this is the business briefing. i'm sally bundock. president trump signs his first trade pact with south korea, describing it as "a very big deal". we weigh it up. the two co—founders of the photo sharing site instagram say they're quitting. we'll be live to san francisco for the details. non—financial markets, another mixed day in asia. traders have returned to trade from holidays injapan and china. president trump has signed a revised trade pact with south korea. it's the first such deal finalised by mr trump, who's promised to overhaul america's trade relationships. the president's hailed

the changes as a very big deal. many analysts though say the revisions to the 2012 agreement are relatively modest. so south korea and the us are major trading partners, with trade in goods and services worth just over $141; billion every year. under the new terms, south korea's agreed to exempt 50,00 cars per us manufacturer each year from complying with local safety requirements — that's about double the current level. it also extends a 25% us tariff on south korean trucks, which had been due to expire in three years. so that's the win for the us. the us has agreed to exempt the majority of south korean steel from the tariffs, that president trump announced in march. kim gittleson in new york says the deal has been described as largely cosmetic.

shockingly, this is the first trade deal negotiated by the trump administration, which is perhaps better known for whipping up trade pacts, as opposed to signing new ones. that is because when it comes to this particular trade deal with south korea, well, it was one that was easy for the trump administration to win. that is because as one analyst said, this is a change that is largely cosmetic. tinkering with a deal that had been agreed between the us and south korea. the terms of the trade deal a similarto korea. the terms of the trade deal a similar to the ones that were announced earlier this year in march and they had to do with us car imports into south korea, as well as still quotas when it comes to south korean exports. the key thing is this is unlikely to significantly increase the us trade deficit with south korea, but it does provide the trump administration an easy win

when it comes to its seemingly unending trade battles with the rest of the world. doug mcwilliams is the deputy chair at the centre for economics and business research. good morning. good morning. so interesting that the us and south korea are tweaking the 2012 deal, as it were, and president trump is describing it as a very big deal. give us your take. well, i think he is exaggerating his importance, but he isa is exaggerating his importance, but he is a politician so you can't entirely blame him for that. it looks like a fairly modest tweet to what existed. —— tweak to what existed. despite the fire and brimstone and all the talk, actually when it comes down to talking, as long as he feels he can stick his name on it, he is prepared to do a deal. and that is quite good news because there are much better deals that are going to have to be made with china and with the eu. absolutely, and talking about the eu, we have got the eu trade

commissioner in the us. shares of talking to reporters on the sidelines of the united nations general assembly, she is expected to meet with the us trade representative robert lighthizer. —— she is sort of talking to reporters. we were with that, because that is a sort of ongoing situation? there is meant to be a much bigger discussion with lots of officials and so on and obviously, this engagement will not be such an easy deal as the korean w011 be such an easy deal as the korean won because they will be many more issues and that is bigger and so on. but what we have seen suggests that there are some easy winds, trump thinks that the reason americans don't sell so many goods abroad is because of unfettered rating practices. 0n the whole, that is not the case. it is just that a lot of american products are not hugely competitive. where they are competitive, in areas like high—tech, they actually do sell quite a lot, and it is relatively

easy to handle local safety rules on things like that. as i think that provided we make, they say we of course, by the time this goes on, we are going to be an exit written and we are not going to be part of that particular deal but we will probably have a similar one, but provided we give him some cheap winds on allowing us goods to come into our market is, that will be something he will be prepared to accept. —— wins. whatever thoughts on the us and china? where are we at that particular trade spat? that is a big one because he chinese are keen on a lot of the restrictions that stop goods elsewhere coming into the country, and there insistence on intellectual property being transferred to example is something quite tough and sort of breaks with oui’ quite tough and sort of breaks with our own principles and the way we do

things. citing that the us china deal, they are much more important than the others for a start and secondly, they are going to be a lot more difficult. —— so i think. but at least it suggests we are not com pletely at least it suggests we are not completely in chaos. thank you so much. we appreciate your insight so early in the morning. it is quite a big week this week. the co—founders of the social networking site instagram have both resigned. kevin systrom and mike krieger started the image sharing site in 2010, and continued to run the service after it was bought by facebook in 2012. 0ur north america technology reporter is in san francisco. why are they going? that is a very good question, the rumour is that for some time now there has been increased tension between kevin systrom and mo krieger and the ——

the cofounders, and while the social network has had a bit of stagnation, some troubles as we know all the while in the past year, instagram is actually been a roaring success, they have been particularly popular with young users, compared to the main facebook app. and so with that has come something of added pressure i guess you could say from facebook to monetise instagram much more aggressively, so more ads, more features, more things that are going to make people see advertising and instagram and we are told, we understand that that created a lot of tension between instagram's founders and facebook because instagram's founders are always very big on saying how simple the app should be and how straightforward it should be and how straightforward it should be. so that is the best theory right now as to why they may have decided to take this step. and facebook saying it officially we are going to keep an eye on how these to

get on, we are intrigued to see what they do next. as you say, i guess in they do next. as you say, i guess in the days ahead, we will get more detail as to why they are actually living but people will keep an eye on those two, won't they? yes, they certainly will. i saw someone on twitter said they could be right the names on a napkin and investor would give them $100 million for it, so they are held in very, very high regard in silicon valley certainly, andi regard in silicon valley certainly, and i think what will be perhaps even more interesting will be who ta kes even more interesting will be who takes over the running of instagram because instagram is not a division of facebook as such, it is seen as almost like a separate company within facebook, where facebook was the parent firm. and i think mark zuckerberg's choice over who could run instagram next could be pivotal to our popular instagram will be in the future, particularly if it sta rts the future, particularly if it starts to go even closer to some of the things that we see on the facebook newsfeed when it comes to monetisation. it is a very, very

interesting time to instagram, i imagine some of the uses of instagram could be quite worried actually that these cofounders are living. thank you so much. —— leaving. now let's brief you on some other business stories. ford is looking at speeding up plans to build more of its cars in china, amid the growing trade war with the us. the firm's vice president for operations says the dispute has made us exports less attractive, and that he does not see any easy resolution for the us and china. more than $650 million was stolen from british bank customers in the first half of this year. that's £500 million. industry group uk finance says almost $200 million was stolen in so—called push payment scams — where user are tricked into sending money to another account — while the rest was unauthorised fraud.

and that is our twitter conversation today in, have you been a victim of fraud in that sense? what happened? have you got some top tips? we can share some of those with you later. some people have been sharing their stories of what to do to protect themselves in future. these markets are open at the moment and slightly higher. i will see you soon. ina

in a moment, the news briefing. —— newsbriefing. but first, domestic abuse victims and their children in england and wales are being put at risk because offenders are being allowed to drift through their sentences, according to a report by the probation watchdog. the inspectorate of probation found that officers had "unmanageable" workloads and held infrequent meetings with offenders in public places. our home affairs correspondent june kelly reports. police in northumbria responding to a report of domestic violence. those convicted of such crimes and up on probation in the community, either after a ll probation in the community, either after all instead of a jail term. but many of the private companies which have been given thejob but many of the private companies which have been given the job of rehabilitating them are failing. that is the conclusion of the day's report by the probation watchdog. offenders are left to effectively drift through their privation supervision period, they left to go back to live with people that they have abused, to threaten those

people, to intimidate and the abuse those people and that should not be happening. —— probation. those people and that should not be happening. -- probation. at this rehabilitation centre in merseyside, they are having successes. jamie has received the help he needed to turn around what was verbally abusive relationship with his partner. around what was verbally abusive relationship with his partnerlj relationship with his partner.|j could have potentially not even had my children. i did not want my boys to go up, and i did not want my girls to go up to think it was ok for men to speak to them like that stop right the report found that staff in general have unmanageable workloads and as a result in 70% of cases, worked at the tate victims and children was not called in. under 20% of home visits had taken place and only 27% of eligible offenders had been referred to a specialist programme aimed at stopping people abusing. coming up at 6am on

breakfast, dan walker and louise minchin will have all the day's news, business and sport. this is the briefing from bbc news. the latest headlines: president trump's choice for supreme courtjustice, brett kavanaugh, has been forced to defend himself again in public, against accusations of sexual assault. judge kavanaugh insisted he was completely innocent and that he would not step aside. the presidnet says he hopes the confirmation will happen quickly. britain's opposition labour party is to debate a shift in its brexit policy, that keeps open the option of it campaigning for a new public vote on whether to leave the european union. it would come into play if the governing conservatives fail to get their own brexit plan through parliament. donald trump says a new summit with kim jong—un will probably happen "pretty soon". the president was speaking after receiving a personal message from the north korean leader — including a promise to dismantle a missile site, and a nuclear complex — if the united states took "corresponding action". now it's time to look at the stories

that are making the headlines in the media across the world. we begin with the arab news, and russia, who is to supply syria's assad regime with sophisticated s—300 air—defense missile systems. the us has reacted by warning the move could cause a "significant escalation" of the syrian conflict. -- un. the ft looks at how some us companies are on a dealmaking spree totalling more than $50 billion. this has led to them being able to swallow up their european rivals in a series of industry changing mergers. the new york times reports us global fashion giant michael kors is set to buy legendary italian fashion house versace for $2 billion. the sale would mark the end of independence for one of the most prominent stand—alone couture brands, amid a wave of consolidation within the industry. the gulf news focuses on rising brent crude oil prices, which are currently at a four—year high.

the article goes on to say that prices could hit $90 a barrel by december and pass the $100 mark in early 2019. and finally, are you a stickler for current scrabble rules on acceptable words or are you not ok with popular informal language? scrabble players are calling for more american slang to be added to the dictionary to ease fears that the game is unpopular among the young. words like "twerk" and "ew" and "ok" are now being asked to be included. two letter words. you won't get much for that. with me is maike currie, who's investment director