this is business live from bbc news with sally bundock and ben thompson. 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. live from london, that's our top story on wednesday the 4th ofjuly. more pressure is heaped on prime minister theresa may as she attempts to win cabinet support for a third "best of both worlds" option on a future customs union. we talk you through the options. also in the programme, security concerns for samsung. the tech giant says it's investigating reports some of its galaxy smartphones are spontaneously sending private photos to random users. and it's independence day in the us,

meaning a day off on wall street. this is how european markets are trading right now. we'll talk you through the winners and losers. and is there life left in the high street? we meet the shop owner who says it's about how you sell, not what or where, and says retailers need to work harder to keep customers coming back. and as samsung investigates the latest bug, we want to know, how safe is your smartphone? do you trust it to keep your personal information safe? let us know, just use #bbcbizlive. welcome to the programme. it is packed, as usual, but get in touch, we will share your comments later. we start with look at the uk's brexit negotiations with the europe union. the british government has yet to agree on exactly what a future trade relationship will look like, and that lack of clarity

is beginning to frustrate both sides on the negotiating table as well as the companies who do business across the region. so what options are 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. 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. institute of directors members say this is not frictionless enough. and 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 the politicians, the business community, and britain's european partners?? with me is allie renison,

head of europe and trade policy at the institute of directors. welcome to business live, we will come onto the third option in just the second, because there is a lot to discuss there, but you have put a study out of business leaders looking at what they want as far as these negotiations are concerned, and no surprise they want clarity and no surprise they want clarity and free trade. it was interesting that when we surveyed them and said, do you want something that relies on existing technology simplifications but assumes a certain level of friction, or do you want something that totally negates the need for new customs declarations and processes , new customs declarations and processes, the vast majority by more than 2—1 said they wanted the latter. even companies who trade internationally were even more emphatic that they wanted to avoid new processes for trade. how likely are they to get it? it depends, the

outcome is the most important thing for business, but we need to see more engagement with businesses about what the options are, because i think there is some, you know, encouragement for the idea of a customs partnership if it removes the need for these processes, but we do not know how it would work, so there needs to be more practical testing to see what is feasible. at the front up their minds is march 2019, very closely approaching date, they have got to start making plans to deal with it, and there are many options, and they just to deal with it, and there are many options, and theyjust want an options, and theyjust want an option that they can start planning for. that is essentially the difficulty, businesses are saying, we will cope, wejust difficulty, businesses are saying, we will cope, we just need to know what is happening. exactly, and the first big milestone, long overdue, is the white paper coming out next week to figure out what the government is proposing to the eu, but also important to stress that when it comes to tariffs, you can model that. you cannot model customs disruptions in terms of delaying

times to get goods moved, and that is the difficult thing to plan for. let's talk about the third option, independent trade am a friction free trade — this is the epitome of having your cake and eating it, isn't it? we have been told that is not going to happen, where is this option coming from? not going to happen, where is this option coming from ?|j not going to happen, where is this option coming from? i think it is saying, effectively, the devil will be in the detail. we would still need to make use of some facilitation is but there would be closer alignment to eu customs processes than envisaged under max fac, but the devil will be in the detail. we will hopefully get that detail. we will hopefully get that detail shortly, good to see you, thank you very much, allie renison. let's take a look at some of the other stories making the news. former malaysian prime minister najib razak has been charged with corruption, two months after he was voted out of office. he faces three counts of criminal breach of trust and one count of abuse of power. he pleaded not guilty to all counts and has been released on bail. mr najib has been accused of pocketing millions from the state development fund 1mdb, which he set up.

google has confirmed that private emails sent and received by gmail users can sometimes be read by third—party app developers but not machines. people who have connected third—party apps to their accounts may have unwittingly given staff permission to read their messages. gmail is the world's most popular email service with 1.4 billion users. the indian government has sent out a stern warning to whatsapp asking it to immediately stop the spread of "irresponsible and explosive messages filled with rumours and provocation. " according to reports, dozens of people have been killed over the last one year in ten different states by lynch mobs, mobilised by rumours of child kidnapping spread over the facebook—owned messaging platform. us authorities say they will allow chinese tech giant zte to temporarily restart some

of their business activities within the country. zte was hit with a seven—year ban earlier this year, for violating trade sanctions with iran and north korea. however, the firm recently paid a $1 billion fine as part of its efforts to resume business activities in the us. first, katie silver is in singapore. katie, you know, zte, one minute they are doing well with regards to they are doing well with regards to the us, the next minute band, off and on all the time, what is the latest? it is, so the latest is u nfortu nately two days latest? it is, so the latest is unfortunately two days old, but it only came to light today, this order was issued two days ago, and it is important to mention the overall ban is still there, it won't fix all the issues. they have been given a limited reprieve, so basically, for the next month, they will be able to

conduct some operations in the us, and this really pertains to operate prior to this april date when the trouble really started for zte. so it is maintaining the handsets and networks that are already there, but to do this they must fulfil these requirements, the $1 billion penalty and changing their management team. so the troubles are far from over for zte, but they are hopeful for the next month at least they will be able to maintain some of their operations. all right, katie, thank you for the latest on zte. let's look at the financial markets, in asia,japan and let's look at the financial markets, in asia, japan and hong kong falling again, it has been a theme throughout this week, and it follows losses overnight on wall street, you can see the dowjones down by 0.5%, the same old issues dogging investors, concerned about the trade war, tariffs on some chinese goods taking affect on friday of this

week. quite a terms of volumes, wall street is not opening today for the independence day holiday, so muted trade ahead of that. let's look at europe, london is down by a third, elsewhere companies coming through with earnings which have not been exciting, sainsbury‘s is one in the uk, for example, sales not very exciting at all at the supermarket chain. we will talk you through that, but let's return to trade. investors are watching this extremely closely. trade is top of the agenda in europe and the us. dutch prime minister mark rutte was in washington and had some straight talk for president trump during a press conference, take a look. we are very close to making some very good trade deals. fair trade deals — i didn't want to say good, i want to say fair. fair trade deals for our taxpayers and for our workers and our farmers. and a lot of good things are happening. i think the eu, we're going to be meeting with them fairly soon, and we want to see if they can work something out. that'll be good, and if we do work it out, that'll be positive,

and if we don't, it'll be positive also. no! we just think about those cars that are pouring in here. it's not positive — we have to work something out. but it'll be positive. but again, mr prime minister, thank you very much for being here. it's good to be here. so blunt talk from mike ruddock, that dutch blu ntness, so blunt talk from mike ruddock, that dutch bluntness, i can say that, i am a quarter dutch! —— mark rutte. jeremy thomson—cook is chief economist at world first. we have seen so many of those press conference things where president trump says everything is fine, we're coming up with the deal, but mark rutte said, you know what, it is not like that. nice for someone to say there is a lot of work that needs to be done, because occasionally bluster is overtaken by detail, and

we are seeing this between the us and china, the us and europe, saying everything will be fine and this is how we see our dream scenario working out, but the civil servants behind the process actually have to work for it. the netherlands is one of the most keenly free trading european countries, france as some tariff arrangements around car manufacturers, germany around its car manufacturers, spain and italy on food, but the dutch don't tend to have that, so it is really up against protectionism of trump. have that, so it is really up against protectionism of trumpm is not often we talk about the dutch economy, stable, steady, just get on with things. it gets on with things in the aftermath of the global financial crisis, huge hit on its banking sector, abn amro and people like that, so part of the northern bloc of europe who look after this government constraint and low inflation. what else are you looking at this week, given the fact that

there is independence day, a funny week? completely dead in the us, everything will be quite thing down from lunchtime, shame there are no world cup matches on this afternoon! but by the end of the week, more ta riffs but by the end of the week, more tariffs from the us against chinese goods, and the chinese reaction to that, they say they will not use the currency, but it is down 4% on the month, its worst performance in a year, so month, its worst performance in a year, so are we month, its worst performance in a year, so are we starting to see pressure starts to tell on china and other asian supply lines? you can watch the tennis this afternoon. there is tennis! not before cu res there is tennis! not before cures comeback to talk about the newspaper stories. we will be talking about that samsung story as well, sending photos without your permission. private photos, super scary! still to come, if you build it, they will come — or will they? we'll meet one children's clothing retailer that's trying to revive the high—street hype and refuses to have a website. you're with business live from bbc news. supermarket giant sainsbury‘s

says like—for—like sales slowed in the first quarter, reporting just a 0.2% rise in sales. that's down sharply from the near 1% rise it reported on the three months before. chief executive mike coupe said that the market remains competitive. let's speak to laith khalaf is from hargreves lansdown, he joins us now from bristol. you have looked at the numbers in more detail, what is it looking like at the moment? well, as you say, you know, fairly lacklustre topline growth, and if you consider the period we are looking at, we are looking at may and june

predominantly, the royal wedding, good weather, the beginning of the world cup as well, which means shoppers walking out of the shots with tvs and barbecues, so that probably flatters the numbers a little bit. but they were above city expectations, and you can see that in the rise in the share price this morning. in terms of sainsbury's, it is now working with argos, its bought argos, that is all happening, but with tesco talking about a strategic alignment with carrefour, what do sainsbury's need to do now? tough times in the uk grocery market, online sales gathering pace, and as you say, argos has been integrated into sainsbury's, which is going well, and now sainsbury's is going well, and now sainsbury's is looking to merge with undo, that is looking to merge with undo, that is with the competition commission at the moment, but that will allow to exercise more muscle in the market and roll—out argos stores

within the asda estate, a tantalising prospect. much more on all the results that are around this morning on the business live page, including news that uber could be looking at a deal with careem, its middle east and rear —— middle eastern rival. it just middle east and rear —— middle eastern rival. itjust got its licence back to work in london, but it is now talking about a deal with careem, it could take a majority sta ke, careem, it could take a majority stake, a firm that is based in dubai. much more detail there on the business live page. your're watching business live, our top story: as the uk government prepares to unveil its latest proposal in a future customs deal, businesses overwhelming say they want a frictionless border. we will hopefully get some detail

about that, this talk of a third way. now, if you've got kids, you'll know thatjust dressing them is an expensive business. they grow out of their new clothes almost as soon as you've bought them. it's little wonder, then, that the global childrenswear market was worth a staggering $203 billion in 2016. but many established clothing retailers are suffering from the shift from bricks and mortar to online. internet sales now account for 24% of uk fashion spending. as in other parts of europe, that's made it harderfor high street stores to compete because of their higher costs. in the uk, that helped the high streets record a net loss of more than 1,700 stores last year. frances bishop is founder of the pud store. and i am told she's a real

evangelist when it comes to being on the high street, welcome to business live. thank you. tell us about the pud store, because you are trying to walk a path that others are saying is not right, by any means, including your bank manager. absolutely, my bank manager says, fran, you are insane for not wanting a website, that you stand up for the high street, but i am standing up for what i believe in, that high streets are community hubs of towns and they should be protected. yes, they need developing, we need new ideas, we need change there, but what i am trying to do is vitally important, trying to make a return to the traditional retail values of the high street. it is easy for us to suggest that, you know, if we make and experience in a store, great, people will come, but it is easier said than done, because a lot of retailers are very lazy, they just say, come and buy, and people don't want to do. yeah, at the end

of the day, people work hard for their money, and if they are spending £150 or £10 in your store, you should make them feel special, caird undervalued, and that is my ethos. big stores are far too complacent. —— cared and valued. my staff love their jobs, complacent. —— cared and valued. my staff love theirjobs, they have a high retention rate, they are passionate about their jobs, high retention rate, they are passionate about theirjobs, and customers are too, and we are growing a really nice positive advice. i have just growing a really nice positive advice. i havejust seen growing a really nice positive advice. i have just seen a growing a really nice positive advice. i havejust seen a picture, that probably sums up what the business is about! it is fun. and that results in us doing well. you say it is fun, you have got two shops on the high street, doncaster, is that right? and it is a top city centre, i mean, most retailers are struggling to stay open, you have chosen a place where many shops

around you are lying empty. yeah, absolutely, the shop next door to me closed three weeks ago, that was a real shame. i would closed three weeks ago, that was a real shame. iwould be closed three weeks ago, that was a real shame. i would be naive to say that it real shame. i would be naive to say thatitis real shame. i would be naive to say that it is not difficult, i worked tirelessly day in, day out, to get people through my doors, but it is the sense of positivity that i am trying to share with my customers and the wider community, that makes people keep coming back to me and my business. so from the ground up, if another retailer is watching this, what is your advice to them? how would you make the bricks and mortar stores attractive again? why would i wa nt to stores attractive again? why would i want to come through the doors? you need exceptional product knowledge. anywhere can sell a children's dress, you have to sell the best you can at the best possible price with the best possible service. it is about standing out, anybody can sell, it is about how you sell and deliver that experience. if somebody says, i have found this on amazon for £5 cheaper, and they will

deliver it to my front door, how do you compete with that? it is very difficult, i am under no illusion, we are competitively priced because we are competitively priced because we stuck past season's goods, i am not totally with that market, but you have to offer the full package, you have to offer the full package, you have to be competitive enough in your nature to understand what customers are paying for. people don't mind paying for the whole package service providing they get that full experience, essentially. 0f that full experience, essentially. of course, we can see clearly that you are super passionate about the high street, but when it comes to online presence, many say you are mad not to have a website, but you do utilise social media have lead to expand your brand, to tell people what is on sale so that people who do not live in doncaster get your products. it is sensational what we have achieved, people come from around the country direct into our store. we had a lady drive from cambridge to our new store within three hours of us posting that we

we re three hours of us posting that we were on sale. and so it is notjust about putting a picture up and saying, about putting a picture up and by about putting a picture up and sa ' about putting a picture up and saying, by this? it is about telling the story of the brand through like videos, i have got quite an eccentric personality, as i am sure you have gathered, and that smile is, you know, what we try to get across on camera and via facebook like videos, we use that every day and get 8000 or 9000 viewers at any one time, and they are literally buying on that video. customers are calling to order. tv shopping! it is gbc for kids! people are so engaged, it makes them want to visit the store and support the whole business. fran, we could talk all day, it is really interesting, thank you for coming in, good luck with it, we talk so often about the struggles on the high street,

shopping models around the world, but there is life in bricks and mortar if you take on some of that advice from fran. here is how to be in touch, we'll see when the moment. stay up to date with all the day's business news as it happens on the bbc‘s business live page. there's insight and analysis from our team of editors right around the globe, and we want to hear from you. get involved on the bbc‘s business live web page at bbc.com/business. on twitter, we're @bbcbusiness, and you can find us on facebook at bbc money. business live on tv and online — what you need to know when you need to know. jeremy is back to look through the papers. just following on from our previous test, i know you are listening to some of that, a story that is on the bbc site, a warning about town centres becoming ghost towns, and it is not just centres becoming ghost towns, and it is notjust in the uk, all over the world we are seeing that move to online shopping, and it means that traditional stores are really

struggling. yeah, constant battle between bricks and mortar and e—commerce, which is offering everything you want cheaper, easier, free returns and delivery, and this fella, the former head of iceland focus diy, launched a report to talk about how towns and high street are being hollowed out. if you're retail space, certainly in london, is being turned into something experiential, you can't drink a pint on the internet or get a haircut on the internet, so whether we are seeing a shift into something more experiential and hands—on, if it is that customer service as well, that is the new high street, as opposed to it being hollowed out. this story about samsung, investigating reports that some of its galaxy models have been able to randomly send private photographs to other users, is a shocking story, something that, you

know, aged a day or so ago. users are reporting that, overnight, either one, two or the entire camera roll is being sent to random people, all their wives, the maybe issues there, of course! what are you suggesting?! don't go there! lie dodgy might find out what you got over for her birthday, that kind of thing! everyone is very keen on data security, gdpr, that kind of thing, so security, gdpr, that kind of thing, so whether we are starting to see samsung have another issue around hardware. and it absolutely relies on us hardware. and it absolutely relies on us trusting those devices, because we have our lives on our phones, you have a password to login, whatever biometric data to login, whatever biometric data to login, but if there is something relatively simple, potentially your life could be exposed. yeah,, and this may not be malicious, just a softwa re this may not be malicious, just a software error where something has gone wrong, and it is unlucky that it has happened to samsung after their hardware issues in the past,

but if it is notjust photos, confidential e—mails, anything else like that, we have a problem. this is what you had to say, old—fashioned comedy says it is softwa re old—fashioned comedy says it is software rushed to market, it needs to be tested. not thisjeremy, anotherjeremy says, i don't trust anything connected to the internet if it has a camera and a microphone. somebody says you cannot blame the bones, we put the trust in the companies. much more on your comments if you search for our hashtag, thank you for coming in, jeremy. thank you for your company. we will do it all again very soon. i'm off tomorrow. i will be here, i will see you, bye— bye. hello there. we have a few subtle

changes in the weather today. across southern parts of wales and southern england, more cloud around this morning, and the chance of some showers as well. for most of us a dry day with sunshine, this cloud thrown up by some low pressure, a bit of cloud in the north—east, but elsewhere a sunny start, and that sunshine continues through northern ireland, much of scotland, north—west england, north wales, but cloud lingering in the north—east of england and across the far south again, the cloud continuing into the afternoon. this area of low pressure, it will throw up showers across south—western parts of england, but elsewhere across southern counties there is the risk of some showers as we go through the

afternoon. fairly well isolated, they will move through, but it means, actually, for the wimbledon area, the wrist today of some showers. the risk is only about 20-25%, but still showers. the risk is only about 20—25%, but still there, temperatures taking a knock because of that cloud, eyes today of 2a degrees across the south. the highest temperatures will be in the north midlands, north east wales, the west of northern ireland, 26 possible here, coolerfurther north and east. as we go into thursday, we have this weather front moving its way in from the north, a cold front, and that means behind it we will start to import some fresh air coming in from the north—west, for scotland, northern ireland, increasing amounts of cloud during thursday. elsewhere, though, for england and wales, more sunshine compare to today. still the risk of one 01’ compare to today. still the risk of one or two showers across the south, but heat starting to build up again,

more humid weather moving in across the south, 29, perhaps 30 celsius here, the high 20s across northern areas. scotland and northern ireland, a fresher feel, areas. scotland and northern ireland, a fresherfeel, perhaps not even getting up to 20 celsius. into the weekend, the temperatures will start to rise again, the mid 20s, plenty of dry and bright weather, lots of mostly sunny weather across southern parts as well, and temperatures will continue to rise, the mid to high 20s. bye—bye. hello, it's wednesday, it's 9 o'clock, i'm victoria derbyshire, welcome to the programme. after a night of drama, aggro and a thrilling penalty shoot out, england are through to the quarter finals of the world cup.. yes! england are world cup quarterfinalists again! and they've done it on penalties! their world cupjourney continues —

they'll face sweden on saturday. mps are calling for prostitution websites to be banned — they say they're fuelling a growth in sexual exploitation and the trafficking of women and they're also asking whether the buying of sex should be made illegal. tell us your views. former football coach george ormond will be sentenced today for abusing boys as young as 11 over a period of 25 years.