:00:00. > :00:21.EU leaders gather for a summit as they face up to a future
:00:22. > :00:27.without Britain, and the financial fallout.
:00:28. > :00:28.Plus London Fashion Week's power dresser.
:00:29. > :00:32.We meet the designer whose clients include Kate Middleton and Michelle
:00:33. > :00:42.Welcome to World Business Report. Hello.
:00:43. > :00:46.We will also be talking to the boss of Lloyds of London,
:00:47. > :00:49.he's among senior UK financial figures who want to see much more
:00:50. > :00:51.clarity from the Government over Brexit.
:00:52. > :00:57.We start in the Slovakian capital Bratislava where leaders
:00:58. > :01:00.of the European Union member states are about to start
:01:01. > :01:04.Notably absent from the guest list, and the obligatory family photo,
:01:05. > :01:09.And top of the agenda of course, the reason why she is not there.
:01:10. > :01:15.They will be trying to work out how to respond to the biggest crisis
:01:16. > :01:19.Critics have warned that the EU faces disintegration if it does not
:01:20. > :01:22.address the problems that led to the Brexit vote.
:01:23. > :01:25.But in the shorter term there will also be a financial
:01:26. > :01:34.The EU's budget could shrink by at least 10 billion euros a year
:01:35. > :01:36.once Britain leaves, according to the first official calculations.
:01:37. > :01:39.Last year, Britain was the second biggest contributor
:01:40. > :01:44.And it's Germany that may have to pick up much of the bill
:01:45. > :01:48.Brexit could mean Germany ends up funding a quarter of the EU's
:01:49. > :01:50.budget compared to the 21% it contributes today.
:01:51. > :01:52.That's according to calculations made by the German government.
:01:53. > :01:55.It's a figure that will further anger Eurosceptics in Germany.
:01:56. > :01:57.Ahead of today's summit, a stressed looking European Council
:01:58. > :02:01.president Donald Tusk said the EU needs a shake-up if it is to survive
:02:02. > :02:31.Definitely. We haven't come to Bratislava to comfort each other all
:02:32. > :02:34.to deny the real challenges we face. -- or. In this particular moment in
:02:35. > :03:00.the history of our community, after What we need today is an optimistic
:03:01. > :03:06.vision for the future, that I have no doubt. But it requires a
:03:07. > :03:12.realistic diagnosis of the causes of Bradford and its political
:03:13. > :03:15.consequences for all of Europe. -- Brexit.
:03:16. > :03:18.Lorenzo Codogno is a visiting professor at the London School of
:03:19. > :03:20.He was also Chief Economist at the Italian Treasury
:03:21. > :03:31.Welcome to the programme. An informal meeting. A significant and
:03:32. > :03:38.symbolic one. How stormy will it be? There will be a discussion on
:03:39. > :03:43.Brexit, clearly. But this is a discussion on Europe. It will be
:03:44. > :03:48.informal, a brainstorming session. That is key and very important.
:03:49. > :03:57.After Brexit there is clearly need for rethinking the future of Europe
:03:58. > :04:05.and new ideas. I think for Europe the debate will kickstart with the
:04:06. > :04:10.same speech that Juncker gave a few days ago in front of the European
:04:11. > :04:18.Parliament. That is the focus of the days. So that will involve security,
:04:19. > :04:25.military force, and economic security. Those are the three themes
:04:26. > :04:30.delivered a few days ago. I wonder how many of the 27 remaining members
:04:31. > :04:37.of the EU share his vision for the future. They mainly share his
:04:38. > :04:41.vision. I have to say I am suspicious. The same leaders that
:04:42. > :04:44.yesterday were saying we do not need more Europe now seem to be
:04:45. > :04:51.enthusiastic about more cooperation in terms of military and security.
:04:52. > :04:56.So we will see. It is encouraging that at least there are new
:04:57. > :05:09.initiatives because I think as was said by many, especially a few days
:05:10. > :05:12.ago, we need to hand deliverables, concrete actions that can be
:05:13. > :05:17.delivered We have to show people that Europe is delivering. You need
:05:18. > :05:25.vision but also concrete steps. That is exactly it. There seems to be a
:05:26. > :05:38.divergences opening up, even between Myra -- Mario and Juncker.
:05:39. > :05:42.Cooperation on these areas is important. I think this is something
:05:43. > :05:48.that can connect Europe with the people. OK? We should not forget the
:05:49. > :05:53.number of plans and projects that are still open on the side of the
:05:54. > :06:01.economy. Ban Ki-moon has left an unfinished job. We need to finish up
:06:02. > :06:05.what he has already started, as Mario said. That is also a key
:06:06. > :06:12.message. Yes, new initiatives. We fully understand that it is
:06:13. > :06:19.difficult to deliver March. But we need to start the discussion. --
:06:20. > :06:23.much. But at the same time it is very important to finish up what is
:06:24. > :06:26.on the table. OK, we will have to leave it there. OK. The start of a
:06:27. > :06:28.very long process, I am sure. Let's stay with the issue of Brexit,
:06:29. > :06:31.because tension is mounting in the UK's business community
:06:32. > :06:34.about the terms under which Britain The financial industry
:06:35. > :06:37.is particularly concerned. The Chairman of insurance market
:06:38. > :06:40.Llloyds of London has been warning that his company will have to move
:06:41. > :06:43.business out of the City if it is not given guarantees
:06:44. > :06:46.about its access to European At the moment, the single insurance
:06:47. > :06:49.market means Lloyd's can operate in all the other 27 member states
:06:50. > :06:54.via what's known as passporting. John Nelson is the Chairman
:06:55. > :07:08.of Lloyds of London and he joins me Hello. Good morning. Good morning to
:07:09. > :07:13.you. A wonder what happens to Lloyds of London if return does not
:07:14. > :07:20.maintain access to the single market of the EU. -- Britain. We have been
:07:21. > :07:25.developing contingency plans for some time. In fact, if you look at
:07:26. > :07:31.Lloyds as a whole, we are a very global market. We have a global hub
:07:32. > :07:36.of specialist insurance. We do business in 200 countries around the
:07:37. > :07:41.world. With regards to the EU, they are 11% of our business. A chunk of
:07:42. > :07:44.our business is insurance which is not directly affected. It is
:07:45. > :07:51.important to us, but it is not fundamental. So, if we don't get
:07:52. > :07:56.passport rights, as I said before, what we would have to do and what we
:07:57. > :07:59.would do is to write the business, that part of the business, a
:08:00. > :08:05.relatively small part of that business, but important, onshore EU.
:08:06. > :08:12.What contingency plans are you drawing up? Well, every insurer, in
:08:13. > :08:15.terms of the insurance industry, they have different business models,
:08:16. > :08:21.they have different priorities, the life sector has different issues to
:08:22. > :08:25.the general insurance sector which is what we are in. But most of us in
:08:26. > :08:33.the sector have our own contingency plans stop at OK. We will have
:08:34. > :08:35.delivered there. Short but sweet. But thank you for joining us from
:08:36. > :08:37.Singapore. Thank you. From Singapore back to London now,
:08:38. > :08:40.and Fashion Week which gets What do the Duchess
:08:41. > :08:44.of Cambridge, Samantha Cameron, and Michelle Obama,
:08:45. > :08:46.all have in common? They are all well-known
:08:47. > :08:48.as stylish dressers, and they are all fans
:08:49. > :08:50.of Serbian-born designer. Roksanda Ilincic, who is behind some
:08:51. > :08:53.of the designs you can see here. We have been speaking to her ahead
:08:54. > :08:56.of London Fashion Week, the biggest event in the fashion
:08:57. > :08:59.trade, which starts today. Here she is making
:09:00. > :09:01.final preparations. Ilincic left Serbia for London
:09:02. > :09:03.to study fashion, and went on to build a global business
:09:04. > :09:06.from scratch here in the UK. She has been telling our
:09:07. > :09:09.correspondent Emma Simpson why London remains at the centre
:09:10. > :09:25.of the global fashion industry. I think what London Fashion Week has
:09:26. > :09:38.managed to achieve in the last decade or more so is to create very
:09:39. > :09:43.big international buzz. All eyes are on us. Media, retailers, lovers of
:09:44. > :09:48.fashion, to see what we have come up with. Would you be where you are
:09:49. > :09:52.today if you had not in able to come to London? Definitely not. And this
:09:53. > :09:59.is a very straightforward answer, because London was always the best
:10:00. > :10:05.place to be if you are a young designer. Especially now that there
:10:06. > :10:12.are so many skills that are supporting young designers. London
:10:13. > :10:16.has come up with more support than when I started. There are many ways
:10:17. > :10:21.to encourage young designers in creativity. If I was not in London I
:10:22. > :10:26.don't think I would have achieved this, at least not in this time that
:10:27. > :10:27.I did hear. Just one more story for you.
:10:28. > :10:30.The US Department of Justice is asking Deutsche Bank to pay $14bn
:10:31. > :10:32.to settle an investigation into mortgage-backed securities.
:10:33. > :10:35.Deutsche Bank says it "has no intention to settle these potential
:10:36. > :10:37.civil claims anywhere near the figure cited."
:10:38. > :10:39.The claim against Deutsche, which is likely to be negotiated
:10:40. > :10:50.for several months, far outstrips investor expectations.
:10:51. > :11:08.The markets. Japanese stock rose. The Federal Reserve rate -- rate
:11:09. > :11:13.hikes are looking more unlikely. That is it.