
:04:37. > :04:44.Japanese will feel it is inevitable that the need to stem the slide. I
:04:45. > :04:50.am meant move. Financial markets globally are watching what is a
:04:51. > :04:57.global issue because of these global ramifications. It will be an
:04:58. > :05:00.interesting 24 hours. It will be. We will talk to you about it again, I
:05:01. > :05:02.am sure. OK now. One major sticking point
:05:03. > :05:04.in the great Brexit They divide the farming community,
:05:05. > :05:08.not just here in the UK, Italian cattle farmer,
:05:09. > :05:11.Fabio Baldassarri, says EU policy has pushed milk prices so low
:05:12. > :05:14.that he will have to sell up He believes a Brexit could spark
:05:15. > :05:18.similar votes in Italy, where anti-EU sentiment
:05:19. > :05:36.is currently running high. TRANSLATION: My name is Fabio. I
:05:37. > :05:39.breed cattle. I think if the UK left the European community, this would
:05:40. > :05:51.cause a domino effect that would give a future to biodiversity in
:05:52. > :05:54.agriculture. We are inundated with meat coming from northern and
:05:55. > :05:59.Eastern Europe with extremely low prices. I am talking about prices
:06:00. > :06:09.lower than 30 cents delivered in the area of Rome when our price of
:06:10. > :06:16.production is above 40 cents. Italy and Europe did not protect us in any
:06:17. > :06:23.way. So, we will have to close our farms. We will be forced to
:06:24. > :06:26.slaughter our animals because we have become no longer competitive in
:06:27. > :06:33.a short time. And, of course, there are many
:06:34. > :06:36.leaders of small and medium size businesses who argue the UK leaving
:06:37. > :06:38.Europe is the best option. To hear all the views,
:06:39. > :06:50.go to the BBC Business Webpage. Please take a look when you have a
:06:51. > :06:53.chance. New research seen by the BBC
:06:54. > :06:55.suggests pollution from many popular diesel cars is much worse when it's
:06:56. > :06:58.colder than 18 degrees outside. It means millions of vehicles
:06:59. > :07:01.could potentially be driving around for most of the year
:07:02. > :07:03.with their pollution controls Testing company Emissions Analytics
:07:04. > :07:06.says it's measured a significant rise in poisonous gas emissions
:07:07. > :07:09.from a wide range of models The SMMT, which represents
:07:10. > :07:12.the industry, says it's all within the rules and it's
:07:13. > :07:15.to stop damage to the engine. More from our transport
:07:16. > :07:36.correspondent, Richard Westcott, It is below 18 degrees for most of
:07:37. > :07:40.the year in Britain. This new research seen by the BBC suggests
:07:41. > :07:45.that millions of popular diesel cars could be driving around with
:07:46. > :07:49.pollution controls partly turned off below that temperature. What is
:07:50. > :07:53.more, it is perfectly legal. Testing company, Emissions Analytics, said
:07:54. > :08:00.it looked that the 100 and 13 different models across 31 different
:08:01. > :08:06.manufacturers. -- 213. On average, about 18 degrees, levels of
:08:07. > :08:10.poisonous gases were 3.6 times over the European limit. Below that
:08:11. > :08:17.temperature, pollution increased to 4.6 times over the limit. The
:08:18. > :08:20.scandal of Volkswagen has ripped the lid off this whole area and people
:08:21. > :08:26.have been investigating in more details. Us and others are
:08:27. > :08:34.unearthing lots of other issues. Loopholes in the regulations that
:08:35. > :08:41.perhaps have been found. They are asked to win down their pollution
:08:42. > :08:43.controls to help the engine. There is suggestion some are taking
:08:44. > :08:49.advantage of the rule because turning it off can improve fuel
:08:50. > :08:54.economy. Can you guarantee they need to do this for engineering reasons?
:08:55. > :09:00.Absolutely. It is about ensuring the engine maintains optimal condition.
:09:01. > :09:04.That means you can get what you expect, the car will start, it will
:09:05. > :09:11.operate smoothly, and there is no long-term damage. Cars have to pass
:09:12. > :09:16.the slightly older emissions test. There are 5.1 million of them on
:09:17. > :09:21.Britain's roads. There are now calls for car companies to come clean
:09:22. > :09:22.about how their pollution systems work.
:09:23. > :09:25.Embattled German auto giant Volkswagen will face the wrath
:09:26. > :09:28.of its shareholders at its annual meeting on Wednesday.
:09:29. > :09:30.Nine months after VW admitted it installed emissions-cheating
:09:31. > :09:31.software into millions of diesel engines worldwide,
:09:32. > :09:34.investors want to know why the German giant is nowhere
:09:35. > :09:36.near drawing a line under this crisis.
:09:37. > :09:38.Shareholders have been vocal about the way VW management has
:09:39. > :09:41.Meanwhile, prosecutors are investigating former VW boss
:09:42. > :09:43.Martin Winterkorn for having allegedly manipulated the market
:09:44. > :09:44.by holding back information about emissions cheating.
:09:45. > :09:59.The market. Different moves going on. The pound against the dollar.
:10:00. > :10:07.And that is the close on Wall Street. Oil above $50 a barrel. See
:10:08. > :10:12.you later.