this is your business briefing. i'm sally bundock. brexit backlash — business leaders reject the british prime minister's latest proposals calling for near frictionless trade with the european union when the uk leaves. a stunning fall from grace. former malaysian prime minister najib razak is officially charged in a probe linked to the 1mdb fund. to the mark the asia, we are seeing declines. japan down nearly half a percent. wall street will be closed. it's the multi—million dollar brexit question — what will the future trade relationship with the european union look like? the uk business lobby group, the institute of directors, has released a survey of nearly 800 business leaders,

claiming the majority want post—brexit customs arrangements that avoid the need for new customs processes with the eu. the british government has yet to agree on exactly what it wants — a lack of clarity that's frustrating all involved, especially business bosses. so what options is the uk government considering? one proposal is a customs partnership, meaning the uk applies the eu's own tariffs to all goods arriving in the country. and this would create a frictionless border. another, known as maximum facilitation, or max fac, would employ new technology and other schemes to remove the need for physical customs checks where possible. iod members say this is not frictionless enough. now, there's talk of a third option. sources have told the bbc it's "the best of both worlds" — allowing an independent trade policy and friction—free trade. but will it be credible enough to win over politicians,

the business community, and britain's european partners? lianna brinded, europe editor at quartz, joins us. good to see you. every time we meet, we seem to talk brexit, don't we? yeah. the third option, which may well be discussed in checkers on friday when the british prime minister meets with the cabinet, it sounds a bit like having your cake and eat it, it might be sounding good on paper but may not be accepted in brussels. —— chequers. well, it sounds a bit too good to be true, to be honest. it sounds like what staying in the single market would be, but just what staying in the single market would be, butjust under a different name, because it is very different to negotiate this kind of deal over the last year or so, the eu have repeatedly said that brexit is an a la ca rte repeatedly said that brexit is an a la carte menu, you cannot pick one,

all the best bits, and then all the bits that you don't like and then put that away, which is essentially what this seems like. it would be very difficult to do a new deal that is frictionless in any way unless you stayed in the soft brexit, which is staying in the single market but just not having a seat at the table any more. and this meeting on friday at the government's country retreat is seen as critical in terms of moving the brexit negotiations forward , moving the brexit negotiations forward, certainly from the european side, they say they still have not enough detail on what the uk is actually proposing and what the uk wa nts, actually proposing and what the uk wants, and this is the real issue thatis wants, and this is the real issue that is really annoying and frustrating anyone in business right now, all the different lobby groups are sort of campaigning this week. yeah, there does not seem to be a solution to everyone's wishes, basically. so the issue is that at the moment in the government, the tory party is split on exactly what

they think brexit should look like and what they want, and then outside the party you have got all the business lobby groups are asking for very specific things, that is not appease what people in the party won't either. so it is very difficult to appease the hardline brexiteers, as well as maybe the more progressive brexit tory party members, as well as what will satisfy business owners, that does not impinge these huge tariffs or huge inefficiencies to their business and also what is happening to workers. also, is not clear what a frictionless trade would look like a nyway a frictionless trade would look like anyway with regards to, with regards to services. —— with regards the goods. i mean services accounts for most of the uk economy, it is a really difficult situation to try and negotiate when there is so much detail to try and consider and then we have not even got onto the issue of the border in northern ireland. exactly, so this max fac deal that

you talked about just exactly, so this max fac deal that you talked aboutjust a moment ago, that seemed like another kind of compromise option that was presented as being frictionless in the sense that that option would remove borders in the sense that companies and businesses in trade would be able to happen without having to do physical checks each time. —— and trade. but what business owners and the iod are saying, and big business owners who have gone on record with the papers, is that all that is doing is paying more for a rebate. that still creates a kind of fiction, it may not mean a physical order. it would still mean bureaucracy and form filling in all that kind of thing, and payment. exactly. thank you, we shall keep an eye on the negotiations and bring you any news on friday's meeting of course. but now, let's take you to

malaysia next. former malaysian prime minister najib razak has been charged with breach of trust. he arrived at a kuala lumpur courthouse a few hours ago, after spending the night in a detention centre following his arrest on tuesday on corruption charges. let's go to our asia business correspondent karishma vaswani, who is following the story for us. a massive fall from grace. indeed, andi a massive fall from grace. indeed, and i think this is really underlines the current administration's focus on clamping down on corruption in malaysia. now, it has to be said that at this point, what we do understand is that the former prime minister najib razak has been charged with three cou nts razak has been charged with three counts of criminal breach of trust and one count, we understand, of abuse of power. all of this relating to the subsidiarity, a unit of the state—run investment fund, imdb, which he remembered it set up, ostensibly to develop the malaysian

economy in particular, to develop kuala lumpur, the malysian capital, into a financial hub. of course, that never happened, what happened instead was that the fund racked up the windsor dollars worth of debts, there were allegations that some of that money found its way to the prime minister's personal account. —— billions of dollars worth. allegations that he has consistently denied and to be frank, was able to sort of shrug off both political protest on the streets and any criticism that he may have faced in the media as a result of some of the laws he had implemented over the last two years, but now as a result of the new government that is in power, there has been a renewed focus on these charges, and now we have the seat how this may play out asa have the seat how this may play out as a result. thank you very much. success — the recipe that most people, especially entrepreneurs, are chasing. but more often than not,

they come across failures along the way. well, one organisation in india is trying to find a way to celebrate those failures in the hope that aspiring business men and women don't get discouraged. your career is like a rollercoaster. when you are succeeding, it goes very slow. but when you fail, you fail so fast. my partner took everything away and it was the most depressing year of my life. failure sucks, but instructs. we never had business problems, we actually have people problems. i lost —— almost lost all my savings andi i lost —— almost lost all my savings and i was literally on the street, as someone said, before i could save myself. we've had people who came onstage talk about their failures,

inspire people from their failures and things that learned from it stop right the movement is dedicated to the kinds of people, those who have failed, those who will fail, and the like. i think my venture failed because of my mistake because i believe that i trusted the wrong people at the wrong time. —— my own mistakes. because i invested not in technology, i did invest a lot in good people, i let my good people go. the project which was so important to me did not actually get launched. when you see people admitting failure in front of a large crowd, that is phenomenal.

admitting failure in front of a large crowd, that is phenomenal! feeling that is why today i realise the only thing that is important is that you need to learn from the failure because failures can always ta ke failure because failures can always take you to a negative side. interesting. let's have a look at markets than before we move on. as i mentioned in asia, it was a pretty rough night. no action today in the states, it is independence day holiday. no trading on wall street but nerves are fairly high because of course on friday, the us tariffs on some chinese goods are actually scheduled to take effect on friday, some nerves are fairly high in relation to that taking place by date, the impact it

will have. that is your business briefing. we look at what the media is discussing in a moment. but first, head teachers' leaders have written to the education secretary, damian hinds, to warn that funding shortages in england are seriously threatening school standards. our correspondent sean coughlan reports. ijust i just thought it was a real shame for the younger children as having to cut out all this stuff like the play and instrument lessons, which is cutting out also the choir and orchestra, i think it is just a shame. when i was told that the lessons were going to be cut, i

decided well, it got me really angry. it was a real shame that i had to stop because in a way, music is part of me. pickings church of england school in wolverhampton. like many schools across the country, it has many problems. —— money problems. their teacher has been issuing redundancies and worrying about £5 million repair bill. we've had to make 14 posts redundant this year, cut back on staff, and it means we have had to cut back on instrumental lessons and increase charges for those and our annual theatre production, we have had to cancel this year, and it also means that we have had to spend our money repairing holes in the roof lea ks money repairing holes in the roof leaks like this. in total, there is somewhere around 300 of these in the school building and when it rains, as we've had some heavy downpours, the water to into the corridors, it into the buckets, and brings the ceiling down. department of education says school budgets have been protected and rising to record levels, at heads leader says funding

levels, at heads leader says funding levels could become catastrophic. u nless levels could become catastrophic. unless something is done around funding, it is inevitable that standards of education are going to go down and of course because we have fewer teachers and fewer teaching assistants providing support, if you have larger class sizes, if you're cutting some of the classes that would have motivated students, of course standards are going to go down. into some schools, the cracks are literally starting to show. —— and for some schools. this is the briefing on bbc news. the headlines: fresh footage has been released of the boys trapped in a flooded cave system in thailand. they're seen to be joking, smiling and in good health — but rescue could be weeks or months away. england have claimed the last quarterfinal slot at the world cup, beating colombia on penalties. they'll now face sweden, who beat switzerland. poland's chiefjustice has said she'll defy a new law coming into force, requiring

judges to retire at 65, not 70. let's look at the stories that are making the headlines around the world. you can imagine in the uk, there is one story in town. it is all over the front pages. this is the guardian looking at that dramatic victory for england. just one of the many dramatic football front pages talking about the joy and relief of the england broke its curse of the penalty shootout. —— after england. the front page of the metro says there was never any doubt as the team progresses through to the quarter finals. in the ft, the austrian chancellor, sebastian kurtz, is warning of new border controls if germany goes through with its new transit centre plans. he says migrants could become trapped in austria while attempting to cross into germany. it is also looking at another story.

amsterdam is emerging as a winner as trading groups set up plans for europe bases in a post—brexit world. the new york times is looking at tech giants who are reportedly flocking to cambridge to set up hubs for engineers and researchers, particularly in the burgeoning field of artificial intelligence. and finally, bbc news 0nline is looking at bans on advertising junk food to kids are beginning to have a bite in the uk. cadbury, chewits and squashies have had adverts banned. with me is geraint anderson who's an author and former stock broker and columnist known as city boy.