16/09/2016 World Business Report

EU leaders gather for a summit as they face up to a future

without Britain, and the financial fallout.

Plus London Fashion Week's power dresser.

We meet the designer whose clients include Kate Middleton and Michelle

Welcome to World Business Report. Hello.

We will also be talking to the boss of Lloyds of London,

he's among senior UK financial figures who want to see much more

clarity from the Government over Brexit.

We start in the Slovakian capital Bratislava where leaders

of the European Union member states are about to start

Notably absent from the guest list, and the obligatory family photo,

And top of the agenda of course, the reason why she is not there.

They will be trying to work out how to respond to the biggest crisis

Critics have warned that the EU faces disintegration if it does not

address the problems that led to the Brexit vote.

But in the shorter term there will also be a financial

The EU's budget could shrink by at least 10 billion euros a year

once Britain leaves, according to the first official calculations.

Last year, Britain was the second biggest contributor

And it's Germany that may have to pick up much of the bill

Brexit could mean Germany ends up funding a quarter of the EU's

budget compared to the 21% it contributes today.

That's according to calculations made by the German government.

It's a figure that will further anger Eurosceptics in Germany.

Ahead of today's summit, a stressed looking European Council

president Donald Tusk said the EU needs a shake-up if it is to survive

Definitely. We haven't come to Bratislava to comfort each other all

to deny the real challenges we face. -- or. In this particular moment in

the history of our community, after What we need today is an optimistic

vision for the future, that I have no doubt. But it requires a

realistic diagnosis of the causes of Bradford and its political

consequences for all of Europe. -- Brexit.

Lorenzo Codogno is a visiting professor at the London School of

He was also Chief Economist at the Italian Treasury

Welcome to the programme. An informal meeting. A significant and

symbolic one. How stormy will it be? There will be a discussion on

Brexit, clearly. But this is a discussion on Europe. It will be

informal, a brainstorming session. That is key and very important.

After Brexit there is clearly need for rethinking the future of Europe

and new ideas. I think for Europe the debate will kickstart with the

same speech that Juncker gave a few days ago in front of the European

Parliament. That is the focus of the days. So that will involve security,

military force, and economic security. Those are the three themes

delivered a few days ago. I wonder how many of the 27 remaining members

of the EU share his vision for the future. They mainly share his

vision. I have to say I am suspicious. The same leaders that

yesterday were saying we do not need more Europe now seem to be

enthusiastic about more cooperation in terms of military and security.

So we will see. It is encouraging that at least there are new

initiatives because I think as was said by many, especially a few days

ago, we need to hand deliverables, concrete actions that can be

delivered We have to show people that Europe is delivering. You need

vision but also concrete steps. That is exactly it. There seems to be a

divergences opening up, even between Myra -- Mario and Juncker.

Cooperation on these areas is important. I think this is something

that can connect Europe with the people. OK? We should not forget the

number of plans and projects that are still open on the side of the

economy. Ban Ki-moon has left an unfinished job. We need to finish up

what he has already started, as Mario said. That is also a key

message. Yes, new initiatives. We fully understand that it is

difficult to deliver March. But we need to start the discussion. --

much. But at the same time it is very important to finish up what is

on the table. OK, we will have to leave it there. OK. The start of a

very long process, I am sure. Let's stay with the issue of Brexit,

because tension is mounting in the UK's business community

about the terms under which Britain The financial industry

is particularly concerned. The Chairman of insurance market

Llloyds of London has been warning that his company will have to move

business out of the City if it is not given guarantees

about its access to European At the moment, the single insurance

market means Lloyd's can operate in all the other 27 member states

via what's known as passporting. John Nelson is the Chairman

of Lloyds of London and he joins me Hello. Good morning. Good morning to

you. A wonder what happens to Lloyds of London if return does not

maintain access to the single market of the EU. -- Britain. We have been

developing contingency plans for some time. In fact, if you look at

Lloyds as a whole, we are a very global market. We have a global hub

of specialist insurance. We do business in 200 countries around the

world. With regards to the EU, they are 11% of our business. A chunk of

our business is insurance which is not directly affected. It is

important to us, but it is not fundamental. So, if we don't get

passport rights, as I said before, what we would have to do and what we

would do is to write the business, that part of the business, a

relatively small part of that business, but important, onshore EU.

What contingency plans are you drawing up? Well, every insurer, in

terms of the insurance industry, they have different business models,

they have different priorities, the life sector has different issues to

the general insurance sector which is what we are in. But most of us in

the sector have our own contingency plans stop at OK. We will have

delivered there. Short but sweet. But thank you for joining us from

Singapore. Thank you. From Singapore back to London now,

and Fashion Week which gets What do the Duchess

of Cambridge, Samantha Cameron, and Michelle Obama,

all have in common? They are all well-known

as stylish dressers, and they are all fans

of Serbian-born designer. Roksanda Ilincic, who is behind some

of the designs you can see here. We have been speaking to her ahead

of London Fashion Week, the biggest event in the fashion

trade, which starts today. Here she is making

final preparations. Ilincic left Serbia for London

to study fashion, and went on to build a global business

from scratch here in the UK. She has been telling our

correspondent Emma Simpson why London remains at the centre

of the global fashion industry. I think what London Fashion Week has

managed to achieve in the last decade or more so is to create very

big international buzz. All eyes are on us. Media, retailers, lovers of

fashion, to see what we have come up with. Would you be where you are

today if you had not in able to come to London? Definitely not. And this

is a very straightforward answer, because London was always the best

place to be if you are a young designer. Especially now that there

are so many skills that are supporting young designers. London

has come up with more support than when I started. There are many ways

to encourage young designers in creativity. If I was not in London I

don't think I would have achieved this, at least not in this time that

I did hear. Just one more story for you.

The US Department of Justice is asking Deutsche Bank to pay $14bn

to settle an investigation into mortgage-backed securities.

Deutsche Bank says it "has no intention to settle these potential

civil claims anywhere near the figure cited."

The claim against Deutsche, which is likely to be negotiated

for several months, far outstrips investor expectations.

The markets. Japanese stock rose. The Federal Reserve rate -- rate

hikes are looking more unlikely. That is it.