05/08/2016 World Business Report

Rio set to be the biggest money games in Olympic history -

despite that barrage of bad publicity.

We're going to hear from one of the country's best known bosses -

Plus - rock bottom rates - but what's next from

the Bank of England - as it battles to stave

It is Friday. We have the Friday feeling.

This is a bite-size snapshot of all in the world of business and money.

Lots going on. We start in Brazil,

where as you have been hearing, the Rio 2016 Olympic Games will open

in just a few hours' time. It's a big moment for the host

nation and of course the athletes - but also for the companies

which have spent vast sums sponsoring - buying media rights -

and advertising around the Games. In fact, by any measure,

Rio is set to be the biggest money Let's put it in some

context for you. Back in 2008, the Beijing Olympics

pulled in broadcast rights and corporate sponsorship worth

almost $5.5 billion. That figure was blown away four

years later by the London Games. London 2012 made

a total of $8 billion. Now, the final figures for Rio

2016 are not in yet, but it looks set to top $9.3 billion

in commercial rights - That's despite a barrage of negative

publicity, from the political and economic crisis in Brazil,

to the Zika virus outbreak, to the doping scandal overshadowing

so many sports. One of the companies investing

heavily in Rio 2016 is car It is a major sponsor

of the torch relay, the Games and Paralympic Games,

as well as various athletes - plus it is supplying

all the official cars. It's perhaps no surprise since CEO

Carlos Ghosn is Brazilian-born. And he said he has no regrets

about the millions invested in the Games, even though

the decision was made before Brazil The objective from the beginning was

to give more awareness to the Nissan brand, at a moment where we are

starting out offensive in the country and Latin America. The fact

we took this decision when the market was nearly 3.6 million cars a

year and today it is much nearer 2 million cars a year it changes

nothing. Awareness is the reason for which we are participating. To build

a much higher awareness about our product in a country which without

doubt will continue to be one of the major markets in the world, and

where awareness is still behind some of the top players. What are your

concerns about the global economy with the US slowdown and China as

well, and Brazil in recession? It will be a year of slow growth

globally. We are expecting it. It will not be a surprise. So, yes, the

US market is at a very healthy high level, China will continue to grow

at a lower rate, and the recovery in Europe will continue even though it

will be impacted by Brexit, without doubt, but it will not reverse the

fact that the economy will continue. We are thinking of 1% growth for the

global market for the car market next year than anything us. We are

ready and preparing for it. We're not worried. The big markets are at

a healthy level. Even though we can't count on very strong growth,

in 2017 or 2018. How to specs it and the falling sterling affect your

operations in the UK, especially the Sunderland plant? -- how does

Brexit. We can't talk about impact until we see the status of the UK.

The question of Sunderland, it is a European plant based in the UK. Most

of the production out of Sunderland is exported to Europe. So obviously

for us, the relationship which will prevail to in the UK and Europe is

very important. So the Fiji investment decisions will depend a

lot on yes, the UK is out of Europe, but what will be the new status? --

future. You will see a period where most companies will be waiting to

see what will be the new status, and then they will be making their

decisions about investments. There you go, the boss of Nissan, Carlos

Ghosn. We are also talking

about the Bank of England. It has cut interest rates

to a new record low amid concern about a slowdown in the economy

following the vote to leave down from 0.5% - the first

time rates have been cut The decision is just one of a series

of what the bank called "exceptional Another of the Bank of England's

headline policies will see ?170 billion - that's

around $220 billion - pumped into the economy through

so-called quantitative easing. This is where a central bank creates

electronic money to pump into the economy

via commercial banks. The Bank of England also announced

the biggest ever cut to its growth forecasts for next year -

from 2.3% down to 0.8%. The Bank's governor, Mark Carney,

spoke to the BBC yesterday and explained how the measures

would help to manage the fallout What the bank has been doing and

what the NBC decided to do today is make that process easier and support

this economy. If we had not had acted, output would have been

bowler, unemployment would have been higher, and inflation would not have

gone back to targets that are sustainable. That is our mandate and

what we have to accomplish -- Boer War. We were compelled to act and

acted in a smart way, not just using one instrument. We used multiple

instruments in a way that word mutually reinforcing, and we are

confident we will get through the financial system to businesses and

households to make a real difference. Mark Carney, the boss of

the Bank of England. Bronwyn Curtis is from the Society

of Business Economists. She is also a member of the shadow

Monetary Policy Committee - a group of experts which meet

to monitor the actions Those other people who sit around

the table and make these decisions. Thank you for coming in. Interest

rate cut, not really surprising. But all of these other announcements,

hang on, they are throwing everything at this at the moment.

But this quantitative easing, we have seen it in the past and we have

seen it in many other countries where the central banks pump money,

electronic money, but every time they have done it, they say money is

supposed to get out in the economy and it ends up in the markets. It

doesn't really benefit the average Joe Bloggs. It does end up in the

markets, but this time it is a bit different. It is on this term

funding scheme, which is $100 billion of this quantitative easing,

and let them went close to their bank rate at the Bank of England

has. For the uninitiated, if it means to the commercial banks, they

then lent to the retail banks, which we use? But also to people for

mortgages, companies who are borrowing. So bending at that rate.

He called it smart stimulus. -- mending. He is trying to make sure

that bank margins are not squeeze too much and they can pass it

through at the level he wants. That means the supply of money at a low

level will be good. So that is new. But you still have to have people

who want to borrow. So demand, and is demand there? We have taken a big

hit from Brexit. A lot is about uncertainty. They spoke about how

the economy will be hit, but the uncertainty, are people really going

to borrow? Are companies really going to invest when they don't know

what is going to happen around Brexit? He has done as much as you

can in making sure there is enough money available. I don't think a lot

of this quantitative easing works. It works the first time, back in the

financial crisis, but this uncertainty will go on and on. A

marginal effect, but better than nothing. Talking of uncertainty, was

Mark Carney right in painting a dire picture, saying if we don't do this

now, we are going to have jobs lost. Is he right? Did he take the right

picture or not? He doesn't have a lot of. The data was very bad,

because we had to political uncertainty, we did not have a Prime

Minister, the opposition was in turmoil, and we had Brexit all at

once. We are probably going to improve from that. We will have to

see. I think he fell for their own credibility they had to do as much

as possible. -- felt. A 0.25% cut is not enough. Unfortunately there is

shutting him i.e. We don't have left much of the programme. Is there much

left in the box if things get worse? -- shouting in my ear. Not a lot.

Let me leave you with a couple of other stories.

New York State's financial regulator has requested a meeting

with Goldman Sachs about its fundraising for Malaysian sovereign

wealth fund 1MDB - according to anonymous sources cited

The Wall Street giant's work with 1MDB

government alleged that billions of dollars were diverted

for the personal use of 1MDB officials,

Goldman helped fundraise $6.5 billion in three bond sales in 2012

and 2013 to invest in energy projects and real estate to boost

I don't know about that! Mature you the markets. I need new glasses. US

jobs numbers. Everybody waiting for that today. A very important number.

I will be back with James to look at some of the newspapers around the

world. Large private foster agencies have

been criticised for poaching foster carers by offering them up to three

thousand pounds to work for them The Association of Directors

of Children's Services says that some agencies then charge councils

almost double the amount