:00:00. > :00:15.Keeping the European project together -
:00:16. > :00:18.Merkel, Hollande and Renzi meet to discuss their gameplan
:00:19. > :00:20.and the reverberations following the UK's decision
:00:21. > :00:29.And with the Rio Olympics over, is it worth it for the host cities.
:00:30. > :00:32.And with the Rio Olympics over, is it worth it for the host cities?
:00:33. > :00:36.We take a look at the legacy of the games in a few
:00:37. > :00:44.Welcome to World Business Report, I'm Sally Bundock.
:00:45. > :00:46.In a minute we'll take a look at the policies
:00:47. > :00:51.of India's newly appointed Central Bank governor.
:00:52. > :00:54.But first, the German Chancellor - French President and Prime Minister
:00:55. > :00:57.of Italy are meeting today to discuss the future of Europe,
:00:58. > :00:59.following Britain's decision to leave the Europe Union.
:01:00. > :01:02.This is the second set of talks between the premiers
:01:03. > :01:04.of the eurozone's 3 largest economies since Britain's shock vote
:01:05. > :01:11.So what's at stake for Europe following Brexit?
:01:12. > :01:14.The UK is the world's 5th largest economy, and one of the EU's biggest
:01:15. > :01:16.contributors and until it formally leaves will keep paying
:01:17. > :01:24.Last year the UK's net contribution was around $11 billion.
:01:25. > :01:26.Germany's finance ministry has already hinted its contribution may
:01:27. > :01:29.have to rise by $2.5 billion when Britain leaves.
:01:30. > :01:33.If the UK-EU divorce proceedings become protracted and acrimonious,
:01:34. > :01:36.economic growth for both sides will be affected.
:01:37. > :01:41.Uncertainty is likely to have a negative impact
:01:42. > :01:43.on investment decisions - from financial services
:01:44. > :01:46.Here in the UK infrastructure spending has already declined
:01:47. > :01:54.With me is Holger Schmieding, Chief Economist at Berenberg Bank.
:01:55. > :02:07.Good morning. Good to see you. This meeting today on a beautiful island
:02:08. > :02:12.off the coast of Naples, Italy is hosting- for Matteo Renzi it is very
:02:13. > :02:18.important. It is important for Matteo Renzi to be seen to be a
:02:19. > :02:23.leader moving Europe forward. He has to fight a referendum later this
:02:24. > :02:29.year where his political future is at stake, it is about constitutional
:02:30. > :02:34.reform. Any impression that Italy is really among the big powers of
:02:35. > :02:40.Europe, deciding the future of the club, is important and also it is
:02:41. > :02:45.nice to have the three discussing what is next. Stability in Italy is
:02:46. > :02:52.very important to the European Union. Merkel and alarmed keen not
:02:53. > :03:01.to see a crisis in Italy. -- Francois Hollande. Talking about a
:03:02. > :03:05.better Europe, what are some of the issues they will discuss? The first
:03:06. > :03:13.issue is do we need fundamental change? The answer to that is a bit
:03:14. > :03:19.yes are not too much. Much of the EU is actually working and to get 27
:03:20. > :03:24.countries to agree to fundamental change is very, very difficult so we
:03:25. > :03:27.are likely to see, in the end, modest changes, basically
:03:28. > :03:35.downgrading a few functions of the European Commission, strengthening
:03:36. > :03:40.the European Union that we are not going to see dramatic changes which
:03:41. > :03:45.would have to be ratified by all 27 countries which could be difficult.
:03:46. > :03:54.In terms of the money matters, the economics, for Germany and France,
:03:55. > :03:59.they have elections and also the Netherlands. Concern about how that
:04:00. > :04:07.will go. What will they say in terms of spending and how the money is
:04:08. > :04:14.spread around. Italy wants more spending as does France for Germany
:04:15. > :04:19.does not. It is a more flexible interpretation of the existing rule
:04:20. > :04:24.and we have seen that in action in the sense that Spain and Portugal
:04:25. > :04:29.got away with missing the fiscal targets without having to pay a fine
:04:30. > :04:34.and we would like to see more like that specially for countries like
:04:35. > :04:40.Italy. It means implementing and it would likely allow him in practice
:04:41. > :04:44.to run a bigger budget deficit, without them taking a decision
:04:45. > :04:48.today, I think they will signal Europe is moving in the direction
:04:49. > :04:53.that there is more flexibility within the existing route rather
:04:54. > :04:59.than tearing up the rulebook and creating a new one. An impression
:05:00. > :05:06.that Europe is steel on track. Brexit is much more a British issue.
:05:07. > :05:15.After all, they are a large entity but the future needs to be discussed
:05:16. > :05:20.after the Brexit. If we get any news out of that an official meeting with
:05:21. > :05:21.those three key leaders will keep you informed.
:05:22. > :05:24.A few hours ago, the lights went out on Brazil's iconic Maracana Stadium
:05:25. > :05:27.as Rio de Janeiro passed on the Olympic flame to the next
:05:28. > :05:31.Some experts estimate that the Olympics cost Brazilian
:05:32. > :05:34.taxpayers over $15bn, but what's left for the city
:05:35. > :05:38.now that the competition has come to an end?
:05:39. > :05:43.BBC News has been all around the world to look at life
:05:44. > :05:53.after the games - we start in Beijing.
:05:54. > :06:03.The Beijing games may have been the most expensive ever hosted but there
:06:04. > :06:07.is arguably little legacy to show for it. Some of the iconic
:06:08. > :06:13.infrastructure remains that the birds best and the water cube- Ereck
:06:14. > :06:24.question as to how well used they are. Nor has there been a boost to
:06:25. > :06:31.sporting fields and open space. -- the question is. The real Agassi is
:06:32. > :06:38.a symbolic one. The marking of the arrival on the global stage of a new
:06:39. > :06:46.superpower. -- the real legacy. And some of that some of that lingers.
:06:47. > :06:50.For use on it was London. Apart from the weather pretty much everything
:06:51. > :06:54.else has become unrecognisable. Participation rates in athletics,
:06:55. > :07:01.and especially for cycling, have soared since the games. The Olympic
:07:02. > :07:06.Stadium has been transformed into the West Ham United football club in
:07:07. > :07:11.Stratford has become a shopping mecca where tens of thousands of
:07:12. > :07:15.homes are being built but some say it has come at a huge cost at a time
:07:16. > :07:26.when public finances could least afford it. Residents being priced
:07:27. > :07:29.out of the house markets. Many of the legacy projects that were
:07:30. > :07:34.promised to Rio residents were not delivered. A cleaner environment and
:07:35. > :07:39.better housing is for the poor but something has changed stop there are
:07:40. > :07:46.better transport lanes and these new areas that is supposed to attract
:07:47. > :07:53.future. Some complained that many opportunities went is. The
:07:54. > :07:56.Paralympics kicks off on the seventh of September so of course there will
:07:57. > :07:57.be much more from Rio. After months of speculation,
:07:58. > :08:00.the Indian government has appointed this man - Urjit Patel -
:08:01. > :08:02.to replace Raghuram Rajan as the next governor
:08:03. > :08:04.of India's Central Bank. Well he is very well known
:08:05. > :08:11.at the central bank. He is currently deputy
:08:12. > :08:16.governor at the Reserve Bank He's an economist who
:08:17. > :08:19.did his PhD at Yale UniversityAnd previously he has
:08:20. > :08:23.worked with the International And like the man currently
:08:24. > :08:26.in the job he has a reputation for being a warrior
:08:27. > :08:29.on inflation - who believes in keeping rates high to keep
:08:30. > :08:32.the cost of living under control. So what are some of the big issues
:08:33. > :08:51.the new governor will face Lovely to see you. The guessing game
:08:52. > :08:57.is over. Tell us more? The guessing game is over. I would not say it has
:08:58. > :09:04.come as a surprise. He was in the race but when selection processes
:09:05. > :09:12.were on the other big names, the chief Economist, the head of India's
:09:13. > :09:17.largest banks. Many are seeing this as a signal that they want someone
:09:18. > :09:25.who is known all his work within the central bank but also who will keep
:09:26. > :09:32.his focus only on the central bank unlike his predecessor. He was known
:09:33. > :09:40.to comment on issues outside the central bank. Urjit Patel has given
:09:41. > :09:43.one speech and one interview. He shies away from speaking in public
:09:44. > :09:47.and that might be something that went in his favour because the
:09:48. > :09:54.government wants someone who will focus entirely on the job and
:09:55. > :09:58.nothing else. That wraps up business report. See you then when we look at
:09:59. > :10:07.the headlines. As ballot papers for the Labour
:10:08. > :10:09.leadership contest are sent out from this morning -
:10:10. > :10:13.the Mayor of London - Sadiq Khan -