06/07/2017 World Business Report

Now on BBC News, it's time for Ben and World Business Report.

Never mind Brexit and Trump: That's the message as the EU and Japan

close in on a huge free trade deal, but can it see off the rise

Plus: High steaks scandal - why a corruption probe is carving

a slice out of Brazil's multi-billion dollar meat industry.

In a moment, it's 30 years since KFC launched in China,

but the nation's hunger for fast food is slowing.

But we start in Brussels, where, in a few hours' time,

the EU and Japan will sign off a major trade deal

covering everything from cars to cheese.

It comes despite doubts around the world about free trade deals

and the rise of trade protectionism in the US under

Japan and the EU account for about a third of global GDP -

Both sides believe their trade relationship has room to grow,

EU officials say the deal will boost the EU economy

by 0.8%, and Japan's by almost a third of a percent.

Among the big winners, the car industry.

The EU will scrap a 10% duty on Japanese car imports,

while Japan will remove barriers to entry for European automakers.

Partly because of Brexit, European leaders want to reinforce

the value of the EU after the UK's decision to leave.

Remember, he pulled the US out of the Trans-Pacific Partnership,

a major trade deal between the US, Japan and their Pacific neighbours.

And talks have lapsed on the vast EU-US trade deal known as TTIP,

as the head of Europe's business lobby group explains.

It is important if the EU and Japan conclude this agreement just before

the G20 summit. It will be an important political science for

other economies that trade is good and that two of the leading G20

economies are making a positive step towards free and more fair trade. --

political sign. Allie Renison is Head

of Europe and Trade policy How important is this deal, giving

the turning away from major international trade deals? Is very

important. At the end of last year, this did not look like it was going

to be. There are still a lot of what they call legal scrubbing is to go

on. But they did not think there were going to get this through. I

think that Donald Trump pulling out of the TTIP has given them the extra

kit to make sure that Japan and the EU can show that they can pick up

the baton where others have dropped it. In the scale of the trade

relationship between the EU and Japan, one of the things that struck

me is that I am surprised they did not do you a deal like this before.

Why now? It is interesting that you talk about scrapping tariffs on

automobiles. That is significant for the EU and for Japan. Right now, it

is interesting when looking at this transition in terms of

implementation, that is one of the balancing act that both sides have

had to play in terms of making concessions and scrapping duties.

The other interesting thing is, you have said it will take seven years

for those who take effect, but where this leaves the relationship between

the UK and Japan, if Japan is going to grow closer ties and a strong

relationship, does that mean that the relationship between the UK and

Japan could be damaged? I think there could be eight benefit for the

UK. I'm talking specifically about tariffs. If the UK can manage to

retain the benefits, and the deal is signed and enforced by the time the

UK leads, it could actually still apply to the UK, but that could be

negotiation with the EU. I think it is in the UK's interests that this

deal is enforced before it leaves the EU. What do you think the major

hurdles go to be when it starts to take a fact? When will we see some

backlash? With respect to automobiles, that is why you have

that seven-year period. Agriculture is or is a sticking point. They have

a lot of legal scrubbing to go through to make sure that they agree

a deal that scrap some of the tariffs in sensitive areas, such as

pork and dairy. Those are sticking points at the last minute. Thank you

very much for joining us. Good to hear your thoughts.

The country accounts for almost a fifth of the world's meat exports.

But in March local police uncovered a bribery scheme,

where health officials allegedly allowed tainted meat to reach

supermarket shelves and even school meals.

Although the companies involved deny wrongdoing,

shares of market leader, JBS, plunged 40%.

So can Brazil's reputation as the world's largest meat

The BBC's Daniel Gallas reports from Brazil's Santa Fe Do Sul.

The cattle on this farm roam free in Santa Fe Do Sul. Rangers here now

have no one to sell the cows do. TRANSLATION: This is not like foot

and mouth disease that occurs in nature. This was caused by corporate

corruption. Prices fell sharply. It is the lowest price in the past four

years. Farmers like this are part of an army of 4 million people that

helped in Brazil into one of the world's against meat producing

nations. But this scandal is bringing uncertainty to what was a

very probable business. At its height, JBS employed to 60 employees

-- 260,000 employees. But then it was revealed that bribes were paid

to politicians at the request of the present president.

TRANSLATION: Michel Temer denies the charges. JBS

were involved in a scandal about brides that were paid to help

officials that raise questions about the safety of Brazilian beat around

the world. But JBS says that food safety was not uppermost. But such

open lines between JBS and the president has had its effect. Cattle

prices are tumbling and factory is closing down. The US has now banned

some risen me from being sold. And Europe is investigating the quality

of meat imports. TRANSLATION: The Brazilian

government would need to act to get the message across that their meat

is safe for consumption and defend its reputation. But with the

government at war with the top meat company, that is not likely to

happen soon. That war now has millions of farmers worried about

the future of their businesses. A reputation that took decades to

establish will likely take years to repair.

Let's stay with the food industry because it's been 30 years

since the first KFC restaurant opened in China.

Last year KFC's US owners, Yum Brands, spun off the Chinese

business into a separate company, Yum China.

It's been trying to cash in on rising demand

for Western-style fast food in China.

As well as KFC, it also owns the Pizza Hut and Taco Bell chains

across the world's number two economy.

That's more than 7600 outlets throughout the country.

It has just reported results for the past three months,

and Rico has been looking

Are you a Peter Lonard? I do enjoy the odd slice. -- pizza lover. That

is good, because in China, consumers are still not into the picture. And

that is why it Pizza Hut's sluggish sales have dragged down the

quarterly sales of Yum China in the past quarter. Sales rose 3% in the

first quarter of 2017. That was for Casey. But for Pizza Hut, it was

flat. Chicken is popular in MMM. -- that was fought KFC. Yum, which is

the biggest fast food brand, has been looking to bulk up the market.

But there have been food safety scares and changing consumer tastes,

along with a wider economic slowdown and competition. The committee has

been trying to symbol by its menu as well as making a push on mobile

payment and delivery. It bought a recent controlling stake in a food

delivery service. With all these changes and a new strategy,

hopefully we will see better numbers for KFC China this quarter.

British Airways cabin crew are to stage a further two weeks

of strikes, in a long running dispute over pay and benefits.

So-called "mixed-fleet" cabin crew, who are paid less than longer

standing staff, will walk out for 14 days on 19 July,

in a strike called by the Unite union.

The strike will begin three days after the end

BA says instead of striking, Unite should allow its members

to vote on the pay deal reached two months ago.

Don't forget you can get and hat with me and some of the team on

Twitter. I will be back in just a moment to go through the papers.

The risk of attacks on UK soil by supporters of the self-styled

Islamic State group could increase as IS