16/02/2017 World Business Report


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Now for the latest financial news with Aaron Heslehurst


The European Parliament backs a big trade deal with Canada.


Could it serve as a model for a future British


Prosecutors in South Korea get another shot at arresting the big


That bloke in the middle with the suit!


Good morning, Britain. Hello, world. I am sitting down for once. If this


is your first time, I have eight minutes to tell you what is going on


in the business world. After eight years of negotiations,


the EU parliament has approved a landmark free trade


deal with Canada. Lawmakers in Strasbourg voted


in favour of the so-called CETA agreement, which is hoped to add


billions of dollars both sides Once fully implemented,


the deal will eliminate 99% of the tariffs between Canada


and the EU, increase trade by 22.9%, and the European Commission


estimates that this could increase trade between the two


by nearly a quarter. Now that the EU Parliament has given


the green light to the deal, both sides can start


removing trade barriers. But the agreement goes


beyond the simple removal of tariffs and calls for further reforms


which would require ratification That is important to stress. That is


about, what, 28 EU members, and take out the UK.


This includes controversial measures such as the creation of a dedicated


court to settle disputes between governments and investors.


CETA is Canada's biggest trade deal since the North America Free Trade


pointed to CETA as a potential model for Brexit once the UK formally


With me is Allie Renison from the Institute of Directors.


It is good to happy with at this horrible hour. Many members of the


European Parliament are patting their backs. They call it Europe's


most modern ever trade deal. They said EU policy will never be the


same again. Is this a watershed moment? It is as we have events


spiralling beyond the control of the EU, like President Trump and anti-


free trade rhetoric. The deal was not signed. There was the element of


the Belgium problem in holding up the signature. Summer events have


conspired to make it a slightly bigger watershed moment than it


should have been. -- some events. Critics really do not like this.


They are using terms... They are saying yes to Ceta is a trampling of


the people, calling it a Trojan horse, and a threat to democracy and


the rule of law. That is because of the creation of investor state


dispute. It has greater investor protection. That benefits


multinational companies. Can you break that down? It allows


investors, if they set up a huge investment, take for example


Germany, after Germany decided it did not want nuclear energy any


more, a Swedish nuclear company sued them saying that it takes away their


losses and they wanted to recoup them. This is commercial law. It is


done by investment treaties being incorporated into trade treaties.


People are finding it for the first time about these investor state


dispute settlement provisions. They have been going on for 50 years.


Germany is the biggest critic. That is where it originated in. People


are coming to grips with something that has been around a long time.


Some are asking the question, could this be used as a model for British


- Canadian trade deals? Once they leave the EU. This is certainly a


model in that it is a trade agreement, but it goes nowhere near


matching the level of access we have now. 99% of tariffs, but in


sensitive areas of the agriculture, tariffs were phased out over a long


time. You would want to go much further with a Brexit deal. I have


to move on. But I was saying how this goes beyond tariffs. Anything


else added to the deal has to be approved by 28 other governments,


right? We are jumping ahead of ourselves. It has been signed but it


has to be ratified. That is it big thing to do, to get 28 governments


to agree. You can sometimes need smaller governments within those


governments to agree as well. Great stuff. Thank you. We appreciate it.


You can get out of here and warm up. USA and earlier how cold it was. --


you were saying earlier. For the second time in three weeks,


a court will decide whether to grant a request to arrest the head


of South Korea's largest company. A hearing is under way


where prosecutors will be trying to persuade a judge that there


is enough evidence to arrest JY Lee, He's a suspect in a bribery


investigation which could bring down the country's president,


President Park. Rico Hizon has been


following the story from our It is great to see you, my friend. A


lovely day to you. This guy is a big fish. Yes. What are the chances of


the prosecutors getting this through the judges? Let me tell you, the


prosecutors are throwing big kitchensink at Jay Y Lee. They have


expanded charges against him to include bribery, embezzlement,


hiding assets, and perjury. Prosecutors have focused on Samsung


Group's relationship with the president of South Korea, accusing


him of giving $38 million to business organisations backed by Ms


Park's friend for support of two Samsung companies. But of course,


all of the parties have denied these accusations, and prosecutors are


also requested the arrest warrant of the CEO of Samsung Electronics. We


will find out later today or later tomorrow morning if the arrest


warrant will be issued against the Chief of Samsung and the head of


Samsung Electronics. I am waiting with bated breath. Hopefully I will


talk to you tomorrow if you are in. I am in, are you? I am. See you


soon. Let us talk about Lufthansa. The boss of Lufthansa says the firm


has made great progress The German carrier is under fierce


competition from low-cost rivals, and has suffered more than a dozen


strikes over the past 12 months As a part of our series


on the challenges facing the global airline industry we've been speaking


with Lufthansa's Chief Executive, Eurowings, was crucial


for Lufthansa in allowing it We have places in Germany,


Stuttgart, Luxembourg, Hamburg, they are rich business centres


themselves, and we had to realise we could not compete there with our


brand of Lufthansa and the cost of it. We had to create a new brand


which is still the best value for money but at much lower cost and


that was a necessity. We started late on that which forced us to


really accelerate over the last two years. But we have now reached the


number one position and we are number three in Europe in this


regard. That was quite a race over the last two years. You have paid a


price for this. There has been a great deal of industrial action


costing you a lot of money. Will you look back on this and say it was all


worthwhile? Two things came together on industrial action. First of all,


every legacy alive that still carries on money has to go through


that process. Secondly, unfortunately, unions tend to see


internal competition much more critically banned external


competition. -- than. That is why we overcame an issue we would have to


have overcome any way. That is why it is so important that Eurowings


were offered well-paid jobs, much better than competitors. We provide


good standard up to European standards. That creates a business


model. Are the unions now seeing the big picture? We made great progress.


Now we have 95% of our staff on either new contracts or modified


contract. We had a huge issue with pensions, as many other German


companies were able to solve, with 95% of our staff. I am sure we will


be able to find solutions for the remainder of our staff. I am Aaron


Heslehurst. Thank you for sharing your time with me. I will be back


later. Goodbye. Social care for elderly people


is on the brink of collapse in some parts of England, according


to the charity, Age UK. It says more than 50,000 people


are now not receiving any help,