0:00:04 > 0:00:07This is Business Live from BBC News with Jamie Robertson
0:00:07 > 0:00:09and Sally Bundock.
0:00:09 > 0:00:11Uncertainty with a capital U - what now for Chancellor Angela
0:00:11 > 0:00:13Merkel after talks to form a coalition government
0:00:13 > 0:00:15in Germany collapse?
0:00:15 > 0:00:25Live from London, that's our top story on Monday, 20th November.
0:00:36 > 0:00:40Could fresh elections be on the cards in Germany at a time
0:00:40 > 0:00:44when the EU needs strong leadership more than ever?
0:00:44 > 0:00:48Also in the programme - bye-bye after Brexit -
0:00:48 > 0:00:51two important EU agencies currently in London will have to find
0:00:51 > 0:01:01a new home now that the UK is leaving the EU.
0:01:05 > 0:01:08Turning waste into treasure - we'll hear from one company that
0:01:08 > 0:01:16uses leftovers to make luxury goods.
0:01:16 > 0:01:17Would you buy upcycled goods?
0:01:17 > 0:01:20Do you reinvent things that you don't use any more?
0:01:20 > 0:01:30Let us know - use the hashtag BBCBizLive.
0:01:31 > 0:01:34Hello and welcome to Business Live.
0:01:34 > 0:01:40The euro fell against major currencies on Monday as coalition
0:01:40 > 0:01:42talks in Germany collapsed, throwing Angela Merkel's future
0:01:42 > 0:01:45into doubt and creating uncertainty in Europe's largest economy.
0:01:45 > 0:01:55Eight weeks of negotiations following September's
0:02:03 > 0:02:06general election fell apart,
0:02:06 > 0:02:10with the centrist Free Democrats, led by Christian
0:02:10 > 0:02:11Lindner, pulling out.
0:02:11 > 0:02:14It leaves Angela Merkel with few options given her stated objections
0:02:14 > 0:02:15to ruling as a minority government.
0:02:15 > 0:02:17Later Mrs Merkel will meet the German President Frank-Walter
0:02:17 > 0:02:19Steinmeier who could call a new election.
0:02:19 > 0:02:21Jenny Hill is in Berlin for us.
0:02:21 > 0:02:24What went wrong with the negotiations?It was always going to
0:02:24 > 0:02:27be tricky bringing together these three very different political
0:02:27 > 0:02:30groupings, Mrs Merkel's Conservatives, the Green Party, with
0:02:30 > 0:02:35their environmental stance, and the Free Democrats, the pro-business
0:02:35 > 0:02:41party. The main sticking points are immigration and refugee policy, but
0:02:41 > 0:02:44also environmental policies, warmer with a lot of toing and froing over,
0:02:44 > 0:02:49for example, coal powered energy production in Germany. They are very
0:02:49 > 0:02:55disparate parties. But there was a sense that the leaders of those
0:02:55 > 0:03:00parties were' somewhat. There was an element of theatre to the
0:03:00 > 0:03:03proceedings. Germany has been very surprised that Christian Lindner's
0:03:03 > 0:03:10decision to pull out of the talks, particularly as bit by painful bit,
0:03:10 > 0:03:13compromises were slowly eking out. There was a sense that a bit more
0:03:13 > 0:03:18talking could have resulted in a coalition government. It wasn't to
0:03:18 > 0:03:20be, and Germany now faces a crisis which is unprecedented in post-war
0:03:20 > 0:03:28German politics and may represent the end of the Merkel era. So a lot
0:03:28 > 0:03:32of uncertainty this morning, which of course spreads well beyond
0:03:32 > 0:03:37Germany and not just economically. Mrs Merkel was not at a summit of EU
0:03:37 > 0:03:41leaders in Sweden last week. She was sat at the negotiating table. To
0:03:41 > 0:03:45date she has cancelled a planned meeting with the Dutch leader. She
0:03:45 > 0:03:50is going to have to focus now on domestic affairs and fight for her
0:03:50 > 0:03:53own political survival. That will have implications across Europe,
0:03:53 > 0:03:58perhaps even the rest of the world.
0:03:58 > 0:04:00Simon Derrick is Chief Markets Strategist at the Bank
0:04:00 > 0:04:04of New York Mellon.
0:04:04 > 0:04:09You were listening to Jenny outlining what went wrong and what
0:04:09 > 0:04:16this means. She said it is very uncertain as to what happens next.
0:04:16 > 0:04:20When you look at how markets reacted, one of the big stories this
0:04:20 > 0:04:26year has been market concerns about the rise of populism within Europe
0:04:26 > 0:04:30and specifically around the elections. We had the French
0:04:30 > 0:04:32presidential election, the Dutch general election. There are concerns
0:04:32 > 0:04:36about the Italian general election coming up. In a lot of ways, the
0:04:36 > 0:04:41German election was seen as being the safety. Even when FT came in and
0:04:41 > 0:04:46won their 13%, Angela Merkel was still seen as being the safe leader.
0:04:46 > 0:04:52The uncertainty that is now being thrown in by the lack of a coalition
0:04:52 > 0:04:56being formed will obviously focus people back on politics.What about
0:04:56 > 0:05:02the effect on the Eurozone? Germany has dominated the way we have gone
0:05:02 > 0:05:08through the Eurozone crisis in terms of the periphery countries like
0:05:08 > 0:05:13Greece, Portugal and Spain. Do you think that relationship will change,
0:05:13 > 0:05:17because they have been so strict about no forgiveness of their debt?
0:05:17 > 0:05:21It's good. It depends on the nature of the government that comes in. If
0:05:21 > 0:05:24we have something that is more right-leaning and fiscally steer,
0:05:24 > 0:05:29they could prove to be even harsher on some of those peripheral
0:05:29 > 0:05:34countries. Even if we end up with parties which are more centrist,
0:05:34 > 0:05:40they may be more relaxed. But the Eurozone crisis has been going for
0:05:40 > 0:05:44seven years. Nobody wants to rock the boat at this point.And what
0:05:44 > 0:05:49does it mean for the other issues regarding Brexit? We have the summit
0:05:49 > 0:05:55next month. We have Theresa May and her cabinet meeting today, and we
0:05:55 > 0:06:02are told they will discuss a better divorce Bill. If a new election is
0:06:02 > 0:06:08called in Germany, do you think that would delay?At the moment, we still
0:06:08 > 0:06:11have this drive by all the leadership towards this negotiation
0:06:11 > 0:06:22position. It is diving towards getting the divorce Bill sorted out.
0:06:22 > 0:06:26It is unlikely to derail things immediately. But if we have a new
0:06:26 > 0:06:29government coming in, maybe they will have a different view. If it
0:06:29 > 0:06:36was more populist intone, maybe they would be more against Brussels and
0:06:36 > 0:06:41everything that accompanies that. Simon, you will return. He has more
0:06:41 > 0:06:44stories to get his teeth into later.
0:06:44 > 0:06:47Let's take a look at some of the other stories making the news.
0:06:47 > 0:06:49Toshiba shares fell sharply after board members approved a plan
0:06:49 > 0:06:52to raise more than $5 billion by issuing new shares.
0:06:52 > 0:06:55It will help plug a hole in its finances left by its bankrupt
0:06:55 > 0:07:02US nuclear subsidiary and avoid being delisted in Tokyo.
0:07:02 > 0:07:07It's an important day for Brexit negotiations with UK
0:07:07 > 0:07:13Prime Minister's cabinet to discuss an improved divorce bill.
0:07:13 > 0:07:15Brussels says Britain's offer to settle outstanding financial
0:07:15 > 0:07:18commitments to the EU is needed to unlock trade talks.
0:07:18 > 0:07:21A deadline set by Zimbabwe's ruling party for President Robert Mugabe
0:07:21 > 0:07:26to resign or face impeachment is just hours away.
0:07:26 > 0:07:28Mr Mugabe gave an extraordinary television address in which he was
0:07:28 > 0:07:32expected to give details of how he would stand down.
0:07:32 > 0:07:35But instead, the 93-year-old said he would lead next month's congress
0:07:35 > 0:07:42of the ruling Zanu-PF party.
0:07:42 > 0:07:45Chinese online giant Alibaba has taken a $2.9 billion stake in one
0:07:45 > 0:07:52of China's largest bricks-and-mortar grocery retailers.
0:07:53 > 0:08:01Leisha Santorelli is in Singapore.
0:08:01 > 0:08:07What has the reaction been to this? This has been an interesting deal,
0:08:07 > 0:08:13because more and more people are shopping online. And by Alibaba
0:08:13 > 0:08:17putting so much money into another company, it shows that there is
0:08:17 > 0:08:20future for bricks and mortar stores. So it is generating discussion in
0:08:20 > 0:08:26the business community. The company competes with Walmart. It operates
0:08:26 > 0:08:30hundreds of markets selling everything under the sun. Alibaba
0:08:30 > 0:08:34has been expanding into the fiscal retail world, so this isn't new, but
0:08:34 > 0:08:37it shows that they are looking to go to great online and off-line selling
0:08:37 > 0:08:43and shopping. So in recent years, they have bought into the grocery
0:08:43 > 0:08:46firms and shopping malls. It looks like the strategy has been emulated
0:08:46 > 0:08:52by Amazon as well. They bought whole foods for $14 billion. It is part of
0:08:52 > 0:08:56a strategy where they will acquire hundreds of grocery stores which can
0:08:56 > 0:09:00also service small warehouses to help with last mile delivery
0:09:00 > 0:09:05operations. So it says the six e-commerce companies the expensive
0:09:05 > 0:09:07task of building their own infrastructure in different
0:09:07 > 0:09:14locations and neighbourhoods. Alibaba and Amazon are looking to
0:09:14 > 0:09:30transform how we tail is done at the moment.Thank you.
0:09:36 > 0:09:41There are worries about tax reform in the United States now worries
0:09:41 > 0:09:45about the breakdown of talks in Germany. Let's see how the European
0:09:45 > 0:09:55markets have opened.
0:09:56 > 0:10:01Samira Hussain has the details about what's ahead on Wall Street Today.
0:10:02 > 0:10:06It will be a shortened week this week as the country prepares for the
0:10:06 > 0:10:10Thanksgiving holiday, which falls on Thursday. There will still be some
0:10:10 > 0:10:14business news worth paying attention to. The US Federal Reserve,
0:10:14 > 0:10:19America's central bank, will release the minutes from its October policy
0:10:19 > 0:10:22meeting on Wednesday. The policymakers kept interest rates
0:10:22 > 0:10:26unchanged during the meeting and pointed to strong economic growth
0:10:26 > 0:10:29and the strengthening labour market. Earnings will also continue this
0:10:29 > 0:10:34week. We were here from a company which has been benefiting from
0:10:34 > 0:10:40higher international demand for it construction and farming equipment.
0:10:40 > 0:10:44And one home improvement retailer will have got a boost in demand for
0:10:44 > 0:10:48emergency supplies like generators and building materials because of
0:10:48 > 0:10:54the hurricanes that hit the US.That was some era in New York, outlining
0:10:54 > 0:11:00the day in Wall Street. It is also a busy day in Europe.
0:11:00 > 0:11:04The fate of two major European agencies will be decided later.
0:11:04 > 0:11:06The European Medicines Agency and European Banking Authority
0:11:06 > 0:11:09currently reside in London - which will no longer be part of
0:11:09 > 0:11:19the EU from the end of March 2019.
0:11:19 > 0:11:22The 27 member states will vote later on which cities
0:11:22 > 0:11:23will become their new homes.
0:11:23 > 0:11:25Joe Lynam has more.
0:11:25 > 0:11:27This is Canary Wharf in London's East End.
0:11:27 > 0:11:31It's home to some of the biggest banks in the world, but also to two
0:11:31 > 0:11:35very important EU agencies, the European Banking Authority
0:11:35 > 0:11:39in the big tower, with almost 200 staff, is here.
0:11:39 > 0:11:41But also here, with almost 900 staff, is
0:11:41 > 0:11:43the European Medicines Agency.
0:11:43 > 0:11:48Thanks to Brexit, they are both moving out.
0:11:48 > 0:11:57Today, they will find out where they are moving to.
0:11:57 > 0:11:59And two dozen European cities have been scrambling to host these
0:11:59 > 0:12:00prestigious agencies.
0:12:00 > 0:12:03That's because their staff are very well paid and wherever they go,
0:12:03 > 0:12:05they bring thousands more jobs as companies want to be
0:12:05 > 0:12:08near their regulators, be they banks or pharmaceutical giants.
0:12:08 > 0:12:1119 European cities have bid to host the European Medicines Agency,
0:12:11 > 0:12:16which decides on whether drugs can be sold in the EU.
0:12:16 > 0:12:19Eight cities have bid to host the European Banking Authority,
0:12:19 > 0:12:23which monitors the health of the EU's biggest banks.
0:12:23 > 0:12:26From unlimited access to the zoo, free moving costs and rent paid,
0:12:26 > 0:12:31many cities have major incentives to host the two agencies.
0:12:32 > 0:12:34many cities have offered major incentives to host the two agencies.
0:12:34 > 0:12:36But politics may trump all that.
0:12:36 > 0:12:38The UK will lose 1,100 good jobs of regulators who spend
0:12:38 > 0:12:41money in the capital, but there is more to it than that.
0:12:41 > 0:12:44Having a regulator creates a halo effect, because lots of American
0:12:44 > 0:12:46and Japanese businesses set up shop in London precisely
0:12:46 > 0:12:49because they want their staff to be closer to the regulator
0:12:49 > 0:12:51so that they can help shape its decisions, get
0:12:51 > 0:12:54their products under their noses.
0:12:54 > 0:12:57So lots of companies have said once the regulator moves,
0:12:57 > 0:12:59they will have to think about sending staff to follow it.
0:12:59 > 0:13:02Irrespective of which European cities win today, this
0:13:02 > 0:13:04will be the first tangible manifestation of Brexit.
0:13:04 > 0:13:11It may not be the last.
0:13:11 > 0:13:12Still to come...
0:13:12 > 0:13:15Turning trash into treasure - we'll hear from a company that
0:13:15 > 0:13:22recycles unwanted bits of hose, leather, and other materials.
0:13:22 > 0:13:32You're with Business Live from BBC News.
0:13:34 > 0:13:36Christmas spending is expected to fall this year for the first
0:13:36 > 0:13:40time in half a decade.
0:13:40 > 0:13:42According to figures out today from Visa,
0:13:42 > 0:13:45consumers are set to make the most of Black Friday promotions -
0:13:45 > 0:13:51but spending for the whole of the festive season
0:13:51 > 0:13:52is expected to fall.
0:13:52 > 0:13:54Steph McGovern has been at a Co-Op distribution centre
0:13:54 > 0:13:58near Newcastle this morning...
0:13:58 > 0:14:02Good morning from this co-op distribution centre, where you can
0:14:02 > 0:14:06see one of the tracks which has arrived, bringing lots of products.
0:14:06 > 0:14:11They have something like 3500 different product lines here. They
0:14:11 > 0:14:16are being zipped off to various shops in the area. There are about
0:14:16 > 0:14:19260 shops in the north of England at the Co-op is sending this stuff too.
0:14:19 > 0:14:26We are here because we are talking about what is happening in retail.
0:14:26 > 0:14:29It is literally the busiest time of year for them. In the run-up to the
0:14:29 > 0:14:32festive period, they will be thinking about how to prepare. There
0:14:32 > 0:14:36is research out from visa which suggests that we will be spending
0:14:36 > 0:14:41less this year than we have in previous years because of the cost
0:14:41 > 0:14:46of everything going up and wages not keeping up. So while we have seen
0:14:46 > 0:14:50inflation rise and wages not rising as much, it means that in real
0:14:50 > 0:14:54terms, it is putting a lot of pressure on the people spending in
0:14:54 > 0:14:59the shops. We don't have as much money as we did in the past. In
0:14:59 > 0:15:03terms of where that pressure is going to fall, analysts suggest that
0:15:03 > 0:15:07it will be travel. Clothing as well, and also your big-ticket household
0:15:07 > 0:15:13goods. For food, things look like they will be fairly flat. People
0:15:13 > 0:15:18love spending money on food at Christmas. Also in terms of where
0:15:18 > 0:15:22the money is going and how we are spending it, whether it is in the
0:15:22 > 0:15:26shops or online, just over a third of what we are spending Christmas
0:15:26 > 0:15:32will be spent online, according to the analysts at Visa. Sorry busy
0:15:32 > 0:15:44time still for the retailers, but things could be tough for them.
0:15:44 > 0:15:45Let's show things could be tough for them.
0:15:45 > 0:15:45Let's show you things could be tough for them.
0:15:45 > 0:15:45Let's show you one things could be tough for them.
0:15:45 > 0:15:46Let's show you one of things could be tough for them.
0:15:46 > 0:15:46Let's show you one of the things could be tough for them.
0:15:46 > 0:15:47Let's show you one of the story things could be tough for them.
0:15:47 > 0:15:49Let's show you one of the story which I assume affects many of you
0:15:49 > 0:15:54if you are British Gas customers. Its owners are saying it is going to
0:15:54 > 0:15:58withdraw the standard variable tariff or SVT which is that's for
0:15:58 > 0:16:03new customers by the way which is one of the tariffs that we have to
0:16:03 > 0:16:07try and get our heads around early time we look to swap energy
0:16:07 > 0:16:16providers. Read more on the Business Live page.
0:16:16 > 0:16:18You're watching Business Live - our top story:
0:16:18 > 0:16:19The German Chancellor, Angela Merkel,
0:16:19 > 0:16:21will hold talks later with President Frank-Walter Steinmeier,
0:16:21 > 0:16:24after the collapse of coalition talks over the weekend
0:16:24 > 0:16:28after the centrist Free Democrats pulled out of negotiations.
0:16:32 > 0:16:37No deal at the moment.
0:16:37 > 0:16:39Now let's get the inside track on one luxury accessories
0:16:39 > 0:16:43firm with a difference.
0:16:43 > 0:16:48Elvis and Kresse is a UK start-up which is using reclaimed materials
0:16:48 > 0:16:50to create things like handbags, wallets and belts.
0:16:50 > 0:16:54The company uses everything from old firehoses
0:16:54 > 0:16:59to used coffee sacks and parachute silks to make its products.
0:16:59 > 0:17:01The firm's founder, Kresse Wessling, says she wants
0:17:01 > 0:17:10to add value to waste and build a valuable product from it.
0:17:10 > 0:17:15Kresse is with us. Welcome to Business Live. She was smiling when
0:17:15 > 0:17:19we were reading the introduction as they always do. I always feel
0:17:19 > 0:17:22nervous when I have got the founder next to me and reading the
0:17:22 > 0:17:27introduction. Tell us about how and why you started this company?I
0:17:27 > 0:17:34moved to the UK in 2004. I have had a love relationship with waste and I
0:17:34 > 0:17:39wanted to solve a problem. I went to quite a few landfill sites and I had
0:17:39 > 0:17:43a chance meeting with the Fire Brigade and I fell in love with
0:17:43 > 0:17:51their old hoses.You fell in love with an old hose? Let's not go
0:17:51 > 0:17:58there. Let's show the viewers what you make out of the hoses. This is
0:17:58 > 0:18:01amazing psmts beautiful, beautiful handbag which we can see here. This
0:18:01 > 0:18:08will cost you around £200 in the UK. Yes.Where can you buy it?At Elvis
0:18:08 > 0:18:12and Kresse.com and select boutiques across the UK and Europe and through
0:18:12 > 0:18:16various online retail partners over the world.And this is made out of
0:18:16 > 0:18:21fire hoses and it is specific in the sense in that it is ten centimetre
0:18:21 > 0:18:25wide strips. How much of the hose is left behind?We leave behind very
0:18:25 > 0:18:34little hose. We started collecting hoses since 2005 and none of London
0:18:34 > 0:18:39Fire Brigade's hoses have gone to landfill. 50% of the profits from
0:18:39 > 0:18:43the range goes to the firefighters charity.What about chemicals for
0:18:43 > 0:18:50cleaning it. One of the things about rubbish waste it is dirty.You can
0:18:50 > 0:18:54imagine a fire hose cleaning machine didn't exist. We use a machine that
0:18:54 > 0:19:00uses only water and we treat our own waste water.What about the hose
0:19:00 > 0:19:04that have been in chemical fires and stuff. Hoses are nasty things. They
0:19:04 > 0:19:11go to nasty places?Contaminated hoses are always segregated before
0:19:11 > 0:19:18we use. We have 15 raw materials. The lining is an auction banner. We
0:19:18 > 0:19:21use parachute silk and we have started collecting a significant
0:19:21 > 0:19:24amount of leather waste which is a problem on an entirely different
0:19:24 > 0:19:32scale to fire hose waste. And I guess we're going to continue to
0:19:32 > 0:19:36collect these niche wastes that have no hope. We collect the materials
0:19:36 > 0:19:41that would otherwise go to landfill or incineration.To what extent are
0:19:41 > 0:19:44you making an impact? I'm sure many watching will think it is fantastic
0:19:44 > 0:19:49what you are doing, but it's such a huge, huge issue the issue of waste
0:19:49 > 0:19:53and you're saying you want to solve this issue. Is that realistic?I
0:19:53 > 0:19:57think every business, if they chose a problem to solve, and then
0:19:57 > 0:20:00successfully did it, we would have a better world. The point is trying to
0:20:00 > 0:20:08make the entire world better and for us our niche fire hose problem we
0:20:08 > 0:20:11were able to solve while making donations to the firefighters
0:20:11 > 0:20:19charity. We are tackling a much larger leather waste issue, but we
0:20:19 > 0:20:25are doing that in conjunction with Burberry.Would you have a bigger
0:20:25 > 0:20:30impact if you went to the othernd of the market. You are making goods
0:20:30 > 0:20:35that those who could make good choices can afford to make, but
0:20:35 > 0:20:39those who buy at the lower end in terms of their retail spend don't
0:20:39 > 0:20:42have so much of a choice and it might be better if we impact those
0:20:42 > 0:20:47more?The second most polluting industry in the world is the fashion
0:20:47 > 0:20:52industry. I think that we have to change it from all angles and for us
0:20:52 > 0:20:57we manufacturer the products ourselves. We have two sites. We are
0:20:57 > 0:21:01a Living Wage employer. And I think what we are trying to do is set an
0:21:01 > 0:21:05example of how this can be done in a sustainable wonderful, positive way.
0:21:05 > 0:21:10What's your ambition?I would really like to see the world be much
0:21:10 > 0:21:18better.For your company?We only ever want to scale to solve the
0:21:18 > 0:21:23problems we've tackled. The leather waste problem is 80,000 times larger
0:21:23 > 0:21:27than the fire hose problem. So I suppose my ambition is to be in some
0:21:27 > 0:21:31way, whether it through partnership or by other means, 80,000 times
0:21:31 > 0:21:36larger than I am now.We will watch with great interest. Thank you for
0:21:36 > 0:21:40coming and bringing that gorgeous bag and telling us more about your
0:21:40 > 0:21:48company. I'm going to remove that. It is Kresse's.
0:21:48 > 0:21:51In a moment we'll take a look through the Business Pages but first
0:21:51 > 0:21:54here's a quick reminder of how to get in touch with us.
0:21:54 > 0:21:56The Business Live page is where you can stay
0:21:56 > 0:21:58ahead of all the day's breaking business news.
0:21:58 > 0:22:00We'll keep you up-to-date with all the latest details
0:22:00 > 0:22:02with insight and analysis from the BBC's team of editors
0:22:03 > 0:22:04right around the world.
0:22:04 > 0:22:10And we want to hear from you, too.
0:22:10 > 0:22:14Get involved on the BBC business live web page, bbc.com/business
0:22:14 > 0:22:16On Twitter, @BBCBusiness and you can find us on Facebook
0:22:16 > 0:22:17at BBC Business News.
0:22:17 > 0:22:25Business Live on TV and online, whenever you need to know.
0:22:29 > 0:22:38So we asked would you upcycle fancy stuff? Steve says, "Is it not' waste
0:22:38 > 0:22:43of time or money?"It is not a waste of time.Look at the current hot
0:22:43 > 0:22:47topic of plastics in the ocean, recycling or recovery of the energy
0:22:47 > 0:22:51from these plastics helps to prevent the contamination in the first
0:22:51 > 0:22:58place.Nicholas Boot says, "It has to be done, digging up the planet
0:22:58 > 0:23:05and burying it again is not a way for longevity for our species."We
0:23:05 > 0:23:09do our best to recycle and reduce waste, but producers must stop
0:23:09 > 0:23:13producing so much in the first place. Thank you for your views.
0:23:13 > 0:23:21Let's move on to the newspapers. Simon is here.
0:23:21 > 0:23:25A turning point in the Brexit talks. According to the FT they will be
0:23:25 > 0:23:30talking about coughing up more money in their divorce bill and they think
0:23:30 > 0:23:33they have got the Cabinet behind them and how much, 40 billion is it,
0:23:33 > 0:23:40maybe more?So you remember that the initial estimates from the EU side
0:23:40 > 0:23:44and Independent folks was around about 60 billion. We came in with 20
0:23:44 > 0:23:48billion. So, I guess it is not surprising that in the paper we are
0:23:48 > 0:23:52reporting about something that could go up to 40 billion. And that the
0:23:52 > 0:23:55Cabinet is behind Theresa May on this. The key issue, of course, is
0:23:55 > 0:23:59going to be what strings are attached to that particular deal. Of
0:23:59 > 0:24:03course, that's really going to be about what happens with the trade
0:24:03 > 0:24:06negotiations that take place afterwards. Important bit this, we
0:24:06 > 0:24:11need to get through not just the divorce bill, but there is the
0:24:11 > 0:24:15Northern Ireland story and the citizens rights before we can go
0:24:15 > 0:24:19to...The Northern Ireland story will be pushed into the trade
0:24:19 > 0:24:23negotiations because it is the way that border works in terms of being
0:24:23 > 0:24:26an open border or a closed border, whatever it is, that's very much
0:24:26 > 0:24:30linked to how the trade works between the two sides?I think it
0:24:30 > 0:24:34has to because if we don't then there is a risk that we are going to
0:24:34 > 0:24:38start getting to a point where we haven't been able to finish the
0:24:38 > 0:24:41divorce bill before getting on to trade and we are not going to have
0:24:41 > 0:24:45enough time for companies to make their second choices before Brexit.
0:24:45 > 0:24:50Just before we go on to talk about the next one. It will be a
0:24:50 > 0:24:55humiliating climb-down for some of the Brexit or Brexiteer, don't you
0:24:55 > 0:25:00think? Boris Johnson was saying they are going to have to whistle for the
0:25:00 > 0:25:09money?Yes, it is, but I think most people accepted there would be money
0:25:09 > 0:25:14and 40 sounds like it.Monaco builds into the method to house new throng
0:25:14 > 0:25:19of super rich. Interesting story following on from the Paradise
0:25:19 > 0:25:23Papers, isn't it?They are talking about building enough space for 220
0:25:23 > 0:25:29extra apartments. The average cost of for, what you get for $1 million
0:25:29 > 0:25:33in Monaco is 17 square meters. That's one-third of what you get in
0:25:33 > 0:25:40Paris. It is more extensive than in the centre of London.That's about
0:25:40 > 0:25:47the size of a studio.Basically somewhere to put your bed and your
0:25:47 > 0:25:52million.And your very small dog! And little bit extra to swing a cat
0:25:52 > 0:26:01in. You can tell none of tus live there -- us live there. That's it
0:26:01 > 0:26:04from us today.
0:26:04 > 0:26:07There will be more business news throughout the day on the BBC Live