:00:00. > :00:20.Rio set to be the biggest money games in Olympic history -
:00:21. > :00:23.despite that barrage of bad publicity.
:00:24. > :00:27.We're going to hear from one of the country's best known bosses -
:00:28. > :00:31.Plus - rock bottom rates - but what's next from
:00:32. > :00:33.the Bank of England - as it battles to stave
:00:34. > :00:51.It is Friday. We have the Friday feeling.
:00:52. > :00:58.This is a bite-size snapshot of all in the world of business and money.
:00:59. > :01:00.Lots going on. We start in Brazil,
:01:01. > :01:03.where as you have been hearing, the Rio 2016 Olympic Games will open
:01:04. > :01:06.in just a few hours' time. It's a big moment for the host
:01:07. > :01:09.nation and of course the athletes - but also for the companies
:01:10. > :01:12.which have spent vast sums sponsoring - buying media rights -
:01:13. > :01:15.and advertising around the Games. In fact, by any measure,
:01:16. > :01:19.Rio is set to be the biggest money Let's put it in some
:01:20. > :01:25.context for you. Back in 2008, the Beijing Olympics
:01:26. > :01:28.pulled in broadcast rights and corporate sponsorship worth
:01:29. > :01:32.almost $5.5 billion. That figure was blown away four
:01:33. > :01:35.years later by the London Games. London 2012 made
:01:36. > :01:40.a total of $8 billion. Now, the final figures for Rio
:01:41. > :01:44.2016 are not in yet, but it looks set to top $9.3 billion
:01:45. > :01:47.in commercial rights - That's despite a barrage of negative
:01:48. > :01:54.publicity, from the political and economic crisis in Brazil,
:01:55. > :01:57.to the Zika virus outbreak, to the doping scandal overshadowing
:01:58. > :02:03.so many sports. One of the companies investing
:02:04. > :02:06.heavily in Rio 2016 is car It is a major sponsor
:02:07. > :02:11.of the torch relay, the Games and Paralympic Games,
:02:12. > :02:13.as well as various athletes - plus it is supplying
:02:14. > :02:20.all the official cars. It's perhaps no surprise since CEO
:02:21. > :02:26.Carlos Ghosn is Brazilian-born. And he said he has no regrets
:02:27. > :02:34.about the millions invested in the Games, even though
:02:35. > :02:48.the decision was made before Brazil The objective from the beginning was
:02:49. > :02:52.to give more awareness to the Nissan brand, at a moment where we are
:02:53. > :02:56.starting out offensive in the country and Latin America. The fact
:02:57. > :03:01.we took this decision when the market was nearly 3.6 million cars a
:03:02. > :03:05.year and today it is much nearer 2 million cars a year it changes
:03:06. > :03:09.nothing. Awareness is the reason for which we are participating. To build
:03:10. > :03:14.a much higher awareness about our product in a country which without
:03:15. > :03:20.doubt will continue to be one of the major markets in the world, and
:03:21. > :03:25.where awareness is still behind some of the top players. What are your
:03:26. > :03:29.concerns about the global economy with the US slowdown and China as
:03:30. > :03:33.well, and Brazil in recession? It will be a year of slow growth
:03:34. > :03:41.globally. We are expecting it. It will not be a surprise. So, yes, the
:03:42. > :03:47.US market is at a very healthy high level, China will continue to grow
:03:48. > :03:52.at a lower rate, and the recovery in Europe will continue even though it
:03:53. > :03:56.will be impacted by Brexit, without doubt, but it will not reverse the
:03:57. > :04:02.fact that the economy will continue. We are thinking of 1% growth for the
:04:03. > :04:06.global market for the car market next year than anything us. We are
:04:07. > :04:10.ready and preparing for it. We're not worried. The big markets are at
:04:11. > :04:19.a healthy level. Even though we can't count on very strong growth,
:04:20. > :04:24.in 2017 or 2018. How to specs it and the falling sterling affect your
:04:25. > :04:29.operations in the UK, especially the Sunderland plant? -- how does
:04:30. > :04:34.Brexit. We can't talk about impact until we see the status of the UK.
:04:35. > :04:40.The question of Sunderland, it is a European plant based in the UK. Most
:04:41. > :04:46.of the production out of Sunderland is exported to Europe. So obviously
:04:47. > :04:51.for us, the relationship which will prevail to in the UK and Europe is
:04:52. > :04:58.very important. So the Fiji investment decisions will depend a
:04:59. > :05:03.lot on yes, the UK is out of Europe, but what will be the new status? --
:05:04. > :05:08.future. You will see a period where most companies will be waiting to
:05:09. > :05:14.see what will be the new status, and then they will be making their
:05:15. > :05:15.decisions about investments. There you go, the boss of Nissan, Carlos
:05:16. > :05:18.Ghosn. We are also talking
:05:19. > :05:20.about the Bank of England. It has cut interest rates
:05:21. > :05:23.to a new record low amid concern about a slowdown in the economy
:05:24. > :05:26.following the vote to leave down from 0.5% - the first
:05:27. > :05:33.time rates have been cut The decision is just one of a series
:05:34. > :05:39.of what the bank called "exceptional Another of the Bank of England's
:05:40. > :05:45.headline policies will see ?170 billion - that's
:05:46. > :05:49.around $220 billion - pumped into the economy through
:05:50. > :05:52.so-called quantitative easing. This is where a central bank creates
:05:53. > :05:55.electronic money to pump into the economy
:05:56. > :06:03.via commercial banks. The Bank of England also announced
:06:04. > :06:06.the biggest ever cut to its growth forecasts for next year -
:06:07. > :06:13.from 2.3% down to 0.8%. The Bank's governor, Mark Carney,
:06:14. > :06:21.spoke to the BBC yesterday and explained how the measures
:06:22. > :06:40.would help to manage the fallout What the bank has been doing and
:06:41. > :06:45.what the NBC decided to do today is make that process easier and support
:06:46. > :06:50.this economy. If we had not had acted, output would have been
:06:51. > :06:52.bowler, unemployment would have been higher, and inflation would not have
:06:53. > :06:57.gone back to targets that are sustainable. That is our mandate and
:06:58. > :07:02.what we have to accomplish -- Boer War. We were compelled to act and
:07:03. > :07:06.acted in a smart way, not just using one instrument. We used multiple
:07:07. > :07:10.instruments in a way that word mutually reinforcing, and we are
:07:11. > :07:13.confident we will get through the financial system to businesses and
:07:14. > :07:16.households to make a real difference. Mark Carney, the boss of
:07:17. > :07:18.the Bank of England. Bronwyn Curtis is from the Society
:07:19. > :07:20.of Business Economists. She is also a member of the shadow
:07:21. > :07:23.Monetary Policy Committee - a group of experts which meet
:07:24. > :07:33.to monitor the actions Those other people who sit around
:07:34. > :07:39.the table and make these decisions. Thank you for coming in. Interest
:07:40. > :07:44.rate cut, not really surprising. But all of these other announcements,
:07:45. > :07:48.hang on, they are throwing everything at this at the moment.
:07:49. > :07:51.But this quantitative easing, we have seen it in the past and we have
:07:52. > :07:56.seen it in many other countries where the central banks pump money,
:07:57. > :08:01.electronic money, but every time they have done it, they say money is
:08:02. > :08:04.supposed to get out in the economy and it ends up in the markets. It
:08:05. > :08:10.doesn't really benefit the average Joe Bloggs. It does end up in the
:08:11. > :08:22.markets, but this time it is a bit different. It is on this term
:08:23. > :08:26.funding scheme, which is $100 billion of this quantitative easing,
:08:27. > :08:31.and let them went close to their bank rate at the Bank of England
:08:32. > :08:36.has. For the uninitiated, if it means to the commercial banks, they
:08:37. > :08:40.then lent to the retail banks, which we use? But also to people for
:08:41. > :08:45.mortgages, companies who are borrowing. So bending at that rate.
:08:46. > :08:51.He called it smart stimulus. -- mending. He is trying to make sure
:08:52. > :08:55.that bank margins are not squeeze too much and they can pass it
:08:56. > :08:59.through at the level he wants. That means the supply of money at a low
:09:00. > :09:04.level will be good. So that is new. But you still have to have people
:09:05. > :09:10.who want to borrow. So demand, and is demand there? We have taken a big
:09:11. > :09:16.hit from Brexit. A lot is about uncertainty. They spoke about how
:09:17. > :09:20.the economy will be hit, but the uncertainty, are people really going
:09:21. > :09:24.to borrow? Are companies really going to invest when they don't know
:09:25. > :09:27.what is going to happen around Brexit? He has done as much as you
:09:28. > :09:32.can in making sure there is enough money available. I don't think a lot
:09:33. > :09:38.of this quantitative easing works. It works the first time, back in the
:09:39. > :09:41.financial crisis, but this uncertainty will go on and on. A
:09:42. > :09:50.marginal effect, but better than nothing. Talking of uncertainty, was
:09:51. > :09:55.Mark Carney right in painting a dire picture, saying if we don't do this
:09:56. > :10:00.now, we are going to have jobs lost. Is he right? Did he take the right
:10:01. > :10:09.picture or not? He doesn't have a lot of. The data was very bad,
:10:10. > :10:13.because we had to political uncertainty, we did not have a Prime
:10:14. > :10:17.Minister, the opposition was in turmoil, and we had Brexit all at
:10:18. > :10:22.once. We are probably going to improve from that. We will have to
:10:23. > :10:29.see. I think he fell for their own credibility they had to do as much
:10:30. > :10:36.as possible. -- felt. A 0.25% cut is not enough. Unfortunately there is
:10:37. > :10:40.shutting him i.e. We don't have left much of the programme. Is there much
:10:41. > :10:49.left in the box if things get worse? -- shouting in my ear. Not a lot.
:10:50. > :10:50.Let me leave you with a couple of other stories.
:10:51. > :10:53.New York State's financial regulator has requested a meeting
:10:54. > :10:55.with Goldman Sachs about its fundraising for Malaysian sovereign
:10:56. > :10:57.wealth fund 1MDB - according to anonymous sources cited
:10:58. > :11:00.The Wall Street giant's work with 1MDB
:11:01. > :11:05.government alleged that billions of dollars were diverted
:11:06. > :11:08.for the personal use of 1MDB officials,
:11:09. > :11:16.Goldman helped fundraise $6.5 billion in three bond sales in 2012
:11:17. > :11:21.and 2013 to invest in energy projects and real estate to boost
:11:22. > :11:49.I don't know about that! Mature you the markets. I need new glasses. US
:11:50. > :11:55.jobs numbers. Everybody waiting for that today. A very important number.
:11:56. > :11:55.I will be back with James to look at some of the newspapers around the
:11:56. > :11:58.world. Large private foster agencies have
:11:59. > :12:09.been criticised for poaching foster carers by offering them up to three
:12:10. > :12:12.thousand pounds to work for them The Association of Directors
:12:13. > :12:16.of Children's Services says that some agencies then charge councils
:12:17. > :12:20.almost double the amount