30/03/2017 World Business Report

A $600 billion trade relationship must be re-drawn.

Plus, they won't catch fire - but will they set the tech world

Samsung reveals its S8 smartphones, as it tries to repair a singed

I am Sally Bundock. We start again with Brexit.

The massive task now begins of agreeing the terms of Britain's

There's a huge amount at stake for businesses here in the UK,

and across the remaining 27 EU countries, in the form of a trading

relationship worth hundreds of billions of dollars a year.

So a failure to strike a deal would be damaging to all sides, but who

has really got the upper hand? If we have a look at the numbers, it might

give you some conclusions. In 2015, the UK exported $274 billion worth

of goods and services to the EU. That is 44% of all UK exports. So

that is a sizeable chunk. It represents 13% of the entire British

economy. If we look the other way, the EU exported by more to the UK in

money terms than vice-versa. This figure here, $360 billion in the

same year. So it runs a large trade surplus, over $80 billion, with the

UK. So you can argue, from that point of view, it has more to lose

in these negotiations. But the EU as a whole is far less reliant on

Britain than the other way around. It is actually just 16% of all EU

exports that come to the UK. And they account for barely more than 3%

of the bloc's economy. Of course, different countries and industries

armed more reliant on the relationship of UK. The German car

industry has a huge amount to lose, as does the UK's financial industry.

We speak to the director of the German association for foreign

policy for more on this. Good morning and welcome to World

Business Report. Good morning. It is interesting, it yesterday we all

sides in this debate, the UK Prime Minister, and of course Angela

Merkel and other leaders in Europe, Theresa May said we want a different

relationship, but with the same benefits. Is she just overly

optimistic, here? Is that realistic or not? There is indeed a huge risk

that the two-year period for negotiating Brexit is not quite

enough to find a deal, in particular in terms of trade relationships and

financial relationships. It shows that all sides had the same

benefits. Because basically, if the UK leads the single market, both

trades, goods, and services, but also the financial sector will

suffer. Leaving the financial market will mean more costs for companies.

It will mean possibly more tariffs and taxes. All this will be very

costly for business. From Brussels' perspective, they seem to have made

it clear that the UK cannot expect the same benefits in the future if

it is not a member of the club. That is actually true. If you decide to

leave the single market, and you decide not to accept the fact that

there is a lot of joint regulation, that they should not be any

barriers, then you have left the single market. I think that is a

sober truth. And now, the question is whether the European Commission

will stay tough on the question of sequencing. The position right now

in Brussels and very much in other places in the continent, the first

thing to do is to negotiate the way out, and then turned towards the new

relationship, meaning trade agreements will then be negotiated.

That sequencing is obvious a starting position in the

negotiations. Maybe they will be preparations of the way. But the

two-year period is rather short to get all this sorted out. It is

short. The timeline is very tight, isn't it? And actually, many argue

that the ducks need to be in a row within 18 months to get it through

all the national parliaments within the two-year frame? Yes. That is

true. Ratification is a huge task will stop there might be some

countries that are slower than others. Others will not think that

Brexit is a big deal, but there may be big negotiations. So we should

not do is that the threat we should not forget this is a technical issue

but a hugely political one. One of the fears in places like Germany,

which has declared that it has as its major interest to keep the EU 27

together is that Britain might cause other to copy. The idea among some

people close to the negotiations here is not to make it too easy, so

that others will not follow. Think every time. Very interesting to get

your perspective on this. Of course, we have two bear in mind that they

have an election that to the end of this year. So interesting times.

Lots more on our website. But let's talk about the other big business

story of the last ready for hours. Late yesterday, Samsung unveiled its

latest flagship models at an event in New York. The Galaxy as eight and

S8 Plus feature artificial intelligence and the largest

wraparound screen is ever made. -- S8.

They are the first major product launch since Samsung had to recall -

and then scrap - its Note 7 last autumn

Will the S8 help it win back customers

and regain the market leadership it has since lost to Apple?

Here they are. They all have their own virtual assistant, Bixby. Bixby

can use the camera as a set of eyes. Samsung calls to the S8 an art form,

but is still a pretty familiar sight. So what does is new? The

fingerprint button has mooted the back, but now there is also pressure

recognition screen unlocking and an improved split scene. Unlike Apple,

they are sticking with the traditional headphone jack. It can

also dock with a monitor or TV if you need a bigger screen. But after

the disaster of the note seven's including batteries, doubt our less

risk. We took a lot of blessings on the budget. We have implemented new

types of control and you quality assurance processes, that we are of

course implementing in the production of the S8 and S8 Plus. It

is 61 with lots of sunshine today. It is perhaps characteristic of

their new cautious approach that it speaks only American English and

Korean for now. Jack Courtez is Editor

of Mobile Magazine. What do you make of it? It is a

strong launch from Samsung, especially conveyed to previous

years. I think they have done a lot to address previous failings in

terms of only the express with the customer. They had a lot to win, it

could me? They had a lot to lose with the complete recall of the Note

seven. It went viral. Wheels are sought the images of this those that

were black and completely destroyed. Is this enough? We heard there from

Zoe about Bixby and all the bells and whistles. Is that enough? I

think the biggest thing is they need to win people back. We heard

thereabout Bixby. Until you see that inaction on how it plays out in the

UK, it is hard to tell how that will play out. Especially with Bixby,

British English will not come out later this year. One of the

interesting things is that you can put it in a dock on your desk and it

will connect to your PC and et cetera. It is pretty similar to

Microsoft Windows continuum, which is a flexible working tool that

allows you to use your offer is a desktop computer. I think the Galaxy

Note 7 was a business device. Building a bigger screen into the S8

and adding the Dustov mode really helps about. The question is, Jack,

will compete with Apple? They are launching a new phone in September

to mark ten years since entering the business. And Huawei are entering

the business world. There is competition on all sides, is me?

There is a move towards the Apple model for owning the Mac earning

consumer engagement and when you make a switch, you stay with the

brand. -- for earning. There will be another big launch from Huawei in

the next few days in the UK. They have a lot on their plate. They give

real-time, Jack. So we'll keep our eye on that Huawei launch later in

the day as well. The insurance market Lloyd's

of London will establish a new European base in Brussels

to avoid losing business when the UK leaves the EU, according

to press reports. The company has not confirmed

the decision, but said it would make It has been weighing up different

locations on the continent. Without the move, it says Brexit

could have a significant impact on its continental business

which generates 11% of premiums. UK car maker Vauxhall

is to end its multi-million pound sponsorship of the home nations

football teams after the 2018 World The brand owned by General Motors

has been the lead sponsor of the England, Scotland,

Wales and Northern Ireland But a spokeswoman said Vauxhall

wanted to start running separate marketing campaigns

for individual models. The deal for the England team

is thought to be worth in the region of ?5 million to ?6

million per year. That is all from me. I will be back

in just a few minutes. We will review the new stories. I will see

you then.