:00:00. > :00:00.This is Business Live from BBC News,
:00:00. > :00:00.with Ben Thompson and Sally Bundock.
:00:07. > :00:08.Who will be in charge of the Brexit negotiations?
:00:09. > :00:11.Today is the deadline for nominations
:00:12. > :00:14.in the race to be Britain's next Prime Minister.
:00:15. > :00:37.Live from London, that's our top story on Thursday 30th June.
:00:38. > :00:43.Key European leaders say that a la carte is off the menu,
:00:44. > :00:46.whoever gets the top job is told Britain must allow migration
:00:47. > :00:48.if it wants to sell into the single market tariff-free.
:00:49. > :00:50.Also in the programme: One of Singapore's biggest lenders
:00:51. > :00:55.telling investors they need to be cautious.
:00:56. > :01:01.and the relief rally on markets is now over, as you can see, markets
:01:02. > :01:02.across the board in Europe are headed lower, we will explain why.
:01:03. > :01:06.but we'll meet the man gearing up for Christmas.
:01:07. > :01:08.The boss of greetings card firm Design Group
:01:09. > :01:10.will be here to discuss business, Brexit
:01:11. > :01:12.and making Christmas crackers for the Queen.
:01:13. > :01:15.And we'll assess how the world's papers are covering the fallout
:01:16. > :01:17.of Brexit, including news that New Zealand is offering
:01:18. > :01:19.to lend its top trade negotiators to the UK
:01:20. > :01:39.to help talks over 50 new trade deals.
:01:40. > :01:44.We have got it all, crackers, the Queen, you name it! Get in touch
:01:45. > :01:46.with your questions. What kind of trading
:01:47. > :01:47.relationship will Britain have with the European Union
:01:48. > :01:50.following the vote to leave? The UK has set up a government task
:01:51. > :01:53.force to prepare for negotiations. The first is what is often described
:01:54. > :01:58.as the Norway model, out of the EU, but belonging to the
:01:59. > :02:09.European Economic Area, or EEA. It would give Britain
:02:10. > :02:11.almost total tariff-free access It's the option which is most
:02:12. > :02:17.similar to the status quo. As well as paying into
:02:18. > :02:22.the EU budget, and accepting the majority of EU law,
:02:23. > :02:25.European leaders have said it would need to accept
:02:26. > :02:30.free movement of people. as immigration was a central issue
:02:31. > :02:43.in the UK's debate to leave the EU. Option two, the UK could
:02:44. > :02:45.try for an association agreement with the EU,
:02:46. > :02:48.giving partial market access. But there are big questions
:02:49. > :02:51.over whether this would protect access for London's
:02:52. > :02:54.financial services market. Britain could try to rely
:02:55. > :03:01.on World Trade Organisation rules. But exports to the EU
:03:02. > :03:03.would likely be taxed. For instance, US cars sold in the EU
:03:04. > :03:12.have a tariff of 10%. Well, at the end of
:03:13. > :03:15.the EU summit yesterday, European Council President Donald
:03:16. > :03:18.Tusk insisted that Britain will have to accept Europe's terms if it wants
:03:19. > :03:28.access to the single market. European Union must be
:03:29. > :03:33.orderly, and there will be no negotiations of any kind
:03:34. > :03:35.until the UK formally Leaders made it crystal clear today,
:03:36. > :03:44.access to the single market requires acceptance
:03:45. > :03:46.of all four freedoms, There will be no single
:03:47. > :03:55.market a la carte. Sir Simon Fraser is a managing
:03:56. > :04:00.partner at Flint Global. Previously, he was
:04:01. > :04:01.the Permanent Under-Secretary at the Foreign
:04:02. > :04:11.and Commonwealth Office. Let's pick up on the idea of
:04:12. > :04:15.cherry-pick the best bits, because we were told we cannot do this a la
:04:16. > :04:20.carte, I do accept the terms of the open market or walk away. Talk me
:04:21. > :04:24.through that process, because it is a varying degree of access interns
:04:25. > :04:28.for trade, isn't it? The key thing is the amount of access you can get
:04:29. > :04:31.the extent to which you are prepared the extent to which you are prepared
:04:32. > :04:36.to accept the rules and obligations that go with that. Under the
:04:37. > :04:39.scenarios you have described, for example, the Norway scenario you
:04:40. > :04:43.described, a lot of access to the market, almost in it completely, but
:04:44. > :04:47.you have to accept rules like freedom of movement, and you have to
:04:48. > :04:51.make a financial contribution. If you go to another option, like a
:04:52. > :04:55.free-trade agreement or association agreement, you have you obligations,
:04:56. > :04:59.but your preferential access in the market, where we do nearly half of
:05:00. > :05:04.our trade, is only covered by the areas and sectors that you actually
:05:05. > :05:10.negotiated in. Is it too early to say which is most likely? I think it
:05:11. > :05:13.is rather early to say that. This was an unprecedented negotiation,
:05:14. > :05:17.the European Union is deeply integrated in terms of the national
:05:18. > :05:22.economies. The former head of the WTO has a nice way of describing it,
:05:23. > :05:27.I am told, he says we know how to make an omelette out of eggs, but we
:05:28. > :05:31.don't know how to make an egg out of omelette. Lovely analogy! New
:05:32. > :05:36.Zealand offering trade negotiators, this struck me that New Zealand
:05:37. > :05:39.offering top trade negotiator to the UK, saying, we have the expertise of
:05:40. > :05:45.doing this, we have had to do this and strike deals, they are talking
:05:46. > :05:47.about 50 trade deals needing to be signed, talk me through the
:05:48. > :05:52.practical realities of how you start to do that. One set this uses our
:05:53. > :05:56.elation ship with Europe, but there is another set of this use, which is
:05:57. > :06:01.the rest of the world. That and anon of the options have we described
:06:02. > :06:05.with the UK be governed by the external trade arrangement of the
:06:06. > :06:11.European Union. -- under none of the options. Now, the EU currently has a
:06:12. > :06:15.number of agreements covering about 50 countries, not 50 agreements, but
:06:16. > :06:21.the coverage is 50 countries. We would have to look at those markets.
:06:22. > :06:26.And this is a two way street, because the IMF has said they might
:06:27. > :06:31.downgrade German growth broadcast as a result of Brexit, emphasising how
:06:32. > :06:35.important that trade is in both directions. Absolutely true, and
:06:36. > :06:38.while they say that the UK should not be allowed to cherry-pick
:06:39. > :06:45.options, we have mutual interests with Europe in finding a solution
:06:46. > :06:46.which works for everybody. Sir Simon Fraser, thank you for explaining all
:06:47. > :06:48.of that. US President Barack Obama says
:06:49. > :06:51.the UK vote to leave the EU raises longer-term concerns
:06:52. > :06:53.about global growth. He said Brexit would freeze
:06:54. > :06:55."The possibilities of investment in Great Britain or in
:06:56. > :07:03.Europe as a whole." Mr Obama appealed to the UK
:07:04. > :07:06.Prime Minister and other EU leaders to ensure an orderly process
:07:07. > :07:08.for a British exit. Confidence among British consumers
:07:09. > :07:11.fell sharply in the days after the country decided to leave
:07:12. > :07:13.the European Union, The index measures people's economic
:07:14. > :07:18.sentiment on a daily basis but showed it had slumped
:07:19. > :07:22.to its lowest level since May 2013. That's when Britain's economy
:07:23. > :07:24.was starting to emerge from the worst
:07:25. > :07:28.of the financial crisis. And in other news, the US Senate
:07:29. > :07:31.has approved a relief plan to help Puerto Rico tackle
:07:32. > :07:34.debts of $70 billion. It's facing potential default
:07:35. > :07:36.on Friday when $1.9 billion worth
:07:37. > :07:40.of payments are due. The US territory has been suffering
:07:41. > :07:42.a decade-long recession that has seen thousands flee
:07:43. > :07:45.for the US mainland. Businesses have closed,
:07:46. > :07:48.electricity is in short supply, and hospitals
:07:49. > :08:03.are lacking medication. Just to say, the Zika viruses also
:08:04. > :08:09.impacting Puerto Rico as well, having a difficult time. The live
:08:10. > :08:17.pages where you will find... I love this picture, the Airbus over houses
:08:18. > :08:20.in west London. That really does highlight the controversy over the
:08:21. > :08:24.expansion of airports in the south-east of England. You will know
:08:25. > :08:28.that Heathrow, the UK's biggest and busiest airport, but there is
:08:29. > :08:32.controversy over its plans to add another runway. Given the political
:08:33. > :08:36.turmoil we have been talking about as a result of the vote to leave the
:08:37. > :08:40.European Union, the suggestion is a decision will not be made any time
:08:41. > :08:44.soon about a new runway. Business is not happy about that.
:08:45. > :08:46.It was supposed to be announced on July the 7th, so we shall see.
:08:47. > :08:49.Kicked into the long grass, maybe. To Asia, and one sector
:08:50. > :08:51.being particularly affected by Britain's decision to leave
:08:52. > :08:54.the EU is property. Many of the region's
:08:55. > :08:56.biggest developers and banks And the third largest lender
:08:57. > :08:59.in Singapore has decided to stop
:09:00. > :09:14.giving loans to buyers in London. It is quite a significant move that
:09:15. > :09:22.shows the global repercussions of Brexit. Exactly, the fallout
:09:23. > :09:28.continues. We're talking about Singapore's third largest bank, UOB,
:09:29. > :09:30.United Overseas Bank, and they have suspended temporary debt loan
:09:31. > :09:36.programme for London properties because of the uncertainty caused by
:09:37. > :09:40.the vote to leave the European Union. UOB has said they are looking
:09:41. > :09:43.to show their customers cautious with putting money into London
:09:44. > :09:48.property while the outlook remains quite murky. To put into context,
:09:49. > :09:51.Singaporeans were the top Asian buyers of London property last year,
:09:52. > :09:58.and that is according to a consultancy. So the banks here, not
:09:59. > :10:02.just UOB, but the other two big leaders, they are telling customers
:10:03. > :10:05.they need to because just because of foreign exchange risks. Obviously,
:10:06. > :10:09.we have seen the pound for to a three decade low, and the Singapore
:10:10. > :10:13.dollar has risen quite sharply against it. So if they invest in
:10:14. > :10:19.London property, even if the value of that house rises, any gains will
:10:20. > :10:23.be eroded if sterling continues to depreciate against the Singapore
:10:24. > :10:28.dollar. So that is the worry, and so the banks here are all monitoring
:10:29. > :10:33.the situation very closely. OK, thank you so much, very interesting
:10:34. > :10:38.story emerging in Singapore there. Let's look at markets now, we saw a
:10:39. > :10:47.slight gain in Japan, Hong Kong up 1%, but behind me that is the Dow,
:10:48. > :10:50.Wall Street had a strong session on Wednesday, as did Europe. But it
:10:51. > :10:56.would seem that the relief rally has come to an end, let's look at
:10:57. > :11:00.Europe, all markets down. Not significantly, let's not forget the
:11:01. > :11:06.FTSE was up 3.6% yesterday, recovering completely from the post
:11:07. > :11:09.Brexit losses, as it were. So no surprise today that markets are
:11:10. > :11:14.taking a bit of a pause and perhaps taking a little bit of profit on
:11:15. > :11:18.some stocks that rallied significantly on Wednesday. We will
:11:19. > :11:22.talk some more about what is going on on financial markets at the
:11:23. > :11:23.moment in Europe, but first Samira Hussain has the details about what
:11:24. > :11:25.is ahead on Wall Street. On Thursday, Yahoo will hold
:11:26. > :11:28.its annual shareholder meeting. Investors are expected to approve
:11:29. > :11:30.Yahoo's new Board of Directors, which was expanded to 11
:11:31. > :11:33.from nine members in April. The meeting comes as Yahoo
:11:34. > :11:35.has put itself up for sale. There are many rumours
:11:36. > :11:37.over new possible buyers, Shareholders will likely ask
:11:38. > :11:44.for an update on the process. New applications
:11:45. > :11:46.for US unemployment benefit likely increased last week,
:11:47. > :11:49.but probably remained below a level associated
:11:50. > :11:54.with a healthy labour market. This report will be closely watched
:11:55. > :11:57.in the weeks ahead for any signs of a fallout from
:11:58. > :12:00.last week's Brexit referendum. Finally, for baseball fans
:12:01. > :12:02.out there, online voting will determine which players
:12:03. > :12:12.will participate in the 12th of July Major League Baseball
:12:13. > :12:14.All-Star game in San Diego. The deadline to cast your vote
:12:15. > :12:28.is 11.59 Eastern Standard Time. Deadlines all over the place at the
:12:29. > :12:35.moment! You cannot escape them! That was Samira sane Almac.
:12:36. > :12:40.Breaking news from Richard Westcott, news on the story we were talking
:12:41. > :12:44.about earlier, Heathrow expansion. The Government will now defer a
:12:45. > :12:48.decision on expanding Heathrow until there is a new Prime Minister in
:12:49. > :12:52.place. That means that the deadline of this year is unlikely, pushing
:12:53. > :12:55.back expansion of airport capacity in the south-east of England. The
:12:56. > :13:00.decision was expected to be announced on July the 7th, so very
:13:01. > :13:05.soon. I was just talking to the boss of Gatwick Airport about this,
:13:06. > :13:10.whether the Brexit situation has pushed that into the long grass, as
:13:11. > :13:14.it were, very much on the back burner. As Richard Westcott has
:13:15. > :13:18.confirmed, that is definitely the case. Boris Johnson has very
:13:19. > :13:22.different ideas to David Cameron about whether the expansion should
:13:23. > :13:25.take place and where. We will be covering this turbulent story into
:13:26. > :13:38.the future. We have seen a markets dip today,
:13:39. > :13:43.different yesterday, when we saw some pretty impressive figures, the
:13:44. > :13:47.FTSE 100 back up above levels before the referendum vote? Well, of
:13:48. > :13:51.course, the knee-jerk reaction of the Brexit boat was a surprise,
:13:52. > :13:56.markets went down across the world, growth was revised down, and that is
:13:57. > :14:05.what you would expect. But we have been here before, so central bankers
:14:06. > :14:09.are used to boa -- volatility. News has come out that the Federal
:14:10. > :14:14.Reserve might not raise rates until December, some are saying not until
:14:15. > :14:19.next year. In the UK, we have talks about rate cuts, perhaps to zero,
:14:20. > :14:23.all sorts of things like that, and traders are taking advantage of
:14:24. > :14:28.that. So much more volatility, it is much more liquid than it was. And it
:14:29. > :14:32.will be like this for some time, a strong day followed by profits being
:14:33. > :14:37.taken, it will be very volatile for some time, would you say? I think it
:14:38. > :14:41.will be for a long time, depending on what news comes out. And what the
:14:42. > :14:46.central bankers really do. We know that Mark Carney is speaking this
:14:47. > :14:50.afternoon at four o'clock UK time, that will help calm markets again.
:14:51. > :14:55.There is going to be a lot of talk, but I think this volatility is with
:14:56. > :15:00.us for some time, and growth will be lower. In uncertain times, and that
:15:01. > :15:06.is everywhere, people do not spend, and companies do not invest. The UK
:15:07. > :15:11.will be worst hit. Look at the FTSE 250, the larger index which covers
:15:12. > :15:18.mostly UK firms, that is well below the three Brexit level. So it is
:15:19. > :15:18.going to be an uncertain time for a long time, and eventually earnings
:15:19. > :15:32.will be lower. It is 8% below where it was before
:15:33. > :16:11.Brexit. We have heard the Government will
:16:12. > :16:22.defer a decision on airport expansion. Passenger numbers at
:16:23. > :16:27.Gratton that -- we have had record levels of passengers at Gatwick
:16:28. > :16:33.Airport. It would like the new runway to be built there are rather
:16:34. > :16:35.than at Heathrow. I spoke to the boss to find out what he had to say.
:16:36. > :16:38.Gatwick finds itself at the centre of this debate.
:16:39. > :16:41.We have said for three years as we have made the case
:16:42. > :16:43.for Gatwick that this is all about which runway ultimately can be
:16:44. > :16:47.If Heathrow were going to happen, it would have by now.
:16:48. > :16:49.This is the first time that Gatwick has
:16:50. > :16:54.That is because we have separate ownership with separate shareholders
:16:55. > :16:57.who are backing us on our campaign to get the runway.
:16:58. > :16:59.If you look at the merits of the Gatwick runway,
:17:00. > :17:01.we're faster to deliver, can be open by 2025,
:17:02. > :17:08.so we get all of the economic benefits flowing earlier,
:17:09. > :17:11.we get the same connectivity for long-haul and short-haul to and from
:17:12. > :17:15.the UK in terms of choice of destinations.
:17:16. > :17:19.We do it at a third of the cost of Heathrow with no
:17:20. > :17:25.Environmentally, we are cleaner and quieter.
:17:26. > :17:36.There are a lot of other UK stories around. The world's media have been
:17:37. > :17:41.update on BHS, because there was update on BHS, because there was
:17:42. > :17:43.more evidence given to MPs yesterday about the collapse of BHS, who is
:17:44. > :17:48.responsible, who paid what to whom responsible, who paid what to whom
:17:49. > :17:52.and who knew what when. The former owner Philip Green says he wants an
:17:53. > :18:05.apology from Frank Field, the MP, because he has been giving evidence.
:18:06. > :18:08.Sir Philip says that BHS's collapse showed shocking behaviour. It all
:18:09. > :18:15.relates to the collapse with the 11,000 job losses.
:18:16. > :18:20.A stress test took place in the United States, looking at all banks
:18:21. > :18:24.operating their to see if they could suffer a financial shop. They nearly
:18:25. > :18:28.all pass, apart from Santander and Deutsche Bank. We will talk about
:18:29. > :18:39.that in a few minutes. You can see the detail on our website. Our top
:18:40. > :18:44.story: Who will be in charge of story: Who will be in charge of
:18:45. > :18:50.Brexit negotiations? It seems obvious but it is far from obvious.
:18:51. > :18:54.Today is the deadline for nominations to become Britain's's
:18:55. > :18:56.a reality show! Let's have a look at a reality show! Let's have a look at
:18:57. > :19:09.the markets. The FTSE closed up sharply yesterday
:19:10. > :19:19.but has dropped a little on opening today. We should be looking at the
:19:20. > :19:20.FTSE 250, which gives us a clearer indication about what smaller UK
:19:21. > :19:23.businesses are feeling. on what Brexit means for businesses
:19:24. > :19:27.with a truly global footprint. IG Design is one of
:19:28. > :19:29.the largest companies in the international
:19:30. > :19:32.gift packaging market. The company sells a wide range
:19:33. > :19:34.of products, including Star Wars-branded
:19:35. > :19:37.birthday cards and gift-wrapping endorsed
:19:38. > :19:39.by the Queen of England. IG has a presence
:19:40. > :19:41.in over 150,000 retailers and more than 80
:19:42. > :19:44.countries worldwide. This includes markets
:19:45. > :19:47.both inside and outside Paul Fineman is the CEO
:19:48. > :20:05.of IG Design Group. Nice to see you. Thank you. What
:20:06. > :20:10.does it mean? Bill we are a diversify group with a global
:20:11. > :20:13.portfolio, so our reality is that a third of our businesses actually
:20:14. > :20:20.made in the country where we are delivering. Our Dutch factory
:20:21. > :20:23.factory delivers to the United factory delivers to the United
:20:24. > :20:30.States and so on. In those areas, Brexit will have very little impact.
:20:31. > :20:34.Our largest growth market is the United States, so actually, from a
:20:35. > :20:41.translate favourably into sterling. translate favourably into sterling.
:20:42. > :20:47.Probably the toughest aspect of this will be where we are importing
:20:48. > :20:52.product in US dollars into the British and European market. There
:20:53. > :20:57.are, you have currency hedging requirements. Our position is, we
:20:58. > :21:04.are fully hedge, so actually, our exposure is minimal. We are selling
:21:05. > :21:09.about 500 million products per year which are low ticket items. We feel
:21:10. > :21:13.that we are very well placed to be resilient to any difficult market
:21:14. > :21:21.headwinds. You give us the impression that we
:21:22. > :21:24.will wrap our gifts this Christmas non-at how we feel about our
:21:25. > :21:29.personal circumstances, so you are selling that. And you're sober
:21:30. > :21:32.diversify that although there will be the odd Nokia and there, it will
:21:33. > :21:38.not harm you to a great degree, so you're not really concerned? You're
:21:39. > :21:42.right. We are certainly not complacent. All business have had to
:21:43. > :21:46.deal with challenges in recent years. This is another one. As we
:21:47. > :21:50.years, our group is very well placed years, our group is very well placed
:21:51. > :22:00.to deal with this. Are there opportunities here? Bail-mac from an
:22:01. > :22:05.export perspective, 25% of our manufacturing in the UK goes
:22:06. > :22:11.overseas. If currency rates remain at the current levels, we would be
:22:12. > :22:18.think that business communities in think that business communities in
:22:19. > :22:23.general are very adaptable and flexible in terms of dealing with
:22:24. > :22:33.any kind of challenges or headwinds, and we have that mindset ourselves.
:22:34. > :22:38.You are into Christmas crackers. That is becoming big
:22:39. > :22:46.internationally, isn't it? You are right. We recently started selling
:22:47. > :22:57.to Mexico, and we had an opportunity to make divali crackers for India.
:22:58. > :23:01.We are making them for baby showers, weddings. It is becoming an everyday
:23:02. > :23:02.table decoration rather than just a Christmas item. Who would have
:23:03. > :23:11.thought. Vancouver joining us. In a moment we'll take a look
:23:12. > :23:13.through the business pages, but first here's a quick reminder
:23:14. > :23:25.of how to get in touch with us. the latest details, with insight and
:23:26. > :23:31.analysis from the BBC's team of editors around the world. We want to
:23:32. > :23:35.hear from you. Get involved on the BBC business live web page at BBC
:23:36. > :23:38..com/ business. We are on Twitter .com/ business. We are on Twitter
:23:39. > :23:47.and Facebook. What other business
:23:48. > :23:49.stories has the media been Joining us again is
:23:50. > :23:59.economist Bronwyn Curtis. We talked about New Zealand offering
:24:00. > :24:04.trade negotiations. It is generous, so thank you, New Zealand! The trade
:24:05. > :24:11.delegation would help us strike deals around the world. And they
:24:12. > :24:15.have more experience than us. When they couldn't trade as much with the
:24:16. > :24:19.UK, they looked to the rest of the world, and they sell all around the
:24:20. > :24:25.world. It may be a small country, but they have been negotiating trade
:24:26. > :24:30.deals. It takes a lot of experience, and time to train these negotiators.
:24:31. > :24:36.Australia and New Zealand, just like the rugby coaches that come here to
:24:37. > :24:42.help the UK to win, that is something they can offer. May be
:24:43. > :24:45.European leaders would prefer a New Zealander to come across and
:24:46. > :24:55.negotiate on our behalf as opposed to speaking to a Brit! It might go
:24:56. > :24:58.better for us! Here in the UK, when it comes to trade negotiators, we
:24:59. > :25:04.don't have that many any more because we have farmed it out to
:25:05. > :25:10.Europe. I think it is about 40 keirin about 550 in Europe. You
:25:11. > :25:15.would find it out to Europe if you were going to be in. Why would you
:25:16. > :25:18.need them? Could you imagine trying to do these negotiations with
:25:19. > :25:24.everybody around the world? It is going to be really difficult. Now is
:25:25. > :25:30.the time to train to be a trade negotiator, apparently. Go after New
:25:31. > :25:36.Zealand, train, come back, and those will be the top jobs. Time is
:25:37. > :25:40.running out. Pop stars are complaining to Brussels about you
:25:41. > :25:44.Tube. They are not getting enough revenue, they are saying. There is a
:25:45. > :25:51.consumption of YouTube content and consumption of YouTube content and
:25:52. > :25:57.they are not getting paid. It is big names, and it has come at the same
:25:58. > :26:01.time as Warner music and Sony music are negotiating with future. Thank
:26:02. > :26:10.you. That's it from us. Have a good day. -- negotiating with you Tube.