:00:17. > :00:24.A $600 billion trade relationship must be re-drawn.
:00:25. > :00:31.Plus, they won't catch fire - but will they set the tech world
:00:32. > :00:35.Samsung reveals its S8 smartphones, as it tries to repair a singed
:00:36. > :00:53.I am Sally Bundock. We start again with Brexit.
:00:54. > :00:56.The massive task now begins of agreeing the terms of Britain's
:00:57. > :01:04.There's a huge amount at stake for businesses here in the UK,
:01:05. > :01:08.and across the remaining 27 EU countries, in the form of a trading
:01:09. > :01:11.relationship worth hundreds of billions of dollars a year.
:01:12. > :01:18.So a failure to strike a deal would be damaging to all sides, but who
:01:19. > :01:27.has really got the upper hand? If we have a look at the numbers, it might
:01:28. > :01:32.give you some conclusions. In 2015, the UK exported $274 billion worth
:01:33. > :01:37.of goods and services to the EU. That is 44% of all UK exports. So
:01:38. > :01:43.that is a sizeable chunk. It represents 13% of the entire British
:01:44. > :01:52.economy. If we look the other way, the EU exported by more to the UK in
:01:53. > :01:59.money terms than vice-versa. This figure here, $360 billion in the
:02:00. > :02:03.same year. So it runs a large trade surplus, over $80 billion, with the
:02:04. > :02:08.UK. So you can argue, from that point of view, it has more to lose
:02:09. > :02:12.in these negotiations. But the EU as a whole is far less reliant on
:02:13. > :02:18.Britain than the other way around. It is actually just 16% of all EU
:02:19. > :02:27.exports that come to the UK. And they account for barely more than 3%
:02:28. > :02:31.of the bloc's economy. Of course, different countries and industries
:02:32. > :02:36.armed more reliant on the relationship of UK. The German car
:02:37. > :02:43.industry has a huge amount to lose, as does the UK's financial industry.
:02:44. > :02:46.We speak to the director of the German association for foreign
:02:47. > :02:52.policy for more on this. Good morning and welcome to World
:02:53. > :02:55.Business Report. Good morning. It is interesting, it yesterday we all
:02:56. > :03:00.sides in this debate, the UK Prime Minister, and of course Angela
:03:01. > :03:04.Merkel and other leaders in Europe, Theresa May said we want a different
:03:05. > :03:09.relationship, but with the same benefits. Is she just overly
:03:10. > :03:14.optimistic, here? Is that realistic or not? There is indeed a huge risk
:03:15. > :03:19.that the two-year period for negotiating Brexit is not quite
:03:20. > :03:23.enough to find a deal, in particular in terms of trade relationships and
:03:24. > :03:26.financial relationships. It shows that all sides had the same
:03:27. > :03:33.benefits. Because basically, if the UK leads the single market, both
:03:34. > :03:37.trades, goods, and services, but also the financial sector will
:03:38. > :03:43.suffer. Leaving the financial market will mean more costs for companies.
:03:44. > :03:49.It will mean possibly more tariffs and taxes. All this will be very
:03:50. > :03:52.costly for business. From Brussels' perspective, they seem to have made
:03:53. > :03:58.it clear that the UK cannot expect the same benefits in the future if
:03:59. > :04:02.it is not a member of the club. That is actually true. If you decide to
:04:03. > :04:06.leave the single market, and you decide not to accept the fact that
:04:07. > :04:09.there is a lot of joint regulation, that they should not be any
:04:10. > :04:13.barriers, then you have left the single market. I think that is a
:04:14. > :04:18.sober truth. And now, the question is whether the European Commission
:04:19. > :04:22.will stay tough on the question of sequencing. The position right now
:04:23. > :04:28.in Brussels and very much in other places in the continent, the first
:04:29. > :04:32.thing to do is to negotiate the way out, and then turned towards the new
:04:33. > :04:35.relationship, meaning trade agreements will then be negotiated.
:04:36. > :04:39.That sequencing is obvious a starting position in the
:04:40. > :04:43.negotiations. Maybe they will be preparations of the way. But the
:04:44. > :04:48.two-year period is rather short to get all this sorted out. It is
:04:49. > :04:53.short. The timeline is very tight, isn't it? And actually, many argue
:04:54. > :04:56.that the ducks need to be in a row within 18 months to get it through
:04:57. > :05:02.all the national parliaments within the two-year frame? Yes. That is
:05:03. > :05:06.true. Ratification is a huge task will stop there might be some
:05:07. > :05:11.countries that are slower than others. Others will not think that
:05:12. > :05:16.Brexit is a big deal, but there may be big negotiations. So we should
:05:17. > :05:22.not do is that the threat we should not forget this is a technical issue
:05:23. > :05:26.but a hugely political one. One of the fears in places like Germany,
:05:27. > :05:32.which has declared that it has as its major interest to keep the EU 27
:05:33. > :05:36.together is that Britain might cause other to copy. The idea among some
:05:37. > :05:41.people close to the negotiations here is not to make it too easy, so
:05:42. > :05:47.that others will not follow. Think every time. Very interesting to get
:05:48. > :05:52.your perspective on this. Of course, we have two bear in mind that they
:05:53. > :05:58.have an election that to the end of this year. So interesting times.
:05:59. > :06:04.Lots more on our website. But let's talk about the other big business
:06:05. > :06:11.story of the last ready for hours. Late yesterday, Samsung unveiled its
:06:12. > :06:21.latest flagship models at an event in New York. The Galaxy as eight and
:06:22. > :06:25.S8 Plus feature artificial intelligence and the largest
:06:26. > :06:36.wraparound screen is ever made. -- S8.
:06:37. > :06:39.They are the first major product launch since Samsung had to recall -
:06:40. > :06:42.and then scrap - its Note 7 last autumn
:06:43. > :06:45.Will the S8 help it win back customers
:06:46. > :06:48.and regain the market leadership it has since lost to Apple?
:06:49. > :07:05.Here they are. They all have their own virtual assistant, Bixby. Bixby
:07:06. > :07:10.can use the camera as a set of eyes. Samsung calls to the S8 an art form,
:07:11. > :07:13.but is still a pretty familiar sight. So what does is new? The
:07:14. > :07:18.fingerprint button has mooted the back, but now there is also pressure
:07:19. > :07:22.recognition screen unlocking and an improved split scene. Unlike Apple,
:07:23. > :07:26.they are sticking with the traditional headphone jack. It can
:07:27. > :07:32.also dock with a monitor or TV if you need a bigger screen. But after
:07:33. > :07:39.the disaster of the note seven's including batteries, doubt our less
:07:40. > :07:44.risk. We took a lot of blessings on the budget. We have implemented new
:07:45. > :07:47.types of control and you quality assurance processes, that we are of
:07:48. > :07:54.course implementing in the production of the S8 and S8 Plus. It
:07:55. > :08:02.is 61 with lots of sunshine today. It is perhaps characteristic of
:08:03. > :08:04.their new cautious approach that it speaks only American English and
:08:05. > :08:05.Korean for now. Jack Courtez is Editor
:08:06. > :08:14.of Mobile Magazine. What do you make of it? It is a
:08:15. > :08:17.strong launch from Samsung, especially conveyed to previous
:08:18. > :08:21.years. I think they have done a lot to address previous failings in
:08:22. > :08:26.terms of only the express with the customer. They had a lot to win, it
:08:27. > :08:34.could me? They had a lot to lose with the complete recall of the Note
:08:35. > :08:37.seven. It went viral. Wheels are sought the images of this those that
:08:38. > :08:46.were black and completely destroyed. Is this enough? We heard there from
:08:47. > :08:51.Zoe about Bixby and all the bells and whistles. Is that enough? I
:08:52. > :08:55.think the biggest thing is they need to win people back. We heard
:08:56. > :09:00.thereabout Bixby. Until you see that inaction on how it plays out in the
:09:01. > :09:05.UK, it is hard to tell how that will play out. Especially with Bixby,
:09:06. > :09:08.British English will not come out later this year. One of the
:09:09. > :09:13.interesting things is that you can put it in a dock on your desk and it
:09:14. > :09:17.will connect to your PC and et cetera. It is pretty similar to
:09:18. > :09:21.Microsoft Windows continuum, which is a flexible working tool that
:09:22. > :09:26.allows you to use your offer is a desktop computer. I think the Galaxy
:09:27. > :09:32.Note 7 was a business device. Building a bigger screen into the S8
:09:33. > :09:38.and adding the Dustov mode really helps about. The question is, Jack,
:09:39. > :09:44.will compete with Apple? They are launching a new phone in September
:09:45. > :09:49.to mark ten years since entering the business. And Huawei are entering
:09:50. > :09:58.the business world. There is competition on all sides, is me?
:09:59. > :10:03.There is a move towards the Apple model for owning the Mac earning
:10:04. > :10:11.consumer engagement and when you make a switch, you stay with the
:10:12. > :10:15.brand. -- for earning. There will be another big launch from Huawei in
:10:16. > :10:19.the next few days in the UK. They have a lot on their plate. They give
:10:20. > :10:21.real-time, Jack. So we'll keep our eye on that Huawei launch later in
:10:22. > :10:22.the day as well. The insurance market Lloyd's
:10:23. > :10:25.of London will establish a new European base in Brussels
:10:26. > :10:28.to avoid losing business when the UK leaves the EU, according
:10:29. > :10:30.to press reports. The company has not confirmed
:10:31. > :10:33.the decision, but said it would make It has been weighing up different
:10:34. > :10:37.locations on the continent. Without the move, it says Brexit
:10:38. > :10:40.could have a significant impact on its continental business
:10:41. > :10:50.which generates 11% of premiums. UK car maker Vauxhall
:10:51. > :10:53.is to end its multi-million pound sponsorship of the home nations
:10:54. > :10:56.football teams after the 2018 World The brand owned by General Motors
:10:57. > :11:00.has been the lead sponsor of the England, Scotland,
:11:01. > :11:02.Wales and Northern Ireland But a spokeswoman said Vauxhall
:11:03. > :11:05.wanted to start running separate marketing campaigns
:11:06. > :11:07.for individual models. The deal for the England team
:11:08. > :11:11.is thought to be worth in the region of ?5 million to ?6
:11:12. > :11:21.million per year. That is all from me. I will be back
:11:22. > :11:23.in just a few minutes. We will review the new stories. I will see
:11:24. > :11:27.you then.