:00:10. > :00:12.This is Business Live from BBC News with Victoria Fritz
:00:13. > :00:16.EU leaders gather for a summit as they face up
:00:17. > :00:19.to a future without Britain - and the financial fallout.
:00:20. > :00:21.Live from London, that's our top story on Friday
:00:22. > :00:38.The European Council President Donald Tusk has called on EU leaders
:00:39. > :00:45.to take a "sober and brutally honest" look at the bloc's problems.
:00:46. > :00:54.Shares in one of Europe's most important financial institutions
:00:55. > :01:06.The US Department of Justice has asked Deutsche Bank to pay $14bn
:01:07. > :01:08.dollars to settle an investigation into mortgage-backed securities.
:01:09. > :01:11.And European stock markets head lower despite a solid
:01:12. > :01:13.lead from Japanese and Australian shares on Friday.
:01:14. > :01:15.Trading was light today in Asia, with key markets such as China,
:01:16. > :01:18.Hong Kong, South Korea, Malaysia and Taiwan are all closed
:01:19. > :01:24.And we'll be getting the inside track on two of the big
:01:25. > :01:26.business stories of the week the German pharmaceutical giant
:01:27. > :01:30.Bayer's move to buy Monsanto of the US, and green
:01:31. > :01:33.light from the UK government to go ahead with the Hinkley Point nuclear
:01:34. > :01:57.We start in the Slovakian capital, Bratislava, where leaders
:01:58. > :01:59.of the European Union member states are about to start
:02:00. > :02:04.Notably absent from the guest list is UK Prime Minister Theresa May.
:02:05. > :02:08.And top of the agenda of course - the reason why she's not there:
:02:09. > :02:27.Critics have warned that the EU faces disintegration if it does not
:02:28. > :02:29.address the problems that led to the Brexit vote.
:02:30. > :02:32.But in the shorter term there will also be an impact
:02:33. > :02:36.Here's why - The EU's budget could shrink by at least 10 billion
:02:37. > :02:44.Last year Britain was the second biggest contributor
:02:45. > :02:49.And it's Germany that may have to pick up much of the bill
:02:50. > :02:52.Brexit could mean Germany ends up funding a quarter
:02:53. > :02:55.of the EU's budget - compared to the 21 per cent
:02:56. > :03:01.That's according to calculations made by the German government.
:03:02. > :03:05.It's a figure that will further anger Eurosceptics in Germany.
:03:06. > :03:08.Will the EU survive the tumult, and the bill?
:03:09. > :03:10.Well - the European Council president, Donald Tusk,
:03:11. > :03:17.In this particular moment in the history of our community,
:03:18. > :03:19.after the vote in the UK, the only thing that makes sense
:03:20. > :03:35.is to have sober and brutally honest assessment of the situation.
:03:36. > :03:37.What we need today is an optimistic scenario
:03:38. > :03:45.But, it requires a realistic diagnosis of the causes of Brexit
:03:46. > :03:57.and its political consequences for all Europe.
:03:58. > :03:59.Our Europe Correspondent, Damian Grammaticas, joins us
:04:00. > :04:01.live from Bratislava - where the meeting is
:04:02. > :04:13.Damian, hearing from Donald Tusk, talking about a sober, honest look
:04:14. > :04:19.at the European Union and the problem it is is facing, A few days
:04:20. > :04:24.ago, the state of union address, give us a take on what they will
:04:25. > :04:30.grapple with today? The leaders are arriving up on the castle up on the
:04:31. > :04:34.hill behind me. They will be grappling with some of the
:04:35. > :04:39.underlying causes of the Brexit vote in the UK.
:04:40. > :04:43.Also they will be laying out a vision for the future, things that
:04:44. > :04:49.they can do, to tackle some of the problems. We have heard from the
:04:50. > :04:52.Slovak Foreign Minister, Slovakia are the host country, they are
:04:53. > :04:57.setting some of the tone for this. He said this will not be a technical
:04:58. > :05:03.discussion, it will be about laying out a vision. As he put it,
:05:04. > :05:08.Eurosceptics around Europe are gaining momentum and they are
:05:09. > :05:13.gaining, he said, the upper hand, the EU is losing popularity and the
:05:14. > :05:19.leaders need to lay out a positive vision, one that can win back
:05:20. > :05:23.popularity for the EU, one that can show, that he believes, that this is
:05:24. > :05:28.a fantastic project that delivers benefits.
:05:29. > :05:32.What will that involve? More security, more border control, that
:05:33. > :05:38.is a direct response to the concerns about migration and to terror
:05:39. > :05:44.attacks in the EU. On the other side, economy, jobs, what to do
:05:45. > :05:47.about that. There we have interesting situations, they are
:05:48. > :05:53.addressing, we know that Donald Tusk wants to lay out a plan in October,
:05:54. > :05:58.more focus on trade policy, reaping the benefits of open markets, while
:05:59. > :06:05.taking into the account the concerns of citizens. That is a message to
:06:06. > :06:09.the UK, that the EU, a huge trading block, wants to move forward with
:06:10. > :06:14.reaping trade benefits and delivering growth for its citizens.
:06:15. > :06:20.And looking forward, more milestones to tackle youth unemployment and
:06:21. > :06:25.investment in the EU. Some very lofty ambitions and a very
:06:26. > :06:33.wide-ranging vision for Europe. Is there practical? -- is this
:06:34. > :06:37.practical? The difficulty that the leaders face is two-fold, one is the
:06:38. > :06:47.divisions between themselves, so agreeing things. Here we have a root
:06:48. > :06:52.cause if you like of some of the difficulties of the situation, the
:06:53. > :06:55.strains and the tensions. And in the economics sphere, the divisions
:06:56. > :07:01.between the north and south. We know the situation in Greece but
:07:02. > :07:07.countries in the south of Europe, Italy, Spain, they want less
:07:08. > :07:13.austerity, countries in the north want more budget rigour. That is a
:07:14. > :07:17.trade-off to balance. Also the other difficulty, they have been talking
:07:18. > :07:21.about this but trying to deliver benefits felt and seen by the
:07:22. > :07:29.European citizens. So the investment plan is a big part of that. 500
:07:30. > :07:33.billion Euros worth by 2020 is the European Commission's idea.
:07:34. > :07:37.Jean-Claude Juncker has been talking about that in his State of the Union
:07:38. > :07:42.address, and he wants the leaders to put in more money. That is the
:07:43. > :07:45.problem that they face. Thank you very much Damian.
:07:46. > :07:49.Keeping us up-to-date with the summit.
:07:50. > :07:52.The US Department of Justice is asking Deutsche Bank to pay $14bn
:07:53. > :07:54.to settle an investigation into mortgage-backed securities.
:07:55. > :07:56.Deutsche Bank says it "has no intention to settle these potential
:07:57. > :07:58.civil claims anywhere near the figure cited."
:07:59. > :08:02.The claim against Deutsche, which is likely to be
:08:03. > :08:03.negotiated for several months, far outstrips investor
:08:04. > :08:15.More bad news for Volkswagen, asset manager Blackrock and a group
:08:16. > :08:19.of institutional shareholders are to sue car maker Volkswagen
:08:20. > :08:24.They are to claim that VW failed to disclose its use of software
:08:25. > :08:36.defeat devices on diesel cars in a timely way.
:08:37. > :08:44.A quick look at the live page. This story has come in about Unilever. In
:08:45. > :08:50.talks to buy Honest. You may not have heard of this company, it is an
:08:51. > :08:57.organic baby and personal business in the US, founded by Jessica Alba.
:08:58. > :09:11.She does not often appear on the Business Page! If is a company with
:09:12. > :09:16.a start-up value of over $is. So it seems that the organic baby goods is
:09:17. > :09:19.big business and she is a Big Ben fishery.
:09:20. > :09:22.More woes for Samsung as the US Consumer Product Safety Commission
:09:23. > :09:24.has announced a recall of around one million
:09:25. > :09:30.These are the smartphones that have been plagued by incidents
:09:31. > :09:35.The move by the US safety agency formalises the recall underway in 10
:09:36. > :09:38.countries after reports of faulty batteries that caused some handsets
:09:39. > :09:54.He has been following the story. They must be really upset about
:09:55. > :09:58.this, the recall coming at a time when Apple has released the new
:09:59. > :10:03.iPhone 7. They are upset indeed. It is
:10:04. > :10:08.interesting, this is a formal recall, as opposed to the voluntary
:10:09. > :10:14.recall after the user complaints started about the exploding phones.
:10:15. > :10:19.The problem affects 1.5 million devices, including 1 million in the
:10:20. > :10:25.US. And according to the safety commission, Samsung should not be
:10:26. > :10:32.conducting the recall by itself, the product is such a fire hazard.
:10:33. > :10:38.So far there have been 26 reports of burns, 55 of property damage and
:10:39. > :10:44.last week Samsung started to advise people to stop using the device and
:10:45. > :10:51.limit the batteries of the Note.to 60% cap as whity by a software
:10:52. > :10:55.update and airlines have orderedariline passengers no to
:10:56. > :11:00.bring the phones on planes, unless they are turned off and not charged
:11:01. > :11:05.on the flights. This is all impacting Samsung negatively. The
:11:06. > :11:08.share prices have taken a tumble since the news broke.
:11:09. > :11:09.Thank you very much. And now the markets.
:11:10. > :11:13.Trading was light today in Asia, with key markets such as China,
:11:14. > :11:15.Hong Kong, South Korea, Malaysia and Taiwan closed for the mid-autumn
:11:16. > :11:20.European stocks are trading in the red -
:11:21. > :11:22.despite a solid lead coming from Japanese and Australian
:11:23. > :11:39.In the FTSE 100 it is lower. The big falls are the banks. RBS
:11:40. > :11:43.Samira Hussain has the details about what's ahead on Wall Street Today.
:11:44. > :11:46.Although it's the end of the week, it won't end without some
:11:47. > :11:49.The consumer price index for the month of August
:11:50. > :11:54.It was flat in the month of July, but analysts
:11:55. > :12:00.CPI is the last bit of economic data before the Federal Reserve,
:12:01. > :12:05.the US central bank, meets next week.
:12:06. > :12:11.Early consumer sentiment numbers are also out on Friday.
:12:12. > :12:14.How Americans are feeling about the state of the US
:12:15. > :12:16.economy is important - the more confident, the more likely
:12:17. > :12:19.they are to spend money, and that's crucial for an economy
:12:20. > :12:23.that depends so heavily on consumer spending.
:12:24. > :12:25.And finally, Apple's new iPhone 7 goes on sale in US stores.
:12:26. > :12:30.Despite the mixed reviews, Apple's newest edition
:12:31. > :12:33.to the iPhone family is very popular with consumers.
:12:34. > :12:47.Initial quantities of the iPhone 7 Plus have sold out globally.
:12:48. > :12:49.Joining us is Justin Urquhart-Stewart, Co-Founder
:12:50. > :12:55.Director of Seven Investment Management.
:12:56. > :13:03.Good morning, have you got the Friday feeling? No, it is raining
:13:04. > :13:09.and I am feeling damp! And did you get involved in the storms? Well, I
:13:10. > :13:12.was out late, and then up early this morning, I was straight off to
:13:13. > :13:15.sleep. Then off to here.
:13:16. > :13:20.So the markets, a damp start to Europe? It is in every single way.
:13:21. > :13:26.You can see what is happening, dominated by the news. You can hear
:13:27. > :13:33.what was happening with the Deutshe Bank. The numbers involved are
:13:34. > :13:40.significant. It is more than the entire capital
:13:41. > :13:44.of the bank with those numbers. But it is interesting when you look
:13:45. > :13:47.at what is happening in the markets, it is nervous.
:13:48. > :13:56.The Deutshe Bank is important in Europe. But it has had an awful
:13:57. > :14:01.year. At the beginning of the year, Schaeuble Chanel was telling the
:14:02. > :14:07.world that Deutshe Bank was OK. It was the big bang that would be
:14:08. > :14:16.fine but over the past few years we have seen the big banks suffer.
:14:17. > :14:20.But the market is nervous. Here we are in September, and real trading
:14:21. > :14:25.and the trading is concerned. It is a stormy September. That is what you
:14:26. > :14:30.will see, concerns over the rates rising and the figures to growth.
:14:31. > :14:35.This is a situation. Anything to get our teeth into? The
:14:36. > :14:40.information coming from the Fed. Are the rates going up? Yes, they are
:14:41. > :14:45.going to go up but slow and steady. They want to make sure that the
:14:46. > :14:49.story is not scaring the horses, that everyone knows where they are
:14:50. > :14:53.going. But the impact is a concern. People, it is strange, you look at
:14:54. > :14:56.the general commentary, you think that the economy is not doing well
:14:57. > :15:00.in the States but the statistics say it is doing OK.
:15:01. > :15:06.So I think unless we get figures that shake us off that, we should be
:15:07. > :15:13.looking through it. But the mar Cabinets are nervous, prepare for
:15:14. > :15:15.volatility. So forwise investors, with cash left over, maybe the time
:15:16. > :15:17.to use it in September. Thank you.
:15:18. > :15:38.The Inside Track on Hinkley Point and the merger between Bayer
:15:39. > :15:40.and Monsanto with our economics correspondent, Theo Leggett.
:15:41. > :15:42.You're with Business Live from BBC News.
:15:43. > :15:48.The amount of whiskey sold overseas has increased
:15:49. > :15:55.But industry bosses have warned the "uncertainties" caused
:15:56. > :16:04.by the Brexit vote will pose challenges for exporters.
:16:05. > :16:06.David Frost is the Chief Executive of the Scotch Whiskey Association
:16:07. > :16:17.Encouraging news today that sales have gone up, presumably whiskey is
:16:18. > :16:21.cheaper overseas because of the pound right now? That is right, the
:16:22. > :16:26.devaluation will eventually help but it will take time to feed through
:16:27. > :16:33.the system. I think the story for Scott W is a great one, we export
:16:34. > :16:37.90% of what is produced -- for Scotch whiskey. It is one of the
:16:38. > :16:42.biggest contributors to Britain's trade performance at the moment and
:16:43. > :16:46.we have doubled exports, it dipped a few percent in the last couple of
:16:47. > :16:50.years but what we are seeing now is returning to that strong growth
:16:51. > :16:56.pattern that we saw over the last Al-Qaeda, and we should all be
:16:57. > :16:59.excited and encouraged by that. One of the headwinds is Brexit and the
:17:00. > :17:03.negotiations when it comes to trade and what that will look like for
:17:04. > :17:08.your industry. How concerned are you buy things like tariffs? There are
:17:09. > :17:14.challenges and opportunities for Brexit. We know we will not face a
:17:15. > :17:17.tariff into the European market because of the rules so we are
:17:18. > :17:23.confident that will not change. There will be some changes around
:17:24. > :17:28.the world, perhaps for about 10% of the market, but there are also big
:17:29. > :17:31.opportunities. If the UK Government can get out there and negotiate its
:17:32. > :17:39.own trade agreements quicker than the EU is able to then it will be a
:17:40. > :17:43.great success and good for us. India is an example where the EU has not
:17:44. > :17:48.succeeded in negotiating a deal and maybe the UK can do better.
:17:49. > :17:54.Interesting. David Frost, thank you for joining us.
:17:55. > :17:56.This is a story that has caught our attention, Reuters has saying the
:17:57. > :18:04.general electorate will receive eight -- that general electric will
:18:05. > :18:07.receive a ?1.9 billion contract to supply steam turbines, generators
:18:08. > :18:12.and other equipment to the Hinkley Point C project.
:18:13. > :18:16.You're watching Business Live - our top story:
:18:17. > :18:20.EU leaders gather for a summit as they face up
:18:21. > :18:24.to a future without Britain, and the financial fallout.
:18:25. > :18:33.All in practice larva except Theresa May. Let's look at the markets.
:18:34. > :18:39.European markets, pretty flat, which is unusual because they had quite a
:18:40. > :18:44.big game in the Mackay overnight. A lot of the Asian markets are closed
:18:45. > :18:46.for a public holiday, bank stocks across Europe taking a battering
:18:47. > :18:54.this morning. We were talking about which of bank shares down, which is
:18:55. > :19:01.being felt across the UK market as well with RBS and Barclays down 2%
:19:02. > :19:06.and 5% respectively. It has been quite a week for
:19:07. > :19:10.business stories. The breaking news this time yesterday that the UK
:19:11. > :19:14.Government has approved the ?18 billion nuclear power station in the
:19:15. > :19:15.UK after imposing significant safeguards to protect national
:19:16. > :19:26.security on that. And chemical giant Bayer's
:19:27. > :19:29.$66 billion all-cash deal to acquire Here to talk about it,
:19:30. > :19:32.we are joined by our economics correspondent,
:19:33. > :19:37.Theo Leggett. You are part of the business Live
:19:38. > :19:41.family! Let's start with the Bayer Monsanto deal, it has been mooted
:19:42. > :19:44.for a while and finally they have said, we are dubbing ahead, but
:19:45. > :19:50.there is a long way to go? There is, a deal like this will need
:19:51. > :19:55.approval from shareholders. In Germany, Bayer is an national
:19:56. > :20:03.champion company but there is also a strong green movement in Germany and
:20:04. > :20:12.don't forget Monsanto is something of a bete noir because of its
:20:13. > :20:20.involvement in genetically modified products. But this is a major deal,
:20:21. > :20:24.worth $66 billion, and then maybe regulators in the United States and
:20:25. > :20:27.European Union who want to look at it on competition grounds, so it is
:20:28. > :20:31.not yet a done deal. I wonder whether it is in consumer
:20:32. > :20:36.interests to have these mega companies in every single industry,
:20:37. > :20:39.we are finding, that are dominating various consumer spaces?
:20:40. > :20:45.Let's not forget they don't always work and big mergers are often taken
:20:46. > :20:51.apart again further down the line, DaimlerChrysler is a good example of
:20:52. > :20:55.that. The companies in this case would the it is great for consumers
:20:56. > :21:01.because it will mean a wider range of products, crops can be grown more
:21:02. > :21:05.cheaply, the pesticides will be readily available and so on and so
:21:06. > :21:09.forth. On the other side of the coin, this major company will
:21:10. > :21:13.control a quarter of the global market for seeds and pesticides and
:21:14. > :21:16.some people think that is bad news because it reduces competition and
:21:17. > :21:18.put a lot of power in the hands of one company and prices could go up
:21:19. > :21:23.as a result. Let's talk about the other big story
:21:24. > :21:26.that broke yesterday, Hinkley Point getting the green light from the
:21:27. > :21:30.Government, it had been put on hold for a few months while Theresa May
:21:31. > :21:34.and her cabinet as tested to see if it was the right fit for the UK and
:21:35. > :21:38.they decided it is with some changes in the conditions?
:21:39. > :21:42.Yes, and the changes were not as big as some expected. It was approved on
:21:43. > :21:46.the condition that EDF, the French contractor which is paying the bulk
:21:47. > :21:50.of the costs and will be building and operating the power station,
:21:51. > :22:05.notifies the Government and gets formal approval before
:22:06. > :22:09.selling any of its stake. The question is why would EDF want to
:22:10. > :22:11.sell its stake and Hutu? The obvious candidate is China general nuclear
:22:12. > :22:14.Corporation which owns one third of the initial project and the idea
:22:15. > :22:16.that China might have a substantial influence over an essential piece of
:22:17. > :22:18.British infrastructure have raised concerns so it is clearly aimed at
:22:19. > :22:20.addressing that concern. Is this a triumph of political
:22:21. > :22:24.considerations above economic ones? Certainly the political risks of not
:22:25. > :22:27.going through with this would be quite high now. If you look at what
:22:28. > :22:32.is being planned here, the building of a new, very large, very
:22:33. > :22:37.complicated, unproven reactor design. The electricity it produces
:22:38. > :22:43.will be expensive, ?92 50 per megawatt hour, about $120, roughly
:22:44. > :22:48.double the current wholesale price of electricity, guaranteed for a 35
:22:49. > :22:52.year period, so many people say it is too expensive. On the other side
:22:53. > :22:57.of the coin, Britain needs new power stations. A number of old-fashioned
:22:58. > :23:01.ones, including some nuclear ones, will be decommissioned over the next
:23:02. > :23:06.ten years or so and the power they produce will need to be replaced.
:23:07. > :23:09.This one power station will provide 70% of the power needs and so there
:23:10. > :23:13.is enormous incentive to get it done now.
:23:14. > :23:22.And Q, fear, for joining us this week.
:23:23. > :23:27.In a moment we will take a look through the business pages, but a
:23:28. > :23:30.quick reminder of how to get in touch with us.
:23:31. > :23:34.The Business Live pages where you can stay ahead with all of the day's
:23:35. > :23:38.breaking business news. We will keep you up-to-date with the latest
:23:39. > :23:43.details, insight and analysis from the BBC's team of editors around the
:23:44. > :23:50.world, and we want to hear from you, as well. Get involved on the web
:23:51. > :23:56.page. You can find us on Twitter and Facebook. Business Live on TV and
:23:57. > :24:16.online, whenever you need to know. Justin is here.
:24:17. > :24:21.What is your Twitter handle? The other border was real thing, he
:24:22. > :24:30.did exist! Mine is boring.
:24:31. > :24:34.You should be on a cruise ship. UK bonus is soaring to ?44 billion,
:24:35. > :24:40.beating the pre-crash did for the first time.
:24:41. > :24:46.Flash people in red braces, I am pleased to say it is not the case!
:24:47. > :24:51.When you go through the article, it is interesting to compare what is
:24:52. > :24:54.going on here. Yes, bonuses have gone up but in terms of the
:24:55. > :24:59.percentages of the financial sector as opposed to PR, marketing... And
:25:00. > :25:06.legal, as well, the lawyers are getting richer by the day. What you
:25:07. > :25:12.find there, the percentage interest is 5.4% as opposed to financial
:25:13. > :25:19.services, 2.2%. Of the 44 billion, those honourable professions are
:25:20. > :25:23.taking 30 billion, so it is not necessarily the city fat cats.
:25:24. > :25:27.Bonuses are nowhere near the same scale as before and there are some
:25:28. > :25:31.leading companies, quite rightly, saying they will get rid of bonuses
:25:32. > :25:35.altogether because they should be paid clearly on simple
:25:36. > :25:38.performance-based salaries and probably shares in terms of longer
:25:39. > :25:42.term performances, and I think that is how it should always have been
:25:43. > :25:46.done, and good firms have always done so. You finished right on time,
:25:47. > :25:48.Justin, which is superb. Thank you for coming in today, enjoy your
:25:49. > :25:53.weekend. That is it from Business Live, more
:25:54. > :25:56.business news throughout the day and on the life page in world business
:25:57. > :26:02.report. Have a lovely weekend, goodbye.