29/06/2016 World Business Report

possible relationship with the EU once it is outside -- David Cameron.

Those are the latest headlines. Now on BBC News, it's time

for World Business Report. With David Cameron now out of the

picture, what direction will be European Union take? The remaining

EU leaders continue their discussions after Britain's vote to

leave. And another embarrassing recall for Toyota in the US. This

time it possible airbag inflated defect. Nearly half the money in

vehicles are affected. -- half a million. Hello and welcome to World

Business Report. Also in the programme, the former chief

economist of the European Central bank tells us what he fears about

the EU, that it could fracture. But first, let's talk about what

happened in Brussels. Left out in the cold, European leaders meeting

again in Brussels today but without written's Prime Minister, David

Cameron. The leaders of the 27 in the States will have informal

discussions over the indications of the vote to leave the EU. Last night

was to Cameron gave what was probably his last as conference in

Brussels and outlined some of the challenges ahead. The European Union

sees the single market as a single market of goods and services and

capital and people, and these things great together, and indeed the

European Union sees that the structural funds made to the EU

after the single market. Sometimes we see these as separate options.

The sense that is that all of these go together, and if you want the

full benefits of the single market, you need to be involved in every

part of it. That will obviously be a huge challenge to try to get that

right for the future. A challenge for Europe and for Britain.

Meanwhile, Angela Merkel said there would be no negotiations based on

cherry picking what best suits the UK. Yesterday we spoke about how

Germany could shape a future trade deal giving the UK is their biggest

export market. What about France? It would also be a key player in

negotiations and compared with Germany has a lot less to lose when

it comes to trade. Exported $35 billion worth of goods to the UK

last year. That is less than Germany. Britain's vote has also

emboldened the far right parties, including the National Front, which

are demanding their own European referendum. Brenda Penn said a UK

vote was a victory for democracy. -- Marine Le Pen. It is often seen as a

advocate for protectionist measures such as for its agricultural policy

which provides billions of dollars to farmers in subsidies. Let's speak

to the vice president of the Centre for Young Business Leaders. Good

morning and welcome to World Business Report. For France,

Francois Hollande is a key player in the Brexit negotiations. What is

France looking for and hoping for as this divorce recess gets under way?

-- process. Last Friday, when I woke up, I was so surprised, and for

French entrepreneurs, especially small business, it was really

difficult to understand what kind of decision. Afterwards, when we saw

who was voting, and young people mostly voted to remain, and all

people voted to leave, we understood that it was like sustainable

development. This decision is a short-term decision, and for the

future, we think it is a really bad news. What does it mean for France

going forward? You have a general election next year and the French

economy is going through a tough time. We have been following the

protests as Francois Hollande tries to get through difficult labour

reforms. Many say Brexit strengthens the hand of Marine Le Pen as you go

to that election next year. What do you think this means for France?

This decision? That means, first, there are a lot of French

politicians, leaders, who think it would be a good being to do a

Frexit, not only Marine Le Pen, and what happened is going to

concentrate all of the debate on it do we have to stay in Europe or not?

But this is one of the main subjects which will impact the next election,

but if you look at, I heard this morning, only 30 people in France

hope to leave Europe, so I am not afraid about that. But it is a good

opportunity for French politicians who want to leave Europe to talk

about that, and do a referendum, but we are not obliged to. Thank you for

your time this morning. Of course it is a discussion that will continue

for some time. Oh, dear. Apologies. We have to move on. The UK's vote to

leave the EU has been greeted with shock I many influential people in

Europe. You could hear to Rome was shocked when he heard Friday morning

and that it could lead to the disintegration of the EU itself will

stop others have taken it as a signal that calls for far reaching

reforms to ensure the survival of the European project. We can speak

to the former chief economist of the European Central bank and seen as

one of the architects. The European Union and you resign are taken

crossroads -- you resign. For the first time, the process of

integration which always went forward, more integration, more

countries, it is now going in the other direction. One country has

decided to leave. This is a total change to what we have seen since

the end of the Second World War. Do you think what we could see now is a

move towards a 2-stage Europe where Britain becomes like Norway or

Iceland or Switzerland, where it has some of the benefits of European

Community membership but is not a member of the EU? Yes, I think this

idea of a two speed Europe never died, and the UK was always half in

and half out in the past. This cream skimming can be attractive. Against

this background, I don't understand why the UK has gone the way to

exploit this situation to their advantage. It would be more than a

nightmare, a catastrophe, if this would be the start of the collapse

of European integration. Interesting. Let's have a look at

other business stories will stop Toyota is recalling 482,000 hybrid

Prius and access cars. They say there is a possible airbag inflated

defect -- Lexus. Let's go to Rico Hizon. It is the airbags yet again.

What is going on? The problems continue for the main carte

malefactors, and this recall covers 2010- 2012 Toyota vehicles with

airbag inflated spec would have a small crack could grow over time and

read to the airbag inflating. If a passenger is in the car at the time,

it increases the risk of injury. Toyota and Lexus dealers will

install so-called brackets on the curtain shield airbag inflated at no

cost, but tens of millions of cars have really been recalled over 40

airbags in recent years. Toyota has not specified the manufacturer in

this latest recall but as they are not from Takata. Those airbags have

been blamed for a living death in some 150 injuries in the past few

years. -- for 11 deaths and some 150 injuries. But a fine has won it

could move it take orders from the UK depending on it outcome of the

big occasions to leave the EU. They said it was important to retain

access to the free movement of people, capital and goods. Vodafone

says it is still too early to draw firm conclusions regarding the

long-term location of its headquarters. The share markets,

relief is continuing. We had a strong close across the board for

Wall Street. That is the story in Asia again. How long will it last?

That is the question. The NASDAQ up over 2%. The euro is stronger versus

the pound. But weakening a bit against the dollar. I will see you

soon.