:00:00. > :00:00.Those are the latest headlines from BBC World News.
:00:00. > :00:07.Now for the latest financial news with Aaron
:00:08. > :00:21.One of Europe's biggest airlines in a Brexit bother.
:00:22. > :00:23.We're taking a look at how easyJet's business model,
:00:24. > :00:25.based on the freedom of movement across Europe,
:00:26. > :00:30.may be in trouble once Britain is out of the EU.
:00:31. > :00:33.And from Brexit loser to potential Brexit winner -
:00:34. > :00:35.how India's multi-billion dollar clothing industry is hoping
:00:36. > :00:51.for a better trade deal with the UK after it leaves the EU.
:00:52. > :01:02.This is a bite-size snapshot of the latest in the world of business and
:01:03. > :01:03.money. As the dust settles
:01:04. > :01:05.following the UK's decision to leave the European Union, businesses
:01:06. > :01:08.are taking stock over the impact the decision may or may not have
:01:09. > :01:11.on their daily operations. One company whose core
:01:12. > :01:13.business is based on freedom of movement across Europe is the low
:01:14. > :01:17.cost airline easyJet, which is reportedly already in talks
:01:18. > :01:21.with aviation regulators from EU member states about acquiring an air
:01:22. > :01:26.operator's certificate in a European country so it can carry
:01:27. > :01:34.on with business as usual. I will explain all of that in a
:01:35. > :01:36.moment. EasyJet says it has "no plans"
:01:37. > :01:38.to move its headquarters from Luton, but will need
:01:39. > :01:44.to consider its options. I'm joined by Alan Bowen,
:01:45. > :01:54.Managing Partner at AGB Associates. Great to have you with us. Good
:01:55. > :02:00.morning. Can we bring the map up? Where is it? Obviously it was not
:02:01. > :02:07.going to work. Hang on. There we go. This is the problem. You explain
:02:08. > :02:12.this to me. EasyJet is in EU airline and it can fly point-to-point
:02:13. > :02:21.anywhere within the EU. Absolutely. If the UK leaves the EU, easyJet
:02:22. > :02:26.comes a UK alone. Any EU airline to fly between any two points. Once we
:02:27. > :02:28.cease to be in the EU, I write terminates, and we would have to
:02:29. > :02:35.negotiate with each individual country on a bilateral agreement
:02:36. > :02:39.which will be slow and difficult. EasyJet's model is based on the
:02:40. > :02:45.freedom of movement. It has headquarters in a lot of these
:02:46. > :02:49.countries. Yes. It has bases in 11 countries, and owns an airline in
:02:50. > :02:54.Switzerland already, which bought some time ago. There is easyJet
:02:55. > :02:59.Switzerland. But that will not help in the future. It is looking at
:03:00. > :03:04.setting up a domicile in another country to enable it to get a new
:03:05. > :03:08.licence. It has bought a Swiss airline, but could buy an airline in
:03:09. > :03:12.one of these EU countries, and that could give it the same access? It
:03:13. > :03:16.could, it doesn't want to do that at the moment. The market is very
:03:17. > :03:21.tight. Ryanair is its biggest competitor and is an EU airline
:03:22. > :03:29.because it is based in the Republic of Ireland. Norwegian airlines is
:03:30. > :03:35.number three. They have an agreement occurs they allow freedom of
:03:36. > :03:43.movement, so even though it is not an EU country, it gets the benefits.
:03:44. > :03:46.If we broaden this out further globally, you has an open skies
:03:47. > :03:49.agreement with the United States. That allows pretty much every
:03:50. > :03:56.airline from either side to go anywhere. If the UK leaves the EU,
:03:57. > :03:58.then what? Unless we reach a new agreement and the Americans already
:03:59. > :04:02.said we are going to be at the back of the queue for new agreements, we
:04:03. > :04:08.go back to the original agreement, open skies, which was called Bermuda
:04:09. > :04:13.two, and that allowed two airlines from the US and to from the UK to
:04:14. > :04:19.fight transatlantic -- two from the UK. If you limit that to two
:04:20. > :04:25.airlines, rises will go to the roof. Absolutely. Prices are much lower
:04:26. > :04:32.than they were 25 years ago, and we could potentially go back to where
:04:33. > :04:35.we were before. So there is British Airways and virgin, but then you
:04:36. > :04:41.have all of the minor airlines which I UK based. Yes, and there are more
:04:42. > :04:44.than two US airlines flying transatlantic as well, and it is
:04:45. > :04:47.where many make their money. There is no benefit for the airlines, and
:04:48. > :04:58.no benefit for the consumer. We appreciate it. We may see you live
:04:59. > :05:00.next week at the airshow. Shares in Tokyo have seen
:05:01. > :05:03.a bad day so far today. The Nikkei ended the morning
:05:04. > :05:07.session down close to 3%. Investors are moving out
:05:08. > :05:09.of stocks and into currency, with the yen continuing to gain
:05:10. > :05:26.as it's seen as a safe haven. The more people by the yen, that
:05:27. > :05:31.which is its value up and makes it much more expensive for the Japanese
:05:32. > :05:34.exporters, and for us to buy them, so we buy less. That is not good.
:05:35. > :05:36.And, Sharanjit, apparently this is because of Brexit -
:05:37. > :05:45.That is not good at all, and the Japanese exporters are not liking
:05:46. > :05:51.it. But I should say that the yen, seen as a safe haven, is rising
:05:52. > :05:56.significantly against the pound. The pound earlier hit a 31 year ago
:05:57. > :06:02.against the US dollar. Markets are still remaining very edgy in the
:06:03. > :06:07.wake of the Brexit folk, and the yen is something of a safe haven, and it
:06:08. > :06:13.is now driving down Japanese stocks, which are explained pretty well.
:06:14. > :06:19.Brexit is having a lot of impact in Asia. A lot of nervousness overnight
:06:20. > :06:24.on Wall Street. There are about 1000 Japanese firms that operate in the
:06:25. > :06:32.UK, many of which could say a huge impact on its operations due to
:06:33. > :06:35.Brexit. They see the UK as a portly Dylan with Europe, and the outlook
:06:36. > :06:43.for Stelling does not appear incredibly bright -- port for
:06:44. > :06:47.dealing with Europe. Bloomberg are projecting that the pound will fall
:06:48. > :06:54.to new parity to the US dollar by the end of September, $1.16. That is
:06:55. > :07:00.a real shock for many. Thank you. That is a nice and Rosie theme to
:07:01. > :07:07.leave us on. No holidays left for us! Thank you. We will speak to you
:07:08. > :07:10.soon. But good news to UK exporters. Let's talk about another story. We
:07:11. > :07:13.can't get away from Brexit. Take India's textile exports
:07:14. > :07:15.to the UK as an example. They're worth around $2 billion
:07:16. > :07:19.a year, and the UK is the most important market in Europe
:07:20. > :07:21.for garment traders in India. Their business is already hurt
:07:22. > :07:24.by the fall in the pound, as Yogita Limaye
:07:25. > :07:38.reports from Mumbai. Made in India to be sold overseas.
:07:39. > :07:43.All of the clothes manufactured at this factory in Mumbai are for
:07:44. > :07:47.export. The company produces 1.8 million garments every month. And
:07:48. > :07:56.60% of its business comes from the UK. So with a value of the pound
:07:57. > :08:01.falling sharply after Brexit, its earnings are being hit. If I don't
:08:02. > :08:06.get a proper pricing, we will be looking for a different market. I
:08:07. > :08:09.can go to other countries like USA or other European markets or a
:08:10. > :08:16.study, and we can get the business. I can't take immediate steps or
:08:17. > :08:23.strategies, but in the long-term, yes, if I don't get support, I will
:08:24. > :08:28.definitely save it. More than a third of India's textile exports go
:08:29. > :08:34.to the European Union, and the UK is the biggest buyer. Traders here have
:08:35. > :08:41.heard it been finding Europe a tough market to sell. A T-shirt made here,
:08:42. > :08:45.when a retailer buys it, they have to pay import tax. If a similar
:08:46. > :08:49.T-shirt is bought from a country like Bangladesh, there is 0% duty.
:08:50. > :08:57.That makes Indian clothes less competitive. Now that the UK has
:08:58. > :09:00.voted to cut itself away from the EU, it is expected to start looking
:09:01. > :09:06.to do more trade with other markets. And the Indian government is
:09:07. > :09:10.demanding a better deal. The benefits which were given to
:09:11. > :09:18.Bangladesh and a few other countries were not extended to India. As a
:09:19. > :09:23.result of that, not just the loss in terms of employment generation, but
:09:24. > :09:29.a sector which had strength, which pioneered, and reached a global
:09:30. > :09:35.market, it was unfairly pushed out of its traditional markets. So that
:09:36. > :09:39.I would think would give us the advantage in a matter of a couple of
:09:40. > :09:48.years to be able to serve the UK and the European Union. Ironing out such
:09:49. > :09:50.an agreement will take time. For now, Indian factories will be
:09:51. > :09:59.looking for answers from their UK partners.
:10:00. > :10:01.Avid Life Media, the owner of infidelity dating website
:10:02. > :10:02.Ashley Madison, is being investigated
:10:03. > :10:06.Last year, hackers stole the personal information of millions
:10:07. > :10:09.of the website's customers, which helps link up married people
:10:10. > :10:21.Mostly married blokes, I believe. That'll teach them!
:10:22. > :10:24.Don't forget you can get in touch with me and some
:10:25. > :10:34.We will be back to look at the newspaper shortly.
:10:35. > :10:36.NHS inspectors from the Care Quality Commission have revealed that
:10:37. > :10:41.a patient lay dead for up to 4.5 hours before