27/10/2016 BBC Business Live

the wire, the EU battles to save its the wire, the EU battles to save its

free-trade deal with Canada, but the clock is ticking. That's our top

story today, Thursday the 27th of October.

Canada's Prime Minister was due in Brussels to sign the deals but says

he will not be leaving after work without an agreement. So with this

deal at a standstill, what can the UK helped to broker when it starts

to negotiate with the European Union. Samsung smartphone sales

plummet after the exploding phone debacle. We will have the latest

from our team in Asia. In Europe, the markets have started

headed down but the winner in Germany is Deutsche Bank, after its

surprise news it made some money. Selling peace of mind, why 24

million customers across Africa, Asia and Latin America rely on one

firm that offers insurance to safeguard their future. And, it is

all done on a mobile phone. As the electric car maker Tesla

reports profit for the time, would you convert to an electric vehicle?

A warm welcome to the programme. It is jam-packed with stories. We will

start in Brussels where we have talked about the fact that Justin

Trudeau, the Prime Minister of Canada, was due to be in Brussels to

sign a major free-trade deal with the European Union today. The

reality is, as of last night, the deal is still blocked by regional

parliament in Belgian. Talks to break the deadlock are underway

right now. It is embarrassing for the EU, which has been struggling to

show unity and restore its credibility after Britain's Brexit

vote. What is at stake? The comprehensive economic and trade

agreement aims to eliminate 98% of trade barriers between Canada and

the EU. That could save EU exporters more than half $1 billion every

year. Supporters say it will cause an increase in trade by 20% and

would especially help small businesses. What is the other side

of the argument? Critics say it would give too much power to big

business and they point out EU regulation on things like product

safety could be dire looted and multinationals will be able to sue

governments if they don't get their own way. It has taken seven years to

get to this point and 27 of 28 EU governments want to go ahead and

sign the agreement, but Belgian cannot back the deal because three

regional parliaments in the French-speaking part of the country

are blocking it. There is wide implications. The row demonstrates

how hard it may be for the UK to do a post Brexit trade deal with the

EU. Late Wednesday, Canada's Trade Minister could hardly hide her

frustration. Today, 27.5 member states of Europe to support this

deal. As we have said on many occasions and I am happy to repeat,

this is an excellent agreement. It is an agreement that, as the Prime

Minister has just said, we made significantly more progressive since

he came into office. I am going to disappoint the journalists, I am not

at this time going to deal in hypotheticals. As of this moment,

the summit remains on your's agender and on Canada's agenda. If there is

a deal to sign tomorrow, Canada will be there. But the ball today is in

Europe's courts. Allie Renison is the Head

of Europe Trade policy Let's go back to basics, what is it

the regional parliaments in Belgian is opposed to? On the face of it,

they have issues with provisions around investments, so the ability

for investors to sue government for forfeiture of property. It has

become a big issue for Europe's public. Also imports of beef. Do you

think we will get to the point where we will see this deal signed in the

near future? One of the reasons people are being catastrophic about

this, there was an artificial deadline set by the EU and Canada.

It will probably take more time to work out some issues. But eventually

it will probably be signed, probably not today. Away from the specific

situation on the ground in Belgian, is it the feel that it is an

anti-global movements? When you look at the amount of trade, the

population of Belgian that does trade with Canada is under 1%. I

think the Premier of the region which is effectively holding up this

deal is being seen as the champion against globalisation. It is

embarrassing, this situation as far as the EU is concerned with Justin

Trudeau waiting in the wings to come to Brussels to sign it. What does it

mean for the trans-Atlantic to an investment partnership and the UK

looking to broker its own trade agreement? Canada deal is being seen

as a dry test run. It is a more contentious issue and one of the

reasons is when the negotiations started, you had the spying scandal

that the NSA and Germany. That means it will be difficult for this to be

completed. Europe will be learning lessons quickly by making sure this

embarrassment doesn't happen again and we don't get to the situation

where you have one country's vote holding up deals. When it comes to

the Brexit deal, there are moving parts the UK and the EU will have to

deal with, but trade globalisation deals are contentious and the Brexit

deal will put up barriers. I think it will be more likely to see the

Brexit signed. Thank you for explaining that. We will follow that

story closely. Deutsche Bank has reported pre-tax

profit of 675m dollars in the third quarter,

despite analysts predicting a LOSS The company has increased how much

it's set aside to deal Deutsche is currently negotiating

with US authorities over a $14bn fine for alleged

wrongdoing in the lead up The Financial Times is reporting the

Bank of England has asked other institutions to declare what

exposure they have two the German Lander and some of Italy's largest

banks, the International Monetary front describe them as the riskiest

bank. Electric car maker Tesla has

reported profits of nearly $22 million for the third quarter -

compared to a loss of 230 million dollars

this time last year. That follows 13 loss-making

quarters in a row. Record car deliveries helped offset

rising expenses for next year's roll-out of the company's

mass-market Model 3 saloon car. Shares jumped around 4%

in after-hours trading. This may not come as a huge

surprise, but it's a huge The tech giant saw its profits

all but wiped out by the Galaxy Note Not a huge surprise but it shows the

scale of this problem for Samsung? Correct, operating profits fell, but

the operating profit plunged by 96%. This is due to the Galaxy note seven

fiasco. Samsung has said it has written $5 billion in recall

expenses because of what happened. But some analysts aren't so sure the

entire cast of the scandal has been accounted for. Samsung hasn't

announced what has caused the phone to catch fire. It is worth noting

Samsung's earnings would have been worse if they didn't have a

diversified business. They have a strong semiconductor and display

panels division which helped with profit numbers. But we are still

looking at the smartphone division, because that is where most of the

money comes in from. They are hoping the recent episode with the Note

seven will not scare buyers away. But analysts have said Samsung users

are loyal and given Samsung controls about a quarter of the market, it

will not be that easy to switch to other high-end smartphone providers.

So some sunk the big story out of Korea today. Apple, and other

companies have poor earnings. Let's look at Europe to see how the day is

faring. Deutsche Bank shares opening up 3%, Barclays Bank up 2% and bolts

wagon shares up by 4%. But overall, the markets are down. We will talk

through what is happening in Europe in a moment.

And Samira Hussain has the details about what's ahead

Twitter will be reporting earnings on Thursday. The company wasn't

meant to report until after markets close, but it has bowed to pressure

from analysts who want to hear from the company before market is for

trading. Twitter is struggling, not much use of growth and the company

was trying to sell itself. But the room is bidders have backed out.

Ford will also be reporting on earnings. The company is trying to

maintain their profit margins as many are expecting a slowdown in new

vehicle sales in the US. And finally, we will be hearing from the

online retail giant Amazon. With the holiday season just around the

corner, investors will want to know what the company is projecting for

the next three months. Joining us is Kathleen Brooks,

Research Director at City Index. Let's start with GDP, we have UK

figures today. Expected to be about .3, .4% which is down from the

second quarter of .7%. Slowdown of sorts, what does it mean to the Bank

of England? It is the first three months of growth post Brexit. We

have the inflation report from the Bank of England. This quarter of

growth doesn't mean much. It will be next year we will see the key

slowdown. The Bank of England has expected a massive slowdown in

growth. No .8% for next year is their latest forecast. If there is a

weaker number today that forecast could be cut. And next week is when

we could see the real impact on the markets. Deutsche Bank surprisingly

OK, Barclays Bank, these different results talking about how they are

doing in this economic environment? We have had bad political news and

economic worries. The market can get itself in tears. But with Deutsche

Bank, they have eked out a profit. But we don't know how much of a fine

there will have to pay. We don't know if they have whittled it down

further and that will be when their share price will take off. Or

otherwise, as the case may be. Earnings season has been OK. We have

had big losers, with apple being the key one. It is their first loss in

so many years, it cannot keep going up. Thank you so much, you will talk

this through some of the paper stories.

Still to come: Selling peace of mind.

Why one firm is offering insurance for people in developing countries

to safeguard their future if a family member dies.

You're with Business Live from BBC News.

And now a look at some of the stories from around the UK.

Two of britain's blue chip companies have reported their latest

Our Business Correspondent Andrew Walker joins us

Pre-tax profit up Barclays Bank was down. The chief executive is still

confident the restructuring he is leading is going ahead pretty much

as planned. It is an effort to focus the bank more on the UK and US

markets, pulling away from other parts of the world. The brief

history of Barclays Bank over the course of the financial crisis, the

share price gained strongly up until the end of 2006 and then plummeted,

as did so many. Recovered a bit, but is still bumping along at a

relatively low levels. The other striking thing in these figures was

the provision bank is made for compensation who have been mis-sold

payment protection insurance. The figure was ?600 million. Lloyds said

they were confident there would be any more large provisions required.

And the chief executive of Barclays Bank was saying something similar.

They think they have the reserves right for this issue. What about BT?

Their profits, depending on what figure, they are up by ?873 million.

Revenue up by 35% and that has a lot to do with the acquisition of the

mobile operator EE. Even if you take that out of the figures, revenue was

still going up. Also Openreach, the network that provides the wires and

the controversy. There is this argument about whether BT should

have to dispose of that operation, but the profits continue to roll in

nonetheless under executive described these as positive results.

Thank you, Andrew Walker. It is a busy morning, certainly.

Going to be live page, Debenhams is the story I wanted to show,

reporting a 10% drop in profit. Details on the website. The BBC

business live page. You're watching Business Live -

our top story: The Canadian Prime Minister has scrapped a planned trip

to Brussels today after the EU failed to agree a controversial free

trade deal with the country - over opposition from a Belgian

regional parliament. Belgium is trying to negotiate with

its regional parliaments over a few points they are not happy with. To

put it mildly. A quick look at how

markets are faring. The FTSE 100 is down at the moment,

but we get the third quarter GDP figures very shortly and that could

have an effect on the numbers. This And now let's get the inside track

on micro This insurance. It's a growing business around

the world that provides protection Micro insurance can be used

to safeguard against a wide range of events including the loss

of belongings, livestock One estimate by Swiss RE says

that the 4 billion people around the world could benefit from micro

insurance that means, for example, paying a small

premium of 60 cents a month on a rolling basis for accident

or life insurance. The potential payout from that

could be $1,000 dollars if the insured person

lost their life. It's often provided

through mobile phones rather BIMA is one company

that's leading the charge Mathilda Str m is the company's

Deputy CEO Head of it is? BIMA. It means in assurance

in Swahili and other languages -- insurance. That is pretty

interesting. We think it comes from Sanskrit. Going back to basics, we

have spoken about this being sold via mobile phones and we know many

banks and finance in Africa, places like that, it is done on mobile

phones. If we take it back to the average customer, they live under

$10 a day and they don't have a banking account, but they do carry a

phone. That phone doesn't have to be a smartphone, but they can still

register for an insurance policy and pay for it. They can register by

answering five simple questions, no paperwork, no health checks, and

they have an insurance policy. They can pay for it using their

pay-as-you-go credit, by deducting 2 cents a day we can allow them to get

access to insurance. How does this work on a practical level? For me to

take out insurance in the UK I have got to sign the paperwork and make

declarations and I might have to go for a medical. You have cut that

out. At the starting point only 2% of people in Alaba tips has

insurance and that means 98% of people are not insured -- 2% of

people in our markets have insurance. Here we have a great

variety. But we choose one risk rate for 90% of the people and we hedge

our risk across the mass-market. How'd you make it financially

viable? They are not paying much for the insurance, and they must be

fairly high-risk customers, when you haven't done a health check and they

are living in Africa or emerging markets where they might have

accidents and they might get on well or have something go wrong. It must

be quite high risk? You could say it is high risk, but the key thing for

making it successful is scale, and technology, mobile technology, that

helps it and it helps to eliminate costs and allows more people to

register, regarding risks, when it comes to insurance, we are paying

out about $1000 in claims, and that can have a salary of around 2-3

years, but for us that is just $1000. Everyone can see the value of

insurance for goods and property, and then we get into life property

and livelihood and farming, that kind of stuff. That is the

livelihoods are many people in parts of Africa. How does that work? Why

is that so important? If we take an example of a woman who was paid a

claim in Pakistan last year, her husband passed away in a tragic

drive-by shooting in Islam a bad and she had four children and he was the

only breadwinner. She was paid out $3000 which effectively allowed her

to send her eldest son to graduate school and allowed at least two

years of salary placement which her husband would have had. If she

hasn't got a bank account, how'd you get the money to her? Effectively a

mobile bank account, we can send it straight to her. All sitting on her

phone? Yes. Very interesting. Best of luck with that project and thanks

for talking to us. Mathilda Str m is the company's

Deputy CEO Head of In a moment we'll take a look

through the Business Pages but first here's a quick reminder of how

to get in touch with us. The business live pages where you

can stay ahead with the breaking news, we keep you up-to-date with

the latest details, with insight and analysis from the BBC's team of

editors from around the world. We want to hear from you, as well. Get

involved. You can do this through twitter and Facebook. Business live

on TV and online whenever you need to know. Thank you for getting in

touch, we asked if you are ready to plug in, because Tesla it is

actually making profits for the first time. Fabrice Santoro he will

switch to an eco-friendly car -- says he will switch. He is

convinced. Jerome says he will buy an electric car and he says there is

no way to charge without a long extension. I don't agree with that,

I see charging points everywhere in London. You must live somewhere

quite fancy. I don't actually live in London. Another one says,

hopefully safety will be a priority. What other business

stories has the media been Kathleen Brooks is joining

us again to discuss. Going to the trade deal between

Europe and Canada, questions about what kind of relationship the UK

will have with Europe. Glaxo is in the spotlight, they say they will

get a bonus because Brexit is worth extra money to Glaxo, this is

because of the weak pound? Yes, this is a one-off bonus, otherwise the

pound would be worth nurturing a thing, and they have done quite well

and they don't seem to be worried about Brexit -- the pound would be

worth virtually nothing. There are challenges for them going forward,

the uncertainty around Brexit and our relationship with the EU is

going to affect the drug producers because they don't know things like

patents and being able to sell their drugs across the EU. That is a

massive market for them. There will be clarity about the law in terms of

regulation. In terms of drugs in Europe and the UK and how that

works. They need very particular skills, and it seems the outgoing

chief executive sounds quite positive that the deal will be

struck and that is quite interesting. In the markets we don't

know anything about Brexit, but when you get big bosses like this saying

we could fill the Labour shortage, that is positive. We have spoken

about the results for Apple, not great, considering the record

figures we normally see, but the wireless in bugs have been launched.

These might not be ready in time -- ear. They have this -- coming out,

and I think they have dismissed the idea of wires coming out, but they

will have an uphill battle to sell these things. Very bad timing, they

should be stealing the march with Samsung having a problem at the

moment. That is right. Strikes me as a rare miss for Apple. What about

this regarding craft beer? We are swimming in craft beer, it seems

like we have reached peak craft peer, but some of that might not be

as microbrewery as you think, because there has been a wave of

consolidation and buyouts, and you only have a few, brew dog says he

will not sell out, but many are. Catherine, thanks for joining us.

Good morning. Similar day ahead for most parts of the UK. We are based

in a