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tv   World Business Report  BBC News  September 7, 2017 5:30am-5:46am BST

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this is bbc news. the headlines: two small caribbean islands have been flattened by hurricane irma, which is leaving a trail of devastation across the region. both st martin and barbuda have experience what's being described as unprecedented damage. facebook has said it's handing over to the us special prosecutor, robert mueller, evidence of a russian—funded campaign to promote divisive social and political messages during last year's american presidential election. excited crowds have greeted pope francis on the first papal visit to colombia in three decades. the pope has said his visit is a plea for lasting peace following last year's accord between the government and fa rc rebels. tennis, and roger federer has been knocked out of the us open. he lost in four sets to argentina'sjuan martin del potro in the quarter—finals at flushing meadows. he will now go on to play rafael nadal in the semi—finals. now it's time for
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world business report. draghi's dilemma. the soaring euro poses a new problem for the european central bank as it debates when to wind down its massive stimulus programme. plus, high aspirations — we meet the pharma chief who's pushing cannabis as the answer to america's opioid addiction crisis. welcome to world business report. i'm sally bundock. also in the programme, the us is said to seek a ban on crude oil to north korea. details in a moment. but first, we start in frankfurt, where in a few hours‘ time
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the european central bank holds its latest policy meeting. the big question — when will it begin to raise interest rates from their historic lows, and start unwinding the massive economic stimulus programme that's been in place since the financial crisis? some say it's about time. but it's a big dilemma for ecb chief mario draghi. let's show you why. the eurozone economy is in much better shape. it's growing atjust over 2% a year. and the recovery is broad, including weaker nations such as greece and italy. prices are also rising. so called core inflation, which strips out volatile elements like fuel and food, hit 1.2% last month. the overall rate was 1.5%, but that's still below the ecb's 2% target. and the recovery‘s partly down to this, the $2.1; trillion dollars the ecb's pumped into the economy
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through quantitative easing. in other words, creating new money and using it to buy up bonds. critics argue this flood of money is creating a bubble on stock markets and other assets. others warn scaling it back too quickly could plunge the bloc back into crisis. europe's recovery has also caused this. a surge in the euro, which is up almost 13% against the us dollar this year. tightening monetary policy could boost the currency even further. translation: the headline should be, something needs to change, on the condition that everything stays the same. mr draghi has mastered a fine balancing act. he wants to change something because we do not need that massive lavish monitor very environment any more, but he also knows that if he goes one centimetre
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too far he could destroy the heart of the financial markets, business activity, the debt systems of europe, and he cannot do that either. —— lavish monetary environment. so we will continue to have a lavish monetary policy and much more sweet talking of the markets by mr draghi. thanos vamvakidis is head of 6—10 foreign exchange strategy at bank of america merrill lynch. nice to see you. good morning. such anticipated meeting. it will be watched around the world, across financial markets. that will happen? we don't expect any policy announcements in this meeting. however, draghi will say that in the weeks ahead they will start with the future of that programme in december, so most likely he will flag that we get those decisions in october. but in this meeting, where they have to present their new inflation projections, and older inflation projections, and older inflation has increased this year, because of the stronger euro they
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have to revise their inflation projections downwards, which actually suggest is that we have to continue with quantitative easing as much as possible. and that is what the ecb has to do, it is not looking at economic growth or unemployment, it is the inflation figure that it has to sort of stick to, as it were. just explain the limitations on mario draghi and what he can do, because he can only do quantitative easing. long, can't you? —— easing for so long. that is right. it is a tight corner. a cannot buy more than 33% from each issue of the bonds, or more from every country more than the weight of its participation in that country to the ecb capital. if you do the calculation, the quantitative easing programme would have to end sometime in the first half of next year because the ecb would run out of german and spanish
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bonds to buy. what does that mean for what it can do next? this is the problem with central banks at the moment, many of them have run out of tools. definitely they have to reduce their monthly purchases to be able to stretch oe as much as possible next year, but at some point, oe will have to ends next year. they do not want to reduce those policy rates further because they are already in deep negative territory. what they can do is strengthen the four quarters guidance that interest rates will remain low until inflation is under the target of 2%. what about the euro in the meantime? if the euro continues to strengthen and be very strong versus the dollar and the pound and other currencies, how will that be handled? that is a problem for the ecb. the euro now is close to its long—term equilibrium, but it has overshot the data. if draghi cannot persuade markets that they have the policy tools to meet that inflation target, there is the risk the euro will strengthen much more, dragging the ecb further away from
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the inflation target. so although he does not want to be seen as directly intervening in the market, today he has to acknowledge that the strong euro suggests risks to the inflation outlook, which they have to address. we will be watching very closely. thank you for coming in. we'll make sure we update due later today as we get news from the decision and the press c0 nfe re nce get news from the decision and the press conference that follows, conducted by mario draghi. we are also in the us, where nearly 100 people a day die from opioid drug overdoses. most addicts start with legally prescribed medicines for conditions like chronic pain. now a canadian drug company is developing a way of treating these conditions using medication based on cannabis, in the hope it will reduce the level of opioid prescriptions written each year. the man in charge is uniquely qualified — he used to run the firm behind america's best known opioid medicine, oxycontin. he told michelle fleury how huge the market is. somewhere between 10% and 15% of the
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population experiences chronic pain at some point in their lives. to the extent that cannabinoids go on to be recognised in more effective dosage forms, they could compete, if you like, fora forms, they could compete, if you like, for a significant share of that market. and that, in the united states, is a multi— billion—dollar market. the purity and the potency of cannabis varies. so how difficult is it to get the dosage right? when somebody inhales a cigarette or a vaporiser, the amount they take could easily vary tenfold depending
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on how deeply they inhale, how long they hold their breath, and other factors as well. and that is certainly very, very inconsistent with the way we look at medications for the treatment of virtually all other conditions, where we are pretty precise in our initial dosage recommendations. what are the risks associated with medicinal cannabis? some more serious potential side—effects are that in certain cases it has been shown that cannabinoids can induce more severe disorders in patients with pre—existing central nervous system and psychiatric conditions. so that is something that most prescribers are most aware of and would proceed cautiously with, if at all, in recommending cannabis therapy to
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such patients. is there an irony that you used to run a major manufacturer of one of the leading opioid drugs, and now here you are, with emblem, talking about creating a market great product which might replace or displace some of those?” do not think cannabinoids will ever totally displace opioids. there are places where opioids will continue to work, and i don't see evidence that cannabinoids will. but they may, as you say, displace some of those prescriptions. the us has asked the united nations to place an oil embargo on north korea and freeze the assets of kim jong—un over the latest nuclear tests. the d raft over the latest nuclear tests. the draft resolution seen by news agencies demands not only a ban on oil and gas supplies, but also an end to textile exports and payments made to north korean guest workers, cutting off revenue to kim's regime. china and russia have long opposed
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measures that could worsen the country's humanitarian crisis and trigger a refugee exodus. that is all from world is this report. —— world business report. more than a fifth of lgbt people have become victims of hate crime due to their sexual orientation or identity in the last year, research shows. ena miller reports. come on. lyon and steve want to be able to be themselves, but say they can't, because they are gay. three weeks ago i was in a nightclub and this guy must have heard my voice, heard that i am camp and gay, so thought he would try to intimidate me. he turned around and started saying some quite homophobic slows to me, at which point i brushed them off. i wasn't going to let him ruin my night at the time, which he definitely didn't like, because he then turned around and stamped on my
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hand. and from that stamp, i found out two days later, that my knuckle was broken. can head with how things we re was broken. can head with how things were 20 years ago when i first came out, we are in a different place today. —— compared with. gay characters all around us, people growing up with that. the last thing i expected was free young man to find it offensive and think it was 0k to hit find it offensive and think it was ok to hit me. find it offensive and think it was 0k to hit me. new research carried out by stonewall suggests that hate crime is on the rise. the number of lesbian, gay and bisexual people who experienced hate crime in the past year increased by 78% on four years ago. 41% of transgender people said they have suffered an incident in they have suffered an incident in the last 12 months. 81% of people survey didn't report the offence to police. the charity is warning against complacency and has called on the public to work with the authorities to tackle the problem. it really needs police forces to step up. it needs the government to look at how they deal with hate
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crime. what we are asking the government —— asking people to do is to sign the pledge on our website that they will stand up for lgbt it quality in their communities, it is it will take individuals in every pa rt it will take individuals in every part of the uk to change this. the government has said it is already working with police and the justice system to ensure that victims have the competence to report abuse. —— confidence. two small caribbean islands have been flattened by hurricane irma — which is leaving a trail of devastation across the region. both st martin and barbuda have experience what's being described as unprecedented damage. facebook has said it's handing over to the us special prosecutor — robert mueller — evidence of a russian—funded campaign to promote divisive social and political messages during last year's american presidential election. excited crowds have greeted pope francis on the first papal visit to colombia in three decades. the pope has said his visit is a plea for lasting peace following last year's accord
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between the government and fa rc rebels. tennis, and roger federer has been knocked out of the us open. he lost in four sets to argentina'sjuan martin del potro in the quarter—finals at flushing meadows. del potro will now go on to play rafael nadal in the semi—finals. now it is time for our newspaper review. what's making headlines around the world ? a lot of media focus on the biggest atlantic storm in history, hurricane irma. the washington post online reports ‘massive irma slams into the caribbean and takes aim at florida' where mass evacuations are taking place and the mood is described as ‘frantic.’ the financial times covers the decision by the vice—chairman of the federal reserve,
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stanley fischer to hand in his resignation to president trump, adding to the turbulence at the us central bank as it now faces a host of vacancies at senior levels. india's biggest film of the summer exposes a major problem across the country. this is in the new york times. the film is called ‘toilet, a love story‘ and it speaks to one of the country‘s ‘most serious public health concerns‘ — 1.3 billion people and not enough toilets. ultra—thin models ‘out of fashion?‘ the financial times looks at a ban by french luxury fashion groups of models under a size 32, that‘s a uk four or a size zero in the states. the brands include louis vutton, christian dior and gucci.

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