27/10/2016

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:00:00. > :00:00.Now for the latest financial news with Sally and World Business

:00:00. > :00:22.Last chance saloon: The EU battles to save its free trade deal

:00:23. > :00:23.with Canada and rebuild its credibility.

:00:24. > :00:26.Plus, how deep is the black hole at Deutsche?

:00:27. > :00:29.We await news of massive losses at the bank the IMF has called

:00:30. > :00:46.Also in the programme: Samsung's smartphone earnings plunge.

:00:47. > :00:51.We'll have the latest from Rico in Singapore.

:00:52. > :00:55.So we start in Brussels, where this man, the Prime Minister

:00:56. > :00:58.of Canada, Justin Trudeau, was due to sign a major free trade

:00:59. > :01:06.That was the plan, the reality is that as of last night the deal

:01:07. > :01:09.was still being blocked by regional parliaments in Belgium and talks

:01:10. > :01:13.to break the deadlock will resume shortly.

:01:14. > :01:16.It's hugely embarrassing for the EU, which has been struggling to show

:01:17. > :01:24.unity and restore its credibility after Britain's Brexit vote.

:01:25. > :01:27.Let's just remind you what's at stake with this deal and it's

:01:28. > :01:29.called the Comprehensive Economic and Trade Agreement,

:01:30. > :01:33.or CETA for short, and it aims to eliminate 98% of tariffs

:01:34. > :01:42.That could save EU exporters more than $500 million every year.

:01:43. > :01:44.Supporters say the deal would increase trade by some 20%,

:01:45. > :01:53.However, critics say it would give too much power to big business.

:01:54. > :01:56.They are worried EU regulations on product standards would be

:01:57. > :01:58.weakened and that multinationals would be able to sue governments

:01:59. > :02:10.It's taken seven years of talks to get to this point and 27

:02:11. > :02:18.out of 28 EU governments want to sign the agreement.

:02:19. > :02:21.But Belgium cannot back the deal because three of their regional

:02:22. > :02:24.parliaments in French-speaking parts of the country are blocking it.

:02:25. > :02:29.The row demonstrates just how hard it might be for the UK to do

:02:30. > :02:32.a post-Brexit trade deal with an EU that has

:02:33. > :02:38.On Thursday Canada's trade minister could scarcely hide her frustration.

:02:39. > :02:41.Today, 27 and half of the member states of Europe do support CETA.

:02:42. > :02:48.As we have said on many occasions, and as I am very happy to repeat

:02:49. > :02:50.today, this is an excellent agreement.

:02:51. > :02:53.It's an agreement that as the Prime Minister has just said

:02:54. > :02:56.in the House of Commons, we made significantly more

:02:57. > :02:59.progressive since we came into office.

:03:00. > :03:03.I am not - I'm going to disappoint the journalists here -

:03:04. > :03:08.I am not at this time going to deal in hypotheticals.

:03:09. > :03:11.As of this moment, the summit remains on Europe's agenda

:03:12. > :03:24.If there is a deal to sign tomorrow, Canada will be there.

:03:25. > :03:27.But as we have said, the ball today is in Europe's court.

:03:28. > :03:30.Charles Lichfield covers Europe for the political risk consultants

:03:31. > :03:42.Good morning. What you think will happen? There are still negotiations

:03:43. > :03:46.going on and you can imagine we will wait for the deal is to be signed.

:03:47. > :03:50.They could also decide not to sign the deal and the negotiations go on

:03:51. > :03:56.for the next two months. But it is quite likely that Europe manages to

:03:57. > :04:04.get the CETA deal. Question for me is now whether any other partners

:04:05. > :04:08.will be willing to engage in serious negotiations, knowing that every

:04:09. > :04:12.single parliament will have a say and be able to bring in their local

:04:13. > :04:17.politics. That is the big question now, given the experience Canada has

:04:18. > :04:21.had. What does this mean for future trade agreements with the EU? It

:04:22. > :04:24.will be difficult. The fashion for trade agreements is to have

:04:25. > :04:29.complicated agreements that don't have the removal of tariffs, but

:04:30. > :04:32.also remove a number of nontariff barriers and also have a

:04:33. > :04:38.concentration on investment and providing assurances to investors.

:04:39. > :04:44.That's what is at stake here. In the future I don't think the Americans

:04:45. > :04:51.are going to be especially confident. Similar for what will

:04:52. > :04:55.happen with UK- EU relations. There will have to be a comprehensive

:04:56. > :04:58.trade deal eventually wants the UK has left and I don't think

:04:59. > :05:07.Parliament will be completely sidelined on this. TTIP has been

:05:08. > :05:10.under discussion for a long time and there has been a lot of protest

:05:11. > :05:14.about that as well, certainly in Brussels and elsewhere. How does

:05:15. > :05:19.Brussels move forward? How does the European Commission and European

:05:20. > :05:24.ministers go forward? If they have this kind of situation every time

:05:25. > :05:28.they try to broker a trade deal if -- it will take them years if not

:05:29. > :05:32.longer and it will be very difficult. I think the commission is

:05:33. > :05:35.learning that they can't just argue trade is good and therefore we must

:05:36. > :05:41.sign the deal is, they are starting to learn that the need to provide

:05:42. > :05:45.more assurances and offer some protections for Europeans. We

:05:46. > :05:51.already saw on Thursday and Friday a conversation about not just free

:05:52. > :05:55.trade but also protection measures, or tariffs that are specially

:05:56. > :06:00.targeting other countries which have managed to use price dumping. So I

:06:01. > :06:04.think they will try to be more flexible and rapid free trade with

:06:05. > :06:12.policies that protect some European businesses. Thanks for your time

:06:13. > :06:14.this morning. When we get news of any movement with that today we will

:06:15. > :06:16.keep you across it on the BBC. We are also looking

:06:17. > :06:19.at the bank the IMF called Germany's biggest lender

:06:20. > :06:24.Deutsche Bank announces results Analysts think it could have

:06:25. > :06:29.lost some $660 million, that's a third of $1 billion,

:06:30. > :07:42.in the past three months. Deutsche bank results are due to be

:07:43. > :07:46.released in just over half an hour. We will update you when we get the

:07:47. > :07:51.numbers and we will have expert analysis as well. The other company

:07:52. > :07:52.out with its latest earnings is Samsung.

:07:53. > :07:56.Samsung Electronics has vowed to recover quickly

:07:57. > :07:58.after the disastrous set of financial results.

:07:59. > :08:01.It has reported a 30% plunge in operating profits in the past

:08:02. > :08:04.three months, in line with the warning it gave

:08:05. > :08:10.It's no surprise of course, after the company was forced

:08:11. > :08:15.to recall its flagship Galaxy Note 7 smartphones following a spate

:08:16. > :08:28.Those images went worldwide and all but wiped out its pockets from the

:08:29. > :08:30.mobile phone division, which has been the main driver of its success

:08:31. > :08:30.in recent years. Rico Hizon is following this

:08:31. > :08:39.for us in Singapore. We knew the news was going to be

:08:40. > :08:48.bad, this is pretty grim, isn't it? It is. Samsung's what online has

:08:49. > :08:53.been somewhat burdened by the Galaxy Note 7 scandal and it has written

:08:54. > :08:57.off about $5 billion in recall expenses and lost sales, but the

:08:58. > :09:01.company says it is confident things will pick up in the next quarter and

:09:02. > :09:08.if you take a look at the stock price it seems the market agrees. It

:09:09. > :09:16.is up today by almost 2%. We spoke to someone from the company grew --

:09:17. > :09:19.Quest Factory and he said it was almost behind them, except for one

:09:20. > :09:23.issue. We don't really know what happened and Samsung haven't said

:09:24. > :09:27.what happened, which implies to me they don't know exactly what

:09:28. > :09:32.happened. Beyond that I think of of this is behind us, based on what we

:09:33. > :09:40.currently know. They've done the recall, they've taken the charge.

:09:41. > :09:44.The uncertainty is that there are some notes seven customers who are

:09:45. > :09:52.holding out for a better deal and have asked for a roadmap. They want

:09:53. > :09:58.to stay with the Note family, so it will continue. Samsung has said

:09:59. > :10:02.that. They say they will re-examine every aspect of the Galaxy Note 7,

:10:03. > :10:06.hardware, software, to determine what led to the phone's

:10:07. > :10:13.cancellation. Thanks a lot. Good to see you. If I

:10:14. > :10:17.say goodbye, the chairman of India's Tata Group warns the company might

:10:18. > :10:23.have to write off investments worth some $80 billion. This is in a

:10:24. > :10:28.letter to the board. -- $18 billion. He said he became a lame duck

:10:29. > :10:33.chairman due to constant in -- interference. Tata said it currently

:10:34. > :10:38.had no response to these allegations. We will be deeper into

:10:39. > :10:43.these allegations in a few minutes. There are a lot of stories I haven't

:10:44. > :10:52.been able to mention today. Kessler making progress and Snapchat may go

:10:53. > :11:03.into flotation next year. -- Tesla. Goodbye for now.

:11:04. > :11:07.Sally will be joining me lately for the papers full -- joining me soon

:11:08. > :11:08.for the papers. Scientists say every child should be

:11:09. > :11:11.screened for an inherited form of heart disease when they

:11:12. > :11:15.have their routine jabs.