this is the business briefing. i'm sally bundock. preparing for the worst. brussels tells eu governments to get ready for a no deal brexit, as political divisions deepen in the uk. plus, the future of transport or an expensive toy? google‘s co—founder shows off a flying car you can learn to use in an hour. and on the financial markets, investors are working through a mixed picture of corporate earnings. this has taken away some of the focus on trade tensions for now. we begin in brussels, where talks will resume on britain's exit from the european union.

uk exporters are becoming increasingly concerned about a lack of progress on a deal. and the eu is telling its members to ramp up preparations for a failure to reach one — a risk it says is growing. big pressure then on britain's new brexit secretary, dominic raab, who took over last week after david davis resigned in protest over the government's plans. today the confederation of british industry — the uk lobby group for big business — is calling for a long—term strategy to support exporters after brexit. it warns britain's export performance has been in decline now for two decades, and is far outstripped by the likes of germany. there is, of course, a lot at stake. the eu is the uk's biggest trading partner, with almost half of all uk goods and services going there last year — worth some £274 billion, or almost $360 billion. supporters of brexit argue there are huge opportunities elsewhere in the world.

exports to china have soared in the last decade, for example, to hit a record high last year. but they are still less than a 10th of what britain sells to the eu, and far less than what it sells individually to germany, france or the netherlands. on thursday, ireland's prime minister leo varadkar warned his government is now preparing for the possibility of a no deal brexit. given being instability in britain, given the turmoil in westminster, we cannot make an assumption that the withdrawal agreement will get to westminster. it is not evident or not obvious that the government of britain has a majority for any form of brexit, quite frankly, and for those reasons to be on the safe side, we as a government need to step up our preparations for a no deal brexit scenario. it is not that we expect that, but we need to step

up we expect that, but we need to step up our preparations. ross denton is trade partner at baker mckenzie, one of the world's largest international law firms. good morning. nice to see you. good morning. you and i are chatting about this on a regular basis. it would seem that the conversation todayis would seem that the conversation today is about getting ready for no deal. absolutely, ithink today is about getting ready for no deal. absolutely, i think it is really important that all parties get realfor a no deal scenario. we need to understand what the fallback options are. i think the issue is really going to be getting people to understand that it is not so easy as you can trade on wto trade rules, thatis you can trade on wto trade rules, that is the current fallback option, but it is going to be a real shock to the uk economies. a new white paper is expected to come out today, it will detail advice the member state governments to get ready for a no deal brexit, to get ready for the movement of goods across the border is, but also the movement of people. it could be chaos that could in

shoes. it could be absolutely chaos on both sides of the channel if we have no deal scenario, and you just have no deal scenario, and you just have to think about what is going to happen on day one after that, if there are going to be people queueing up on both sides of the channel, if there are going to be planes flying and so on. it is very important in that short term to actually get to deal because even if we have no deal at the very sort of end of it, we have to prepare what comes end of it, we have to prepare what co m es after end of it, we have to prepare what comes after it. we are going to have to have some kind of trading relationship, so what does that look like? it is interesting because actually yesterday, we have a story about companies like astrazeneca are already building up stock piles of drugs so that they are prepared for the destruction that may well follow if we are to crash out of the eu next year. dominic raab today, what are your first thoughts on his meeting with michelle barnier?” think it will be very interesting, he is going in being betrayed as the face of the chaos behind all this. he is going to have a really, really tough day trying to understand

exactly what the commissioner and eu are thinking on this. —— michel. but i think if the commissioner is sensible, he will accept this as acceptable, even if the framework is acceptable, even if the framework is a long way from being settled. there isa a long way from being settled. there is a break on the political crisis that seems to be going from bad to worse, but in the meantime negotiations will continue in the meantime between the uk and brussels. they cannot stop over the summer brussels. they cannot stop over the summer because of course, the timetable is so short now are not only do we have to try and get a deal with muscles but the member state governments, it has to get through european parliament and then the different member state governments have said yes or to it. absolutely right, but brussels does love its august vacation. so you don't think it will happen is yellow well, there will be dropping pace but it will have to continue for the reasons that you have said, but i think that there will be a summer break where people will reflect and

there may be some negotiations behind the scenes in a less sort of public way of. -- well, for the reasons. thank you very much for coming in this morning and giving us your take on this. it is just a very difficult, complicated story unpack. we will have more on this in our news briefing because as you can imagine, the press is talking through all the latest detail. but now, let's discuss this flying car. many of you have been in touch over whether it is a good idea or not. now, if you are the co—founder of google and worth $50 billion, what do you spend your money on? well, of course, a flying car. kitty hawk is a startup company backed by google's larry page. they invited our technology reporter to their test site outside las vegas to find out more. so here it is, the kitty hawk and

lyre. it is very, very simple, j'ust two controls, one of our tutor and once the direction of where can go. around me, you will see their ten propellers, ten motors that keep this thing in the air. i guess you could say it is just a big drone that a human being could fit in. right now, they limit the speed to around six miles an hour. the battery life will keep it going for around 20 minutes. all of that will improve in time. it certainly can go faster right now butjust to be cautious, they are keeping an amount x miles in an hour. in terms of when you can get one of these, the company is taking pre— orders right now. they won't tell us how much is going to cost that they say it is going to cost that they say it is going to cost that they say it is going to be can parable to a high end electrical car, so the tens of thousands of dollars i guess you could say. so what we are sitting

m, could say. so what we are sitting in, many people think, is a glimpse of the future. they say their goal is to eliminate traffic and that is a goal i think many of us can get behind. whether it will be in one of these, that remains to be seen, but it is certainly a very, very interesting, a futuristic concept. the goal to eliminate traffic or is it just moving traffic the goal to eliminate traffic or is itjust moving traffic elsewhere? you have been in about this. you can see the conversation going on and have a look at the debate. now let's brief you on some other business stories. ryanair has cancelled up to 600 flights over two days next week because of a strike by cabin crew in belgium, portugal and spain. it will affect almost 50,000 passengers who had booked to fly to or from those countries on wednesday 25july and thursday 26 july. ryanair says all those affected have already been informed by email or text message. google's preparing to appeal

a record $5 billion eu fine over its android mobile operating system. the european commission says the firm used it to illegally "cement its dominant position" in search. analysts say the fine is a mere two weeks' worth of revenue for the tech giant, which also has cash reserves of more than $100 billion. the boss of premier foods — which owns brands including mr kipling, ambrosia and 0xo — has survived a bid to oust him at the company's annual meeting. 41% of shareholders voted against gavin darby's reelection. activist hedge fund 0asis management, the firm's second biggest shareholder, had called for him to resign, claiming he'd destroyed shareholder value by rejecting a us takeover bid in 2016. what's trending in the business news today? 0n the wall street journal,

europe's google decision brings new calls for us action. it talks about that story. regulators on the other side of the atlantic may now be under pressure to rein in the power of the tech giant. 0n bloomberg, jeff bezos becomes the richest man in modern history, topping $150 billion. hopefully we can move onto that. and on quartz, daughters of working mothers grow up to be just as happy as those of stay—at—home moms. they also earn more, according to a new academic study. we can't seem to be able to move on our graphics for that, so we shall now look at market really quickly, and those graphics are working. so thatis and those graphics are working. so that is good. so you can see a mixed picture in asia, it is all about the earnings that are coming through. we have lots of companies coming out with their latest profits or news of losses. so it is a mixed picture, i will see you soon. it's been a record year

for british book sales — that according to the latest figures released for the uk's publishing industry. it's now worth £5.7 billion according to the publishers' association. and despite dire warnings, the sale of the printed word is still well outstripping that of ebooks. lizo mzimba has this report. jamie 0liver‘s bestseller 2017's most popular book. it helped the british publishing industry to reach a record—breaking year. sales of paperbacks are up, with hardback fiction in particular seeing a rise of almost a third thanks in part the new thrillers from authors like dan brown and the child. readers fundamentally still value the printed word. —— books. publishers

have invented huge amounts of time, effort, resource into making sure that books are still really attractive, that we want to buy them, and also they limit us very much to giving gifts as well. is the third year in a row that physical book sales have increased. while over the same period, digital book sales have decreased, demonstrating that for the time being, fears from some that the books might soon replace traditional book appear to be unfounded. the income from audio books rose by 25%, but the biggest inhibitor to the latest record—breaking figures as international trade. —— ebooks. record—breaking figures as internationaltrade. —— ebooks. most of the british publishing industry's income, some 60% comes from overseas. physical book sales to austral asia are a 1a%, while sales to the rest of europe, the industry's is market, have increased toa industry's is market, have increased to a figure approaching £0.5

billion. that story and more will be coming up at 6am on breakfast withjon kay and naga munchetty. they will have all the top news, business and sport for you. this is the briefing. the headlines: donald trump says he holds vladimir putin personally responsible for russian interference in the 2016 us presidential election. sweden's calling for international help as it battles to contain at least a0 raging wildfires, stretching from the arctic circle to the baltic sea. some of the boys saved from a flooded cave in thailand have taken part in a religious ceremony, praying for their rescuers. let's look at the stories that are making the headlines in the media today. brexit dominates again. we begin with the independent‘s look at the direction of brexit negotiations.

this story looks at former foreign secretary borisjohnson‘s criticisms of theresa may's plan, which he calls "a democratic disaster". if you look at the ft, it is looking at the new brexit secretary, the replacement to david davis is on his first on—the—job visit to brussels today. the ft says dominic raab is also set to inundate businesses and households with technical advice on how to prepare for a no deal scenario. other stories now. the washington post has quite a scary story about the use of 3d printers to make guns in the us. gun advocates say sharing the blueprints online would mean the government could no longer effectively ban them as people could make their guns at home. independent 0nline, where a report finds meat and dairy companies are on track to be the world's biggest contributors to climate change due to emissions. on top of that, companies are being

secretive about their pollution. and finally on bbc news, just in time for the start of summer holidays, some aviation woes. ryanair cancels up to 600 flights affecting almost 50,000 passengers while easyjet claims industrial action by french air traffic controllers has cost it £25 million. so let's begin. with me is financial commentator david buik. david, let's get stuck in. let's go. so, the independent, also other papers, the telegraph and others focus on what borisjohnson had to say, we were all waiting for his big speech.