:00:00. > :00:00.possible relationship with the EU once it is outside -- David Cameron.
:00:00. > :00:00.Those are the latest headlines. Now on BBC News, it's time
:00:00. > :00:23.for World Business Report. With David Cameron now out of the
:00:24. > :00:28.picture, what direction will be European Union take? The remaining
:00:29. > :00:32.EU leaders continue their discussions after Britain's vote to
:00:33. > :00:36.leave. And another embarrassing recall for Toyota in the US. This
:00:37. > :00:44.time it possible airbag inflated defect. Nearly half the money in
:00:45. > :00:49.vehicles are affected. -- half a million. Hello and welcome to World
:00:50. > :00:51.Business Report. Also in the programme, the former chief
:00:52. > :00:58.economist of the European Central bank tells us what he fears about
:00:59. > :01:02.the EU, that it could fracture. But first, let's talk about what
:01:03. > :01:07.happened in Brussels. Left out in the cold, European leaders meeting
:01:08. > :01:10.again in Brussels today but without written's Prime Minister, David
:01:11. > :01:14.Cameron. The leaders of the 27 in the States will have informal
:01:15. > :01:18.discussions over the indications of the vote to leave the EU. Last night
:01:19. > :01:22.was to Cameron gave what was probably his last as conference in
:01:23. > :01:27.Brussels and outlined some of the challenges ahead. The European Union
:01:28. > :01:32.sees the single market as a single market of goods and services and
:01:33. > :01:40.capital and people, and these things great together, and indeed the
:01:41. > :01:46.European Union sees that the structural funds made to the EU
:01:47. > :01:52.after the single market. Sometimes we see these as separate options.
:01:53. > :01:55.The sense that is that all of these go together, and if you want the
:01:56. > :01:59.full benefits of the single market, you need to be involved in every
:02:00. > :02:02.part of it. That will obviously be a huge challenge to try to get that
:02:03. > :02:06.right for the future. A challenge for Europe and for Britain.
:02:07. > :02:11.Meanwhile, Angela Merkel said there would be no negotiations based on
:02:12. > :02:16.cherry picking what best suits the UK. Yesterday we spoke about how
:02:17. > :02:21.Germany could shape a future trade deal giving the UK is their biggest
:02:22. > :02:25.export market. What about France? It would also be a key player in
:02:26. > :02:31.negotiations and compared with Germany has a lot less to lose when
:02:32. > :02:33.it comes to trade. Exported $35 billion worth of goods to the UK
:02:34. > :02:45.last year. That is less than Germany. Britain's vote has also
:02:46. > :02:47.emboldened the far right parties, including the National Front, which
:02:48. > :02:53.are demanding their own European referendum. Brenda Penn said a UK
:02:54. > :02:59.vote was a victory for democracy. -- Marine Le Pen. It is often seen as a
:03:00. > :03:02.advocate for protectionist measures such as for its agricultural policy
:03:03. > :03:08.which provides billions of dollars to farmers in subsidies. Let's speak
:03:09. > :03:12.to the vice president of the Centre for Young Business Leaders. Good
:03:13. > :03:16.morning and welcome to World Business Report. For France,
:03:17. > :03:21.Francois Hollande is a key player in the Brexit negotiations. What is
:03:22. > :03:34.France looking for and hoping for as this divorce recess gets under way?
:03:35. > :03:42.-- process. Last Friday, when I woke up, I was so surprised, and for
:03:43. > :03:51.French entrepreneurs, especially small business, it was really
:03:52. > :04:01.difficult to understand what kind of decision. Afterwards, when we saw
:04:02. > :04:09.who was voting, and young people mostly voted to remain, and all
:04:10. > :04:21.people voted to leave, we understood that it was like sustainable
:04:22. > :04:34.development. This decision is a short-term decision, and for the
:04:35. > :04:41.future, we think it is a really bad news. What does it mean for France
:04:42. > :04:43.going forward? You have a general election next year and the French
:04:44. > :04:47.economy is going through a tough time. We have been following the
:04:48. > :04:52.protests as Francois Hollande tries to get through difficult labour
:04:53. > :04:55.reforms. Many say Brexit strengthens the hand of Marine Le Pen as you go
:04:56. > :05:07.to that election next year. What do you think this means for France?
:05:08. > :05:11.This decision? That means, first, there are a lot of French
:05:12. > :05:21.politicians, leaders, who think it would be a good being to do a
:05:22. > :05:29.Frexit, not only Marine Le Pen, and what happened is going to
:05:30. > :05:38.concentrate all of the debate on it do we have to stay in Europe or not?
:05:39. > :05:50.But this is one of the main subjects which will impact the next election,
:05:51. > :05:58.but if you look at, I heard this morning, only 30 people in France
:05:59. > :06:02.hope to leave Europe, so I am not afraid about that. But it is a good
:06:03. > :06:10.opportunity for French politicians who want to leave Europe to talk
:06:11. > :06:16.about that, and do a referendum, but we are not obliged to. Thank you for
:06:17. > :06:21.your time this morning. Of course it is a discussion that will continue
:06:22. > :06:26.for some time. Oh, dear. Apologies. We have to move on. The UK's vote to
:06:27. > :06:31.leave the EU has been greeted with shock I many influential people in
:06:32. > :06:36.Europe. You could hear to Rome was shocked when he heard Friday morning
:06:37. > :06:39.and that it could lead to the disintegration of the EU itself will
:06:40. > :06:44.stop others have taken it as a signal that calls for far reaching
:06:45. > :06:49.reforms to ensure the survival of the European project. We can speak
:06:50. > :06:55.to the former chief economist of the European Central bank and seen as
:06:56. > :07:01.one of the architects. The European Union and you resign are taken
:07:02. > :07:06.crossroads -- you resign. For the first time, the process of
:07:07. > :07:11.integration which always went forward, more integration, more
:07:12. > :07:18.countries, it is now going in the other direction. One country has
:07:19. > :07:22.decided to leave. This is a total change to what we have seen since
:07:23. > :07:26.the end of the Second World War. Do you think what we could see now is a
:07:27. > :07:31.move towards a 2-stage Europe where Britain becomes like Norway or
:07:32. > :07:34.Iceland or Switzerland, where it has some of the benefits of European
:07:35. > :07:40.Community membership but is not a member of the EU? Yes, I think this
:07:41. > :07:52.idea of a two speed Europe never died, and the UK was always half in
:07:53. > :07:56.and half out in the past. This cream skimming can be attractive. Against
:07:57. > :08:02.this background, I don't understand why the UK has gone the way to
:08:03. > :08:15.exploit this situation to their advantage. It would be more than a
:08:16. > :08:17.nightmare, a catastrophe, if this would be the start of the collapse
:08:18. > :08:22.of European integration. Interesting. Let's have a look at
:08:23. > :08:30.other business stories will stop Toyota is recalling 482,000 hybrid
:08:31. > :08:36.Prius and access cars. They say there is a possible airbag inflated
:08:37. > :08:42.defect -- Lexus. Let's go to Rico Hizon. It is the airbags yet again.
:08:43. > :08:50.What is going on? The problems continue for the main carte
:08:51. > :08:52.malefactors, and this recall covers 2010- 2012 Toyota vehicles with
:08:53. > :08:57.airbag inflated spec would have a small crack could grow over time and
:08:58. > :09:02.read to the airbag inflating. If a passenger is in the car at the time,
:09:03. > :09:09.it increases the risk of injury. Toyota and Lexus dealers will
:09:10. > :09:13.install so-called brackets on the curtain shield airbag inflated at no
:09:14. > :09:16.cost, but tens of millions of cars have really been recalled over 40
:09:17. > :09:21.airbags in recent years. Toyota has not specified the manufacturer in
:09:22. > :09:26.this latest recall but as they are not from Takata. Those airbags have
:09:27. > :09:33.been blamed for a living death in some 150 injuries in the past few
:09:34. > :09:39.years. -- for 11 deaths and some 150 injuries. But a fine has won it
:09:40. > :09:43.could move it take orders from the UK depending on it outcome of the
:09:44. > :09:47.big occasions to leave the EU. They said it was important to retain
:09:48. > :09:52.access to the free movement of people, capital and goods. Vodafone
:09:53. > :09:54.says it is still too early to draw firm conclusions regarding the
:09:55. > :10:02.long-term location of its headquarters. The share markets,
:10:03. > :10:05.relief is continuing. We had a strong close across the board for
:10:06. > :10:11.Wall Street. That is the story in Asia again. How long will it last?
:10:12. > :10:16.That is the question. The NASDAQ up over 2%. The euro is stronger versus
:10:17. > :10:17.the pound. But weakening a bit against the dollar. I will see you
:10:18. > :10:21.soon.