:00:00. > :00:00.eight years and faces arrest from police. I don't know what is going
:00:00. > :00:15.on! Sally does... LAUGHTER. Mixed messages from the Fed
:00:16. > :00:17.send global markets We'll decipher if there will be
:00:18. > :00:31.a rate rise in the US next week. Ford tries to overtake its rivals
:00:32. > :00:35.with their latest driverless The fearless Michelle
:00:36. > :00:50.Fleury went for a spin. Has you could tell, that was not
:00:51. > :00:53.Michelle at the wheel are she will, however, be driving a prototype.
:00:54. > :00:55.Also in the programme: We'll be looking at why China's
:00:56. > :00:58.infrastructure spend worth billions of dollars could be doing more
:00:59. > :01:07.confusion at the top - a fog of uncertainty has descended
:01:08. > :01:10.over the future of the world's largest economy with those pulling
:01:11. > :01:12.the economic leavers now in open conflict.
:01:13. > :01:16.In the last 24 hours an influential member of the board that sets US
:01:17. > :01:19.interest rates has suggested a rate rise might damage the economy.
:01:20. > :01:21.Her comments directly contradict several Fed officials who have
:01:22. > :01:23.recently suggested the economic conditions justified
:01:24. > :01:25.considering another increase in rates this month.
:01:26. > :01:27.Speaking in Chicago, Lael Brainard said the US central
:01:28. > :01:32.bank should avoid moves to "tighten policy pre-emptively."
:01:33. > :01:34.This seemed to clash with Federal Reserve Bank
:01:35. > :01:36.of Boston President Eric Rosengren comments on Friday.
:01:37. > :01:39.He said "a reasonable case can be made" for raising rates sooner
:01:40. > :01:47.And if you're wondering how much words matter,
:01:48. > :01:50.just look at the last three trading days on the Dow,
:01:51. > :01:53.the main stock market in the US reacted swiftly to those
:01:54. > :02:04.Two of the key reasons why: Well, raising the cost of borrowing
:02:05. > :02:07.in the US will mean higher debt repayments for many emerging market
:02:08. > :02:10.governments and businesses around the world, as the amount owed
:02:11. > :02:14.And with the prospect of higher interest rates in America,
:02:15. > :02:17.this is attractive to international investors who are hungry for better
:02:18. > :02:25.returns on their investment capital so money will be headed to the US
:02:26. > :02:28.and away from the rest of the world. With me to discuss this
:02:29. > :02:33.is Jeremy Stretch, head of currency strategy at CIBC World Markets.
:02:34. > :02:42.Good morning, Jeremy. So, next week, will they or won't they? Well, there
:02:43. > :02:47.are many reasons why they should raise rates, we have seen that over
:02:48. > :02:52.the course of past months and, indeed, 12 months back in December
:02:53. > :02:57.2015 we could have had this same debate arguing about whether they
:02:58. > :03:01.should tighten rates. Janet Yellen found a reason not to, talking about
:03:02. > :03:10.global decisions, and I suspect we will see something similar this time
:03:11. > :03:14.around. I think the Fed will pass this time around and we will be
:03:15. > :03:18.rather reminiscent of 2015 looking for a December rate rise. Do you
:03:19. > :03:25.think the US election happening early November is one reason white
:03:26. > :03:31.-- why they might put it back? It is possible, interest rates have been
:03:32. > :03:34.incredibly politicised over recent months, or at least that has been
:03:35. > :03:37.the presumption of politicisation. Donald Trump has been critical of
:03:38. > :03:43.the Federal Reserve over the last couple of months, talking about
:03:44. > :03:46.reasons why they have been reluctant to raise rates from a political
:03:47. > :03:50.standpoint, which I don't think is true, though there have been
:03:51. > :03:53.accusations. I don't think the Fed would like to bring themselves into
:03:54. > :03:57.the middle of the political debate as well as finding reasons to hold
:03:58. > :04:01.off for now. There is even more attention on what the Fed is doing
:04:02. > :04:06.this month because of what was said last week by Mario Draghi and also
:04:07. > :04:10.reports that the central bank of Japan is less likely to stimulate
:04:11. > :04:14.more, so it is these three central banks and what they are doing, it is
:04:15. > :04:20.all in focus right now, which is why markets are so sensitive.
:04:21. > :04:23.Absolutely, going back to the chart they showed, it is the confluence of
:04:24. > :04:29.these central banks coming together, so while we are fixated on what the
:04:30. > :04:37.Federal Reserve will do, we have the Bank of Japan's reviewed on the same
:04:38. > :04:41.day, and they have been injecting enormous amount of liquidity into
:04:42. > :04:45.the markets, in the same way the ECB have been doing. The ECB didn't
:04:46. > :04:53.enhance the programme on Thursday. That was a little bit of a surprise.
:04:54. > :04:57.And indeed it was not discussed, the expansion, at that time, and has
:04:58. > :05:03.provided uncertainty, which for financial markets is a reason why
:05:04. > :05:07.investors are looking to pull back. Away from the holding positions into
:05:08. > :05:14.the uncertain period. As a consequence, it is causing equity
:05:15. > :05:19.markets to be destabilised. Thank you very much indeed, Jeremy. We
:05:20. > :05:24.shall keep a close eye on the Fed and what it does next week, but for
:05:25. > :05:26.now we will have a break from central bank action.
:05:27. > :05:30.US auto giant Ford says you will be able to buy from them a self-driving
:05:31. > :05:35.The company that bought to the world the first mass produced car now
:05:36. > :05:38.wants to be seen again as a cutting edge tech company.
:05:39. > :05:42.But Ford has a long way to go if it's to catch up with the likes
:05:43. > :05:45.Michelle Fleury reports from Michigan where Ford
:05:46. > :05:53.is testing its most advanced prototype.
:05:54. > :06:03.I am Michelle, this is Andrew. I am also Andrew. That is easy. I and
:06:04. > :06:08.your engineer. The car will drive autonomously. He won't be doing
:06:09. > :06:12.anything. It will drive through this campus. It is not staged, it is a
:06:13. > :06:17.10,000 person campus with people doing what they do and drivers doing
:06:18. > :06:20.what they do. That is the level of capability we have right now. Fortt
:06:21. > :06:25.is keen to prove it can do what Silicon Valley can. Uber is
:06:26. > :06:31.launching a self driving taxi service in Pittsburgh any day. It
:06:32. > :06:36.feels like being a passenger in an ordinary car. I can't really tell
:06:37. > :06:41.the difference. It has been pretty unremarkable except when I peer over
:06:42. > :06:46.Gus's shoulders and notice he doesn't have his hands on the wheel.
:06:47. > :06:51.Ford has pledged there won't be a wheel or even gas and brake pedals
:06:52. > :06:55.in 2021. And the state of those lives is why we are still stopped
:06:56. > :07:00.right now, so we are waiting for them to go out. Light beams and
:07:01. > :07:05.cameras are used to read the environment around the car. So, hang
:07:06. > :07:10.on a second, there is a truck right up there. We are slowing down, and
:07:11. > :07:14.there is a stop sign, so we are going to stop. You promise your foot
:07:15. > :07:19.wasn't on the break? No. I wouldn't call it a wild ride but that is not
:07:20. > :07:22.bad when you are talking about driverless cars on the road. The
:07:23. > :07:30.question of safety has come up again when a driver was killed recently
:07:31. > :07:36.using Tesla's autopilot feature. The problem is the technology is moving
:07:37. > :07:40.faster than the laws. This Republican senator is behind the
:07:41. > :07:44.push to make Michigan the first US state where it is legal to operate a
:07:45. > :07:49.self driving car without a human being behind the wheel. Right now
:07:50. > :07:53.our state doesn't allow automated vehicles on the road unless they are
:07:54. > :07:58.being tested, so we have to change that component. Then there is cyber
:07:59. > :08:05.security component, which is a very important part of it, just due to
:08:06. > :08:09.the fact that if your home computer is hacked into while you are sitting
:08:10. > :08:13.at a desk, if your car is hacked into driving 70 mph, that could be
:08:14. > :08:18.catastrophic for not only you but for everybody around you. Here in
:08:19. > :08:23.the home of America's car industry the hope is driverless car
:08:24. > :08:24.technology will be as big as Henry Ford's creation of the assembly
:08:25. > :08:28.line. China's government is spending more
:08:29. > :08:31.but is it getting value for money? The Asian powerhouse spends more
:08:32. > :08:33.on infrastructure each year than North America and
:08:34. > :08:40.Western Europe combined. However a report from
:08:41. > :08:42.Oxford University says more than half of that spending is not
:08:43. > :08:46.generating economic value. Official figures out today show
:08:47. > :08:48.Chinese government spending has risen by close to 13% in the first
:08:49. > :08:52.eight months of this year. However revenues have only risen
:08:53. > :08:59.by 6% over the same period. Research done by Oxford University's
:09:00. > :09:01.Said Business School, says infrastructure cost overruns
:09:02. > :09:04.have equalled nine point two trillion dollars, that's
:09:05. > :09:05.approximately one-third of China's Rico Hizon is in our Asia Business
:09:06. > :09:10.Hub. So, is China getting
:09:11. > :09:34.enough bang for its buck? That is right. It seems they are not
:09:35. > :09:39.getting maximum output from their infrastructure projects. One problem
:09:40. > :09:43.is the mainland keeps building roads, railways and other
:09:44. > :09:48.development projects but many of them are underutilised. Traffic use
:09:49. > :09:53.of major road projects represent two extremes. Two thirds of roads have
:09:54. > :10:00.low use while one third are congested. This hampers economic
:10:01. > :10:05.growth. Unless China shifts to fewer quality infrastructure investments,
:10:06. > :10:10.it is headed for an infrastructure led national and economic crisis.
:10:11. > :10:14.Also we should take into account that road and rail projects are
:10:15. > :10:17.built two years quicker compared to first world western countries, which
:10:18. > :10:23.raises the issue of cost, safety and the environment. OK, thanks a lot.
:10:24. > :10:30.That is World Business Report. I will see you soon.
:10:31. > :10:33.Sex education classes should be compulsory for all primary school
:10:34. > :10:36.pupils from the age of four, according to a group of MPs.
:10:37. > :10:39.The Women and Equalities Committee believes starting lessons