:00:00. > :00:00.Conservative MPs will declare their bids to replace David Cameron
:00:00. > :00:00.as party leader and Prime Minister, while Labour's Jeremy Corbyn is set
:00:00. > :00:07.to be challenged by a former member of his shadow cabinet,
:00:08. > :00:10.Those are the latest headlines from BBC World News.
:00:11. > :00:13.Now for the latest financial news with the World Business Report.
:00:14. > :00:27.Global stocks continue to rally, the FTSE 100 is now higher
:00:28. > :00:28.than before the referendum, as investors bet
:00:29. > :00:32.Plus, goodbye EU, hello EEA, or AA, or WTO?
:00:33. > :00:35.We talk you through the acronyms and look at Britain's options
:00:36. > :00:47.Welcome to World Business Report, I'm Sally Bundock.
:00:48. > :00:49.Also in the programme, we talk to the small business owner
:00:50. > :00:58.who is making the most of the Brexit opportunities.
:00:59. > :01:01.So it seems the initial panic on financial markets has not only
:01:02. > :01:02.calmed down, but turned into optimism.
:01:03. > :01:04.Global stock markets surging again on Wednesday,
:01:05. > :01:07.with investors for now betting that some kind of compromise deal can be
:01:08. > :01:13.done to keep Britain in the single European market.
:01:14. > :01:19.The FTSE 100 index of leading shares closed at this, 6360.06.
:01:20. > :01:30.That is its highest close since April, a bounce back
:01:31. > :01:33.in multinational and commodity companies listed on this index have
:01:34. > :01:42.But it is worth noting the more domestic-reliant FTSE 250 is also
:01:43. > :01:45.powering ahead at a similar pace but is not yet back to where
:01:46. > :01:57.And the relief rally has continued across the globe.
:01:58. > :02:00.This is the scene is Asia at the moment, with the share
:02:01. > :02:02.markets climbing for a third day.
:02:03. > :02:05.The pound is also recovering strongly up against the US dollar
:02:06. > :02:12.This is last night's close on Wall Street,
:02:13. > :02:14.and oil hovering around $50 a barrel again.
:02:15. > :02:31.C U. Still the optimism in Asia today? Absolutely. A good day for
:02:32. > :02:38.Asian equity markets. The rally continues in Japan, Korea, Hong
:02:39. > :02:43.Kong. All well entrenched in positive territory. Japan's stock
:02:44. > :02:49.market is currently higher on hopes that Tokyo will release more
:02:50. > :02:54.stimulus, which is a plus for the stock market. Local media is
:02:55. > :03:00.reporting that Shinzo Abe is being urged to spend almost $200 billion.
:03:01. > :03:05.There is also talk that the bank of Japan will push for another round of
:03:06. > :03:08.easing. This talk has been around the market for quite sometime due to
:03:09. > :03:12.the strength of the Japanese yen. Everyone is hoping that it will
:03:13. > :03:20.materialise sooner rather than later. Of course, there is also some
:03:21. > :03:26.bad news. One Singapore bank is basically suspending its loans
:03:27. > :03:34.programme for London properties in the wake of the Brexit vote. This is
:03:35. > :03:38.Singapore's third largest lender. They said they are being cautious
:03:39. > :03:43.about lending, however, you have Singapore's largest bank continuing
:03:44. > :03:47.to provide financing for property purchases in London. But they have
:03:48. > :03:54.advised customers that they have to be cautious. Thank you so much. Very
:03:55. > :04:00.interesting. There is still optimism, caution, but many
:04:01. > :04:01.businesses are feeling better at the moment.
:04:02. > :04:03.Whether that optimism continues on the markets,
:04:04. > :04:06.and in the wider business world, depends on this question.
:04:07. > :04:08.What kind of trading relationship will Britain have
:04:09. > :04:10.with the European Union following the vote to Leave?
:04:11. > :04:13.The UK has set up a government task force to prepare for negotiations.
:04:14. > :04:20.The first is what is often described as the 'Norway model'.
:04:21. > :04:22.Out of the EU, but belonging to the European
:04:23. > :04:25.It would give Britain almost total tariff-free access
:04:26. > :04:31.It's the option which is most similar to the status quo.
:04:32. > :04:40.As well as paying into the EU budget, and accepting
:04:41. > :04:43.the majority of EU law, European leaders have said it
:04:44. > :04:58.would need to accept free movement of people.
:04:59. > :05:01.This could be a real sticking point, as immigration was a central issue
:05:02. > :05:06.Option two, the UK could try for an association agreement, or AA,
:05:07. > :05:10.But there are big questions over whether this would protect access
:05:11. > :05:15.for London's financial services market.
:05:16. > :05:17.Without either of those, Britain could try to rely
:05:18. > :05:22.But exports to the EU would likely be taxed, for instance US cars sold
:05:23. > :05:24.in the EU have a tariff of 10-per cent.
:05:25. > :05:26.Well, at the end of the EU summit yesterday,
:05:27. > :05:29.European Council President Donald Tusk insisted that Britain will have
:05:30. > :05:35.to accept Europe's terms if it wants access to the single market.
:05:36. > :05:37.Leaders are absolutely determined to remain
:05:38. > :05:46.united and we are closely together as 27.
:05:47. > :05:49.We reconfirmed that Britain's withdrawal from the European Union
:05:50. > :05:53.must be orderly, and there will be no negotiations of any kind
:05:54. > :05:55.until the UK formally notifies its intentions to withdraw.
:05:56. > :05:57.Leaders made it crystal clear today, access to the single
:05:58. > :05:59.market requires acceptance of all four freedoms,
:06:00. > :06:17.There will be no single market a la carte.
:06:18. > :06:25.Marc Ostwald is a strategist at ADM Investor Services International.
:06:26. > :06:34.Nice to see you. We've tried to simplify things as much as possible,
:06:35. > :06:39.but this is incredibly complicated. At the moment, we don't know who the
:06:40. > :06:44.key negotiator in the UK is. I think there are any number of aspects.
:06:45. > :06:48.Negotiations are likely to be drawn out, likely to be politicised. It is
:06:49. > :06:55.very important who is going to be taking over, particularly with the
:06:56. > :06:59.new head of the Conservative government here. There are four key
:07:00. > :07:06.areas. Financial services, which makes all the other models
:07:07. > :07:13.noncomparable. Very important, Britain needs that. The financial
:07:14. > :07:18.services sector needs that access. The question is, what price will
:07:19. > :07:23.they pay for it and will add compromised anything that the Leave
:07:24. > :07:30.campaign campaigned on? The other areas to look at the auto which has
:07:31. > :07:37.lot of makers who export cars from the UK to Europe. That is important.
:07:38. > :07:44.Defence, we... It shouldn't be too contentious, because Britain is
:07:45. > :07:49.still a part of Nato. At that and the pharmaceuticals industry. Those
:07:50. > :07:53.are the most important areas. The overall services sector will also be
:07:54. > :07:57.important in terms of burgeoning technology, which has been given a
:07:58. > :08:01.boost but is extraordinarily mobile. I think we'll need to remember that
:08:02. > :08:08.if the wrong sort of agreement is made, it can basically relocate in a
:08:09. > :08:16.matter of days because of the nature of the thing. How optimistic argue
:08:17. > :08:20.that we will get a good outcome? Negotiations cannot officially get
:08:21. > :08:24.under way in till we hit the Article 50 Button, as it were, which won't
:08:25. > :08:28.happen until we have a new Prime Minister. Then we have a two year
:08:29. > :08:31.period to figure it out. Are you optimistic we will come out with a
:08:32. > :08:37.better option in the UK than we had before? I doubt it. I think we will
:08:38. > :08:45.come out with something similar, and then the problem will be, what are
:08:46. > :08:49.the social ramifications, sociopolitical ramifications here in
:08:50. > :09:01.the UK? If the public here feels like it has been cute as to what
:09:02. > :09:06.would happen after the Leave, they renege on their promises, then it
:09:07. > :09:15.will go beyond just the relationship in trade terms. As he said, it will
:09:16. > :09:17.take a long time and be complicated, we will do our best to inform you on
:09:18. > :09:26.the journey. In other news: Confidence among
:09:27. > :09:28.British consumers fell sharply in the days after the country
:09:29. > :09:31.decided to Leave the European Union, The index measures people's economic
:09:32. > :09:35.sentiment on a daily basis. It has slumped to its lowest level
:09:36. > :09:38.since May 2013, when Britain's economy was just starting to emerge
:09:39. > :09:40.from its post-financial The US operations of Deutsche Bank
:09:41. > :09:45.and Santander have again failed annual stress tests by the US
:09:46. > :09:46.Federal Reserve. The tests are designed to see how
:09:47. > :09:50.banks would survive a severe financial crisis and economic
:09:51. > :09:52.downturn, and were launched in the wake of the 2008 financial
:09:53. > :09:55.crisis. The Fed said "broad and substantial
:09:56. > :09:57.weaknesses" persisted Both banks had also
:09:58. > :10:01.failed last year. While all 31 large US
:10:02. > :10:03.banks passed the test, Morgan Stanley only got conditional
:10:04. > :10:06.approval and has to submit a new capital plan by
:10:07. > :10:13.the end of the year. The US Senate has approved a relief
:10:14. > :10:16.plan to help Puerto Rico tackle its $70 billion debt,
:10:17. > :10:19.ahead of a potential default on Friday when $1.9 billion worth
:10:20. > :10:24.of payments are due. The US territory has been suffering
:10:25. > :10:26.a decade-long recession that has seen thousands flee
:10:27. > :10:28.for the US mainland. Businesses have closed,
:10:29. > :10:30.schools have struggled with electricity shortages and
:10:31. > :10:32.hospitals are short of medication. In recent months, a Zika virus
:10:33. > :10:47.outbreak has hit Puerto Rico's That's World Business Report, stay
:10:48. > :10:50.with us for the papers in just a moment.
:10:51. > :10:59.Young patients were put at risk of harm, and parents were let down,
:11:00. > :11:01.at a specialist children's heart unit, according to an independent
:11:02. > :11:04.review into services at Bristol Royal Hospital