:00:12. > :00:17.the wire, the EU battles to save its the wire, the EU battles to save its
:00:18. > :00:22.free-trade deal with Canada, but the clock is ticking. That's our top
:00:23. > :00:39.story today, Thursday the 27th of October.
:00:40. > :00:44.Canada's Prime Minister was due in Brussels to sign the deals but says
:00:45. > :00:49.he will not be leaving after work without an agreement. So with this
:00:50. > :00:53.deal at a standstill, what can the UK helped to broker when it starts
:00:54. > :00:58.to negotiate with the European Union. Samsung smartphone sales
:00:59. > :01:02.plummet after the exploding phone debacle. We will have the latest
:01:03. > :01:07.from our team in Asia. In Europe, the markets have started
:01:08. > :01:12.headed down but the winner in Germany is Deutsche Bank, after its
:01:13. > :01:18.surprise news it made some money. Selling peace of mind, why 24
:01:19. > :01:21.million customers across Africa, Asia and Latin America rely on one
:01:22. > :01:25.firm that offers insurance to safeguard their future. And, it is
:01:26. > :01:33.all done on a mobile phone. As the electric car maker Tesla
:01:34. > :01:47.reports profit for the time, would you convert to an electric vehicle?
:01:48. > :01:57.A warm welcome to the programme. It is jam-packed with stories. We will
:01:58. > :02:01.start in Brussels where we have talked about the fact that Justin
:02:02. > :02:06.Trudeau, the Prime Minister of Canada, was due to be in Brussels to
:02:07. > :02:11.sign a major free-trade deal with the European Union today. The
:02:12. > :02:14.reality is, as of last night, the deal is still blocked by regional
:02:15. > :02:19.parliament in Belgian. Talks to break the deadlock are underway
:02:20. > :02:24.right now. It is embarrassing for the EU, which has been struggling to
:02:25. > :02:31.show unity and restore its credibility after Britain's Brexit
:02:32. > :02:36.vote. What is at stake? The comprehensive economic and trade
:02:37. > :02:41.agreement aims to eliminate 98% of trade barriers between Canada and
:02:42. > :02:47.the EU. That could save EU exporters more than half $1 billion every
:02:48. > :02:52.year. Supporters say it will cause an increase in trade by 20% and
:02:53. > :02:55.would especially help small businesses. What is the other side
:02:56. > :03:01.of the argument? Critics say it would give too much power to big
:03:02. > :03:04.business and they point out EU regulation on things like product
:03:05. > :03:07.safety could be dire looted and multinationals will be able to sue
:03:08. > :03:14.governments if they don't get their own way. It has taken seven years to
:03:15. > :03:18.get to this point and 27 of 28 EU governments want to go ahead and
:03:19. > :03:22.sign the agreement, but Belgian cannot back the deal because three
:03:23. > :03:27.regional parliaments in the French-speaking part of the country
:03:28. > :03:33.are blocking it. There is wide implications. The row demonstrates
:03:34. > :03:41.how hard it may be for the UK to do a post Brexit trade deal with the
:03:42. > :03:49.EU. Late Wednesday, Canada's Trade Minister could hardly hide her
:03:50. > :03:53.frustration. Today, 27.5 member states of Europe to support this
:03:54. > :03:58.deal. As we have said on many occasions and I am happy to repeat,
:03:59. > :04:03.this is an excellent agreement. It is an agreement that, as the Prime
:04:04. > :04:09.Minister has just said, we made significantly more progressive since
:04:10. > :04:13.he came into office. I am going to disappoint the journalists, I am not
:04:14. > :04:19.at this time going to deal in hypotheticals. As of this moment,
:04:20. > :04:25.the summit remains on your's agender and on Canada's agenda. If there is
:04:26. > :04:28.a deal to sign tomorrow, Canada will be there. But the ball today is in
:04:29. > :04:32.Europe's courts. Allie Renison is the Head
:04:33. > :04:45.of Europe Trade policy Let's go back to basics, what is it
:04:46. > :04:50.the regional parliaments in Belgian is opposed to? On the face of it,
:04:51. > :04:57.they have issues with provisions around investments, so the ability
:04:58. > :05:01.for investors to sue government for forfeiture of property. It has
:05:02. > :05:08.become a big issue for Europe's public. Also imports of beef. Do you
:05:09. > :05:13.think we will get to the point where we will see this deal signed in the
:05:14. > :05:17.near future? One of the reasons people are being catastrophic about
:05:18. > :05:23.this, there was an artificial deadline set by the EU and Canada.
:05:24. > :05:28.It will probably take more time to work out some issues. But eventually
:05:29. > :05:33.it will probably be signed, probably not today. Away from the specific
:05:34. > :05:42.situation on the ground in Belgian, is it the feel that it is an
:05:43. > :05:53.anti-global movements? When you look at the amount of trade, the
:05:54. > :06:01.population of Belgian that does trade with Canada is under 1%. I
:06:02. > :06:06.think the Premier of the region which is effectively holding up this
:06:07. > :06:10.deal is being seen as the champion against globalisation. It is
:06:11. > :06:14.embarrassing, this situation as far as the EU is concerned with Justin
:06:15. > :06:20.Trudeau waiting in the wings to come to Brussels to sign it. What does it
:06:21. > :06:24.mean for the trans-Atlantic to an investment partnership and the UK
:06:25. > :06:29.looking to broker its own trade agreement? Canada deal is being seen
:06:30. > :06:35.as a dry test run. It is a more contentious issue and one of the
:06:36. > :06:43.reasons is when the negotiations started, you had the spying scandal
:06:44. > :06:46.that the NSA and Germany. That means it will be difficult for this to be
:06:47. > :06:50.completed. Europe will be learning lessons quickly by making sure this
:06:51. > :06:55.embarrassment doesn't happen again and we don't get to the situation
:06:56. > :06:59.where you have one country's vote holding up deals. When it comes to
:07:00. > :07:05.the Brexit deal, there are moving parts the UK and the EU will have to
:07:06. > :07:10.deal with, but trade globalisation deals are contentious and the Brexit
:07:11. > :07:18.deal will put up barriers. I think it will be more likely to see the
:07:19. > :07:19.Brexit signed. Thank you for explaining that. We will follow that
:07:20. > :07:25.story closely. Deutsche Bank has reported pre-tax
:07:26. > :07:28.profit of 675m dollars in the third quarter,
:07:29. > :07:36.despite analysts predicting a LOSS The company has increased how much
:07:37. > :07:40.it's set aside to deal Deutsche is currently negotiating
:07:41. > :07:43.with US authorities over a $14bn fine for alleged
:07:44. > :07:57.wrongdoing in the lead up The Financial Times is reporting the
:07:58. > :08:00.Bank of England has asked other institutions to declare what
:08:01. > :08:05.exposure they have two the German Lander and some of Italy's largest
:08:06. > :08:07.banks, the International Monetary front describe them as the riskiest
:08:08. > :08:09.bank. Electric car maker Tesla has
:08:10. > :08:16.reported profits of nearly $22 million for the third quarter -
:08:17. > :08:19.compared to a loss of 230 million dollars
:08:20. > :08:21.this time last year. That follows 13 loss-making
:08:22. > :08:23.quarters in a row. Record car deliveries helped offset
:08:24. > :08:25.rising expenses for next year's roll-out of the company's
:08:26. > :08:28.mass-market Model 3 saloon car. Shares jumped around 4%
:08:29. > :08:39.in after-hours trading. This may not come as a huge
:08:40. > :08:42.surprise, but it's a huge The tech giant saw its profits
:08:43. > :09:01.all but wiped out by the Galaxy Note Not a huge surprise but it shows the
:09:02. > :09:11.scale of this problem for Samsung? Correct, operating profits fell, but
:09:12. > :09:19.the operating profit plunged by 96%. This is due to the Galaxy note seven
:09:20. > :09:21.fiasco. Samsung has said it has written $5 billion in recall
:09:22. > :09:29.expenses because of what happened. But some analysts aren't so sure the
:09:30. > :09:32.entire cast of the scandal has been accounted for. Samsung hasn't
:09:33. > :09:38.announced what has caused the phone to catch fire. It is worth noting
:09:39. > :09:43.Samsung's earnings would have been worse if they didn't have a
:09:44. > :09:46.diversified business. They have a strong semiconductor and display
:09:47. > :09:49.panels division which helped with profit numbers. But we are still
:09:50. > :09:54.looking at the smartphone division, because that is where most of the
:09:55. > :09:59.money comes in from. They are hoping the recent episode with the Note
:10:00. > :10:03.seven will not scare buyers away. But analysts have said Samsung users
:10:04. > :10:07.are loyal and given Samsung controls about a quarter of the market, it
:10:08. > :10:12.will not be that easy to switch to other high-end smartphone providers.
:10:13. > :10:22.So some sunk the big story out of Korea today. Apple, and other
:10:23. > :10:27.companies have poor earnings. Let's look at Europe to see how the day is
:10:28. > :10:35.faring. Deutsche Bank shares opening up 3%, Barclays Bank up 2% and bolts
:10:36. > :10:38.wagon shares up by 4%. But overall, the markets are down. We will talk
:10:39. > :10:40.through what is happening in Europe in a moment.
:10:41. > :10:42.And Samira Hussain has the details about what's ahead
:10:43. > :10:51.Twitter will be reporting earnings on Thursday. The company wasn't
:10:52. > :10:56.meant to report until after markets close, but it has bowed to pressure
:10:57. > :10:59.from analysts who want to hear from the company before market is for
:11:00. > :11:05.trading. Twitter is struggling, not much use of growth and the company
:11:06. > :11:09.was trying to sell itself. But the room is bidders have backed out.
:11:10. > :11:13.Ford will also be reporting on earnings. The company is trying to
:11:14. > :11:18.maintain their profit margins as many are expecting a slowdown in new
:11:19. > :11:24.vehicle sales in the US. And finally, we will be hearing from the
:11:25. > :11:28.online retail giant Amazon. With the holiday season just around the
:11:29. > :11:29.corner, investors will want to know what the company is projecting for
:11:30. > :11:38.the next three months. Joining us is Kathleen Brooks,
:11:39. > :11:51.Research Director at City Index. Let's start with GDP, we have UK
:11:52. > :11:57.figures today. Expected to be about .3, .4% which is down from the
:11:58. > :12:02.second quarter of .7%. Slowdown of sorts, what does it mean to the Bank
:12:03. > :12:07.of England? It is the first three months of growth post Brexit. We
:12:08. > :12:11.have the inflation report from the Bank of England. This quarter of
:12:12. > :12:16.growth doesn't mean much. It will be next year we will see the key
:12:17. > :12:21.slowdown. The Bank of England has expected a massive slowdown in
:12:22. > :12:25.growth. No .8% for next year is their latest forecast. If there is a
:12:26. > :12:30.weaker number today that forecast could be cut. And next week is when
:12:31. > :12:35.we could see the real impact on the markets. Deutsche Bank surprisingly
:12:36. > :12:39.OK, Barclays Bank, these different results talking about how they are
:12:40. > :12:45.doing in this economic environment? We have had bad political news and
:12:46. > :12:50.economic worries. The market can get itself in tears. But with Deutsche
:12:51. > :12:56.Bank, they have eked out a profit. But we don't know how much of a fine
:12:57. > :12:58.there will have to pay. We don't know if they have whittled it down
:12:59. > :13:05.further and that will be when their share price will take off. Or
:13:06. > :13:11.otherwise, as the case may be. Earnings season has been OK. We have
:13:12. > :13:15.had big losers, with apple being the key one. It is their first loss in
:13:16. > :13:19.so many years, it cannot keep going up. Thank you so much, you will talk
:13:20. > :13:21.this through some of the paper stories.
:13:22. > :13:22.Still to come: Selling peace of mind.
:13:23. > :13:25.Why one firm is offering insurance for people in developing countries
:13:26. > :13:27.to safeguard their future if a family member dies.
:13:28. > :13:41.You're with Business Live from BBC News.
:13:42. > :13:44.And now a look at some of the stories from around the UK.
:13:45. > :13:46.Two of britain's blue chip companies have reported their latest
:13:47. > :13:49.Our Business Correspondent Andrew Walker joins us
:13:50. > :14:04.Pre-tax profit up Barclays Bank was down. The chief executive is still
:14:05. > :14:10.confident the restructuring he is leading is going ahead pretty much
:14:11. > :14:15.as planned. It is an effort to focus the bank more on the UK and US
:14:16. > :14:19.markets, pulling away from other parts of the world. The brief
:14:20. > :14:23.history of Barclays Bank over the course of the financial crisis, the
:14:24. > :14:30.share price gained strongly up until the end of 2006 and then plummeted,
:14:31. > :14:34.as did so many. Recovered a bit, but is still bumping along at a
:14:35. > :14:39.relatively low levels. The other striking thing in these figures was
:14:40. > :14:44.the provision bank is made for compensation who have been mis-sold
:14:45. > :14:48.payment protection insurance. The figure was ?600 million. Lloyds said
:14:49. > :14:55.they were confident there would be any more large provisions required.
:14:56. > :14:59.And the chief executive of Barclays Bank was saying something similar.
:15:00. > :15:06.They think they have the reserves right for this issue. What about BT?
:15:07. > :15:13.Their profits, depending on what figure, they are up by ?873 million.
:15:14. > :15:22.Revenue up by 35% and that has a lot to do with the acquisition of the
:15:23. > :15:26.mobile operator EE. Even if you take that out of the figures, revenue was
:15:27. > :15:33.still going up. Also Openreach, the network that provides the wires and
:15:34. > :15:37.the controversy. There is this argument about whether BT should
:15:38. > :15:42.have to dispose of that operation, but the profits continue to roll in
:15:43. > :15:44.nonetheless under executive described these as positive results.
:15:45. > :15:56.Thank you, Andrew Walker. It is a busy morning, certainly.
:15:57. > :16:04.Going to be live page, Debenhams is the story I wanted to show,
:16:05. > :16:08.reporting a 10% drop in profit. Details on the website. The BBC
:16:09. > :16:14.business live page. You're watching Business Live -
:16:15. > :16:18.our top story: The Canadian Prime Minister has scrapped a planned trip
:16:19. > :16:22.to Brussels today after the EU failed to agree a controversial free
:16:23. > :16:25.trade deal with the country - over opposition from a Belgian
:16:26. > :16:34.regional parliament. Belgium is trying to negotiate with
:16:35. > :16:36.its regional parliaments over a few points they are not happy with. To
:16:37. > :16:39.put it mildly. A quick look at how
:16:40. > :16:47.markets are faring. The FTSE 100 is down at the moment,
:16:48. > :16:49.but we get the third quarter GDP figures very shortly and that could
:16:50. > :16:53.have an effect on the numbers. This And now let's get the inside track
:16:54. > :16:56.on micro This insurance. It's a growing business around
:16:57. > :16:58.the world that provides protection Micro insurance can be used
:16:59. > :17:02.to safeguard against a wide range of events including the loss
:17:03. > :17:04.of belongings, livestock One estimate by Swiss RE says
:17:05. > :17:09.that the 4 billion people around the world could benefit from micro
:17:10. > :17:11.insurance that means, for example, paying a small
:17:12. > :17:15.premium of 60 cents a month on a rolling basis for accident
:17:16. > :17:17.or life insurance. The potential payout from that
:17:18. > :17:22.could be $1,000 dollars if the insured person
:17:23. > :17:31.lost their life. It's often provided
:17:32. > :17:33.through mobile phones rather BIMA is one company
:17:34. > :17:39.that's leading the charge Mathilda Str m is the company's
:17:40. > :17:56.Deputy CEO Head of it is? BIMA. It means in assurance
:17:57. > :18:03.in Swahili and other languages -- insurance. That is pretty
:18:04. > :18:10.interesting. We think it comes from Sanskrit. Going back to basics, we
:18:11. > :18:17.have spoken about this being sold via mobile phones and we know many
:18:18. > :18:22.banks and finance in Africa, places like that, it is done on mobile
:18:23. > :18:26.phones. If we take it back to the average customer, they live under
:18:27. > :18:30.$10 a day and they don't have a banking account, but they do carry a
:18:31. > :18:34.phone. That phone doesn't have to be a smartphone, but they can still
:18:35. > :18:40.register for an insurance policy and pay for it. They can register by
:18:41. > :18:44.answering five simple questions, no paperwork, no health checks, and
:18:45. > :18:48.they have an insurance policy. They can pay for it using their
:18:49. > :18:53.pay-as-you-go credit, by deducting 2 cents a day we can allow them to get
:18:54. > :18:59.access to insurance. How does this work on a practical level? For me to
:19:00. > :19:02.take out insurance in the UK I have got to sign the paperwork and make
:19:03. > :19:08.declarations and I might have to go for a medical. You have cut that
:19:09. > :19:12.out. At the starting point only 2% of people in Alaba tips has
:19:13. > :19:18.insurance and that means 98% of people are not insured -- 2% of
:19:19. > :19:24.people in our markets have insurance. Here we have a great
:19:25. > :19:29.variety. But we choose one risk rate for 90% of the people and we hedge
:19:30. > :19:35.our risk across the mass-market. How'd you make it financially
:19:36. > :19:38.viable? They are not paying much for the insurance, and they must be
:19:39. > :19:42.fairly high-risk customers, when you haven't done a health check and they
:19:43. > :19:47.are living in Africa or emerging markets where they might have
:19:48. > :19:53.accidents and they might get on well or have something go wrong. It must
:19:54. > :19:59.be quite high risk? You could say it is high risk, but the key thing for
:20:00. > :20:04.making it successful is scale, and technology, mobile technology, that
:20:05. > :20:08.helps it and it helps to eliminate costs and allows more people to
:20:09. > :20:15.register, regarding risks, when it comes to insurance, we are paying
:20:16. > :20:24.out about $1000 in claims, and that can have a salary of around 2-3
:20:25. > :20:30.years, but for us that is just $1000. Everyone can see the value of
:20:31. > :20:34.insurance for goods and property, and then we get into life property
:20:35. > :20:39.and livelihood and farming, that kind of stuff. That is the
:20:40. > :20:46.livelihoods are many people in parts of Africa. How does that work? Why
:20:47. > :20:49.is that so important? If we take an example of a woman who was paid a
:20:50. > :20:54.claim in Pakistan last year, her husband passed away in a tragic
:20:55. > :21:00.drive-by shooting in Islam a bad and she had four children and he was the
:21:01. > :21:03.only breadwinner. She was paid out $3000 which effectively allowed her
:21:04. > :21:09.to send her eldest son to graduate school and allowed at least two
:21:10. > :21:14.years of salary placement which her husband would have had. If she
:21:15. > :21:20.hasn't got a bank account, how'd you get the money to her? Effectively a
:21:21. > :21:27.mobile bank account, we can send it straight to her. All sitting on her
:21:28. > :21:29.phone? Yes. Very interesting. Best of luck with that project and thanks
:21:30. > :21:32.for talking to us. Mathilda Str m is the company's
:21:33. > :21:35.Deputy CEO Head of In a moment we'll take a look
:21:36. > :21:40.through the Business Pages but first here's a quick reminder of how
:21:41. > :21:50.to get in touch with us. The business live pages where you
:21:51. > :21:55.can stay ahead with the breaking news, we keep you up-to-date with
:21:56. > :22:00.the latest details, with insight and analysis from the BBC's team of
:22:01. > :22:07.editors from around the world. We want to hear from you, as well. Get
:22:08. > :22:15.involved. You can do this through twitter and Facebook. Business live
:22:16. > :22:22.on TV and online whenever you need to know. Thank you for getting in
:22:23. > :22:29.touch, we asked if you are ready to plug in, because Tesla it is
:22:30. > :22:37.actually making profits for the first time. Fabrice Santoro he will
:22:38. > :22:42.switch to an eco-friendly car -- says he will switch. He is
:22:43. > :22:47.convinced. Jerome says he will buy an electric car and he says there is
:22:48. > :22:52.no way to charge without a long extension. I don't agree with that,
:22:53. > :22:59.I see charging points everywhere in London. You must live somewhere
:23:00. > :23:04.quite fancy. I don't actually live in London. Another one says,
:23:05. > :23:11.hopefully safety will be a priority. What other business
:23:12. > :23:13.stories has the media been Kathleen Brooks is joining
:23:14. > :23:20.us again to discuss. Going to the trade deal between
:23:21. > :23:27.Europe and Canada, questions about what kind of relationship the UK
:23:28. > :23:34.will have with Europe. Glaxo is in the spotlight, they say they will
:23:35. > :23:37.get a bonus because Brexit is worth extra money to Glaxo, this is
:23:38. > :23:44.because of the weak pound? Yes, this is a one-off bonus, otherwise the
:23:45. > :23:47.pound would be worth nurturing a thing, and they have done quite well
:23:48. > :23:54.and they don't seem to be worried about Brexit -- the pound would be
:23:55. > :23:58.worth virtually nothing. There are challenges for them going forward,
:23:59. > :24:01.the uncertainty around Brexit and our relationship with the EU is
:24:02. > :24:05.going to affect the drug producers because they don't know things like
:24:06. > :24:11.patents and being able to sell their drugs across the EU. That is a
:24:12. > :24:15.massive market for them. There will be clarity about the law in terms of
:24:16. > :24:22.regulation. In terms of drugs in Europe and the UK and how that
:24:23. > :24:25.works. They need very particular skills, and it seems the outgoing
:24:26. > :24:28.chief executive sounds quite positive that the deal will be
:24:29. > :24:32.struck and that is quite interesting. In the markets we don't
:24:33. > :24:36.know anything about Brexit, but when you get big bosses like this saying
:24:37. > :24:42.we could fill the Labour shortage, that is positive. We have spoken
:24:43. > :24:45.about the results for Apple, not great, considering the record
:24:46. > :24:55.figures we normally see, but the wireless in bugs have been launched.
:24:56. > :25:07.These might not be ready in time -- ear. They have this -- coming out,
:25:08. > :25:10.and I think they have dismissed the idea of wires coming out, but they
:25:11. > :25:17.will have an uphill battle to sell these things. Very bad timing, they
:25:18. > :25:23.should be stealing the march with Samsung having a problem at the
:25:24. > :25:32.moment. That is right. Strikes me as a rare miss for Apple. What about
:25:33. > :25:36.this regarding craft beer? We are swimming in craft beer, it seems
:25:37. > :25:40.like we have reached peak craft peer, but some of that might not be
:25:41. > :25:43.as microbrewery as you think, because there has been a wave of
:25:44. > :25:49.consolidation and buyouts, and you only have a few, brew dog says he
:25:50. > :25:52.will not sell out, but many are. Catherine, thanks for joining us.
:25:53. > :26:15.Good morning. Similar day ahead for most parts of the UK. We are based
:26:16. > :26:18.in a