this is business live from bbc news with ben thompson and sally bundock. a deal — in principal. the uk agrees a trade deal with south korea but can't finalise the details until after brexit. live from london, that's our top story on monday the 10th ofjune. as the contest for britain's next prime minister officially begins, the uk's international trade secretary signs a deal with south korea in a bid to keep goods moving after brexit. we will have the details.

also in the programme. machines of war — the weapons—maker raytheon and aeronautics firm united technologies agree a mega merger creating an defence giant worth more than $100 billion. european markets look like this getting a boost after the us reaches a deal to avoid imposing tariffs on mexico, a sigh of relief from investors. and do you need an extra pair of hands in the office? we'll be taking a look at a desktop robot designed to boost productivity at work. the business of sleep — scientists from the uk and australia say they have found the secrets of adjusting your body clock. today we want to know what are your top tips for a good night's sleep? let us know, just use #bbcbizlive. hello and welcome to business live. welcome to the programme.

we start with trade. the uk and south korea have signed an in principle free trade agreement that seeks to maintain existing trade arrangements post—brexit. the uk cannot sign a formal agreement until it leaves the eu at the end of october. the total trading relationship between the two countries is worth well over $13 billion dollars. the deal includes keeping zero—tariffs on south korean exports including cars and car parts after britain leaves the eu. the uk is south korea's second largest trading partner among eu members, and the asian nation's 18th largest trading partner. here's the uk's international trade secretary liam fox after signed the deal with his south korean counterpart in seoul. what it means is is that if britain leaves the european union without a deal, we get continuity in the trading arrangements that we currently have. so, businesses can plan for both trade

and investment with confidence. if we do get a deal with the european union, what this means is we have now a springboard to a future trade agreement that could be more ambitious than the one that korea currently has with the european union. so, for both of us, it is forward—looking, ambitious and confident. let's see how forward—looking and ambitious it might be. with us now is christophe bondy, a former trade negotiator, he's now with the law firm cooley. good to see you. clearly liam fox is busy hard at work trying to get as many trade deals in place in principle for when the uk leaves the european union. what do you make of this announcement today? well, as we say, the devil is in the details and the notion of in principle is where the notion of in principle is where the warning bells should go off because at the end of the day what matters is what is the content of that agreement going forward? it would be a good thing to maintain a rollover and not have tariffs after

a hard brexit but the fact this cannot even be enacted until the uk leaves the eu means that there is in any leaves the eu means that there is in a ny eve nt leaves the eu means that there is in any event going to be a gap. don't forget this is a tiny percentage of the uk's global trade. so it is kind of like the biggest part of the uk is obviously the rest of the eu, 50%, so the guy who lost the biggest file at the firm running in and saying i lost the biggest file but i think one of our smaller customers is going to continue to trade with us. is going to continue to trade with us. i see what you mean but at the same time when you look at what the two countries trade, it is quite important in terms of car components that will be tariff free, and automobiles themselves, and oil going from the uk to south korea, it mightjust be going from the uk to south korea, it might just be symbolic going from the uk to south korea, it mightjust be symbolic but when it comes to the car industry in the uk and energy, it's so critical they get some sort of boost, wouldn't you say? one of the interesting things is how this deal deals with rules of

origin, when you have a product sold into korea from the uk, how are they going to treat you inputs into that uk manufacturer product? will that count for the purposes of the tariffs? with regard to the tariff rate quotas, some more specific types of goods are very sensitive and come in at a lower tariff rates. the devil will be in the detail and we don't know what that is at this point but when it comes to south korea itself, i notice it's got its trade deal in principle with the uk, avoiding tariffs on its goods going into the us and vice versa. you could look at it and think, south korea are either being savvy in getting these good deals in place or they are just rolling over and letting the us and uk and anyone else have their way, what is the situation because you know anyone who's ever negotiated with south koreans will know they don't rollover. they look at the uk and sale they used to be part of the world trading bloc, now they are only 2% of the world's trade, which is equivalent to us. it'll be

interesting to see whether the deals of the trade agreement will be in that career agreement and it is early days for that. great to have you with us again. thank you for your perspective. more detail on our website so take a look. let's take a look at some of the other stories making the news. two of the world's largest defence companies have agreed to merge. america's united technologies will merge its aerospace business with missile maker raytheon to form an industry giant worth around $116 billion. the new company will become the world's second—largest business in the field, behind lockheed martin but nudging boeing into third place. swiss drugmaker roche's planned $4.3 billion takeover of us gene therapy specialist spark therapeutics has been delayed for the second time. it comes as regulators continue to scrutinise the deal for its effect on competition. both companies say they have received a request for more information from the us federal trade commission. air new zealand says it is ending

a long—standing ban on staff having visible tattoos after facing criticism that the policy discriminated against maori employees. some new zealanders with indigenous maori heritage wear tattoos on their face or arms that represent their genealogy and are culturally sacred. let's return to the issue of trade. anyone is watching any news out of china for indication how it has been impacted with its trade or by the us. today we had some numbers. china's exports unexpectedly grew again last month, despite higher us tariffs. but imports fell the most in nearly three years in a further sign of slowing domestic demand. what can we take from this? monica miller is in singapore and can tell us more. can we read much into this will not? there is always a bunch of surprises every day with this china— us trade

law. just monday and unexpectedly they've rebuffed, a sign the trade stand—off doesn't appear to be hitting china adversely at this point, at least for the stuff it sells us. part of the reason some a nalysts sells us. part of the reason some analysts believe is because people are buying these exports knowing that there is trade war doesn't show any signs of abatement but when we look at the trade surplus with the us, it rose 20 $7 billion compared to may which was $21 billion, which isn't going to make president trump happy as he heads into the g20 when he sits with china's xi jinping in 0saka later this he sits with china's xi jinping in 0sa ka later this month. he sits with china's xi jinping in 0saka later this month. imports has plunged 85%, down by almost... the lowest for three years, as the trade war intensifies with us and china. again, this doesn't show any signs of de—escalating soon. again, this doesn't show any signs of de-escalating soon. you're right.

i know you will stay right across that for us. on a camilla, thank you for now. let me show you the confirmation of the numbers you saw. asian shares higher on at the start of a new week, after the united states shelved plans to impose tariffs on mexico and investors are hoping for lower us interest rates on the back ofa pretty weak jobs report. there had been fears that a new trade conflict could have hurt already fragile economies. the us is still battling with china and can't afford a trade spat with mexico. but, in china, the yuan slipped to its weakest this year after the country's imports fell the most in nearly three years in europe, all attention is on the start, certainly in the uk, on the start, certainly in the uk, on the start of the race to become the next

prime minister. leader of the conservative party will automatically become the next prime minister. that battle getting officially under way today, many names in the running, expect a view more details on them is about who is backing who and who pulls out as the race continues. we will have details for you throughout the day. and we will talk more about some of the issues moving these numbers injust a second but here with the details on what to expect later. this week there will be shareholder meetings, public meetings, a smattering of public offerings and economic data to pass through. 0n tuesday tesla holds its annual shareholder meeting. elon musk is expected to give an update on the electric car—maker. 0n expected to give an update on the electric car—maker. on wednesday is av electric car—maker. on wednesday is a's freelance marketplace will price its shares ahead of their debut on the new york stock exchange. 0n thursday the canadian yoga apparel maker will post higher than expected

first—quarter profit compared with a year earlier, driven by strong online and in—store sales. finally online and in—store sales. finally on friday the latest retail sales numbers from the department for the month of may. joining us is mouhammed choukeir, chief investment officer at kleinwort hambros. good to see you. a lot going on this week but, as ben mentioned, as we saw in asia, the week started on a bit of a high. your thoughts. this is on the back of the announcement of the removal of the trade tariffs with mexico. another shot in the arm in financial markets in terms of potential rate cuts later in the year from the federal reserve so lots of tailwinds for financial markets. does president trump have previous form on this, in that he gets markets and investors into a state of panic and then says, no, we won't do it, and then there is relief, relief where there wasn't a concern before anyway. it is a

problem created by him and solved by him. and perhaps the problem might come back again. as we've seen with the trump presidency, the big question is how long with the current arrangement hold for? although it is a positive sign at this stage, it is taken with a pinch of salt because things can move quite quickly. something is said to me earlier, you will be watching the tech stocks and the news financial ministers met over the weekend and they've said they've come to an agreement on a g20 sort of wide plan for taxing big tech. the g20 statement is common in nature, they talk about global growth and uncertainty around politics but the big announcement was around this universal approach to taxation for the big tech companies. so there is a will to do something about it but the details are not fully fleshed out but that'll come in due course. thank you, we shall see you later. what are you like at sleeping? are

you pretty good? reasonably good. you look well, you look like you could be good. it's just that we're all deprived! yes, but we are used to it. scientists have worked out some things to see if all those things about sleep artery. still to come... do you need an extra pair of hands in the office? we'll be taking a look at a desktop robot designed to boost productivity productivity at work. the uk has created more unicorn tech companies, firms valued at more than $1 billion, than any other country except for the us and china. that's according to new figures released ahead of london tech week — which kicks off later this morning.

graham stuart is minister for investment at the department for international trade. very good morning to you. tech is one of the industry is still holding up one of the industry is still holding up pretty strongly in the uk and one where there is a lot of attention right now. we are delighted to celebrate london tech week. we are determined to make the uk a global tech centre as well. it is worth noting tech is holding up well, but the whole economy is holding up pretty well. we have record employment, as you will know. we saw in the latest export figures every single nation of the uk increased its exports to record levels and of course we saw in the ft report of a month ago of new investments as opposed to including mergers and acquisitions, we saw the uk has increased its lead in europe and had more new investments into the uk in 2018 than france and germany put together. we aren't always as good

as we should be communicating to people letting them know what we're doing but we will do that, celebrating and showcasing the best of british tech this week at london tech week. i'm interested in the investment we make in the industry because as you've highlighted, it is creating jobs and prosperity. looking at the latest figures, there is an understanding that artificial intelligence, machine learning is the future of tech. the european commission is investing 2.6 billion across all member states. china is investing 2.1 billion in one business park, whatever reinvest we won't keep up, will be? you can say that about all sorts of errors but actually if you look at financial technology, which focus on quite a lot, we are the global leader. we saw more investment last year than any of our european rivals. if you look at artificial intelligence which are highlighted, again, in european terms, we were the most

invested country in europe, we are developing it. and, today, the prime minister is hosting a roundtable of some of the world's largest tech firms, including companies from china as well as the us that we will see another £1.2 billion of investment and the government is putting more than £150 million into upskilling. we having thousands more stu d e nts upskilling. we having thousands more students in al and seeking we have the talent to match the investment coming here. good to talk to you, graham stuart, minister for thank you. 0ur our top story today. and south korea have signed an in principle free trade deal. arrangements post—brexit — and includes keeping zero tariffs on south korean exports including cars and car parts. the official deal cannot be done until after the uk leaves the eu.

driverless cars, drones and chatbots taking ourfast food orders. it's inevitable, robotic automation is becoming a bigger part of our lives as they become more advanced. but all this does not come without a lot of fear about a large workforce losing its jobs to these machine. well, one firm that's hoping its tabletop robot doesn't take yourjob but rather help with menial task in the workplace is uk—based start—up automata. backed by swiss engineering giant abb, the company makes a robotic arm called eva, which it says is more compact and affordable alternative to other machines in the market. but all this does not come without a lot of fear about a large with us now is suryansh chandra, co—founder of london—based robotics company, automata. welcome to the programme. we just saw eva in action, and she is pretty

cheap, isn't she, compared to your average robot? just £5,000 to get one of those? think of it as an affordability criteria. industrial robot start at 20000 and above. that normally makes the capital outlay quite high. for small businesses, thatis quite high. for small businesses, that is usually unaffordable, especially if they have a lotta variation in their production. what can it do? it does a lot of production line things, tasks that are production line things, tasks that a re really production line things, tasks that are really menial and mundane, things like repetitively loading and unloading machines, or in terms of of our customers tests devices for automotive manufacturers. 0ur robot essentially dials and knobs and presses buttons all day long because these tests sometimes last three months. and you can see, therefore, why ina months. and you can see, therefore, why in a factory environment people will worry that will replace low skilled, menialjobs, people putting things on production lines or whatever. there is always that

argument is that when we lose jobs, we create them at the other end so that people designing or programming these robots. does it work like that, you replace onejob these robots. does it work like that, you replace one job with another? for people on the production line, it's like giving them a calculator. it is augmenting them, it is a tool. if you have an a ccou nta nt them, it is a tool. if you have an accountant and you don't allow them to use a spreadsheet, they will be far less efficient. similarly, people on a production line have so many things to do, some of them are menial and boring, some of them are much better use of their skills. if they're shuffling between the two amongst the sites where our robots are working, they are happy this robot is taking care of these ten hours a week i had to do before and ican go hours a week i had to do before and i can go on and do this other thing. and then i can understand where else ican and then i can understand where else i can use robots in the factory. so adding more value to those jobs? yes, essentially. and this robot is up yes, essentially. and this robot is up and running and availablejust a few months ago but you started this company back in 2015. your

co—founder and you are both architects. you are from delhi, your other co—founder is from dubai. how did this all begin? you are not engineers, you are not inventors as such. i would say necessity is the mother of invention in this case. both of us have very diverse backgrounds. we in fact ended up studying at the same school in london for our post—graduation. we went on to work for zaha hadid, she was a popular architect. we worked on the research group in six years and we sat next to each other for many of those years. that is why we we re many of those years. that is why we were working at the intersection of design, technology and design, and architecture and they were a handy bridge, robots, between the digital and physical. the intention was to start explore using robots in construction. the one project where we did, didn't go so well and we ended up doing most of the work by hand. so, since then, it was a bit

ofa hand. so, since then, it was a bit of a curiosity as to do we not understand robots well enough to use them in these things? can we instead build a friendlier robot to first understand what it is good for. that was a sort of curiosity project for about a year. from there, it spun off into a company much later. and it is 48 people now, so... fascinating story. 48 people, good luck. we will see how it all goes. fascinating to see how robots which we would assume would be in big factories and warehouses get smaller and smaller, more flexible and eventually in our homes. even as small as me! are you a night owl or a morning lark? scientists in the uk and australia say they can shift the body clocks of night owls who are hardwired to stay up late into the night, in order to improve their wellbeing. teams at universities in birmingham, surrey and monash in melbourne say basic lifestyle changes can make a big difference. 0ur health and science correspondent, james gallagher, each of us has a clock ticking

inside us. our body clock keeps us in time with the rising and setting of the sun and it is why we sleep at night. but some peoples clocks run later than others. it means life can be hard for night owls. their bodies are hard—wired be hard for night owls. their bodies are ha rd—wired to be hard for night owls. their bodies are hard—wired to stay up late into the night and day morning alarm clock can force them to get up for work hours before their body is ready. the study looked at 21 people who are regularly going to bed after 2am. they were instructed to get up and go to bed at the same times every day, do so hours earlier than usual, get loads of sunlight in the morning and have fix to meal times. 0n morning and have fix to meal times. on average, people shifted their body clocks two hours earlier, were given the same total shuteye but we re given the same total shuteye but were reporting lower levels of sleepiness, stress and depression. firstly, it's really important to raise the awareness of the differences we see between people. so night owls and morning locks, and help understand that. secondly, what we are doing is providing some

really simple tools, lifestyle interventions that night owls could use to help shift them earlier, which had a positive impact on self—reported measures of depression and stress and increased performance at non—optimal times. and stress and increased performance at non-optimal times. researchers said their methods may seem like obvious advice for good sleep hygiene but they were surprised how effective such relatively simple strategies were. james gallagher, bbc news. we were all listening intently to that report. you've got your own cautionary tale about sleep, haven't you? yes, the research shows routine is key but we have recently become parents are having a child throws all of that out of the window, if you like, so it'll be interesting to say what to do when you have a baby. lots of people getting in touch with their top tips because we were talking about look at the evidence and this research and it suggests all sorts of things. no caffeine after 8pm, or

whatever. mark says, no neighbours, biggest bed possible, firm mattress, wear earplugs... no neighbours? chance to be a fine thing! where does mark live? self prescribing melatonin 30 minutes before bedtime, plain classical music and a bit of pavarotti. that sounds good. necessarily the melatonin, but the pavarotti. some of you have been in touch to tell us it isn't working at all. steve milner says, "i have worked shifts for 40 years, i don't sleep well, i have no problem with dropping off but ijust keep waking up dropping off but ijust keep waking up in the night—time". dropping off but ijust keep waking up in the night-time". a story on the wall streetjournal looks at technology as welcome about muting e—mails, texts, tweets, that is partly the problem, isn't it? our reliance upon technology. putting it another way, the constant stimulus. you need to dampen sad. and having ways to shut down the technology just before bedtime is a good way to maximise your sleep and deeper sleep

which is very important. before we let you go, quick word from you on this massive deal between raytheon and another company, merging their aerospace divisions, worth over $100 million. -- $100 billion. it is a big deal and they have complimentary products so in some ways it makes sense. the big issue is what the regulators or policymakers will make of it but the chances are it'll go through given they are reasonably small and ending up with a big merger. one of those companies that exists we don't like to talk about it too much but it is huge business, isn't it, defence? exactly, notjust for the defence sector. people think of it as defence but there are very many knock—on effects to commercial aviation and technology for medications and so on so it isn't just a it has other... it's been great to have you wonted programme. and great to have you here as well, ben. don't know for how long. few days may be? he is playing hard to get! good have your company today as

well. remember, we are alive with all the business news during the day. thanks for company, we will do it tomorrow. bye—bye. good morning. if you are after summer, you're not going to find it this week because we've got a very u nsettled this week because we've got a very unsettled week ahead. there is going to be some rain, heavy at times, almost a month's worth of rain for some of us, wendy bob and quite cool as well. this is the pressure chart this morning, you can see low pressure down towards the south—east, and with this weather front moving its way very gradually north and west woods. the rainfall this morning in the south—east is going to be quite heavy. as much as 60 mil metres in parts of the home can do to make counties, a month's worth of rain. some shells ahead of the rain but sunny spells for scotla nd the rain but sunny spells for scotland and northern ireland and the far north of england.

temperatures here could be as high as 17—19, feeling quite cool away from the rain and the brisk north—westerly wind. through tonight, that band of rain spreads north and westwards. there will be clear spells in the south—east eventually, clearer spells in scotla nd eventually, clearer spells in scotland and northern ireland but that north—westerly wind will start to increase even more as we go through tuesday. and that rain will stick around for much of the day through northern england, the south—east of england something a bit south—east of england something a bhdw south—east of england something a bit dry than today but heavy on thundery showers developing into the afternoon. some sunny spells for scotland, northern ireland, but a brisk north—easterly wind, making it feel quite chilly, 12—13dc beneath the rain. 18 or 19 away from the rain. tuesday into thursday, parts of eastern england could see as much as 60—100 millimetres of rainfall which could lead to localised flooding problems, a bit of disruption because throughout wednesday that rain will continue

across northern england and eventually into northern ireland. to the south, some sunny spells bringing the risk of some heavy and potentially thundery showers throughout wednesday. maximum temperatures getting up 16—19 but beneath the cloud of the rain 12—15. into thursday and the rest of the week, low pressure really stays in charge of the weather and with that these weather fronts just spiralling around that. scotland and northern ireland through thursday and friday some outbreaks of rain. england and wales, a mixture of sunny spells and showers. never too far away for all of us through the week. an temperatures below average.

you're watching bbc news at nine with me carrie gracie. the headlines: the tory leadership race begins in earnest today, as the frontrunner to be the next prime minister — borisjohnson — sets out plans to cut income tax for high earners. south korea and the uk have made an agreement in principle to continue trading in the event of a no—deal brexit. a coalition of women's organisations says it is prepared to take the crown prosecution service to court, accusing it of secretly deciding to bring fewer rape prosecutions in england and wales. dozens of grenfell survivors and relatives are taking legal action in the us against three firms they blame for the fire. slight changes in sleeping habits can shift the body clocks and increase the wellbeing of those who identify as night