talking trade— rachel reeves wants closer relations with the eu as she arrives in brussels for talks preparing for tramps trade war as they protect from the threat of extra taxes. we hear from our firm of extra taxes. we hear from ourfirm in philadelphia. a bumpy road ahead for vw as they gear up for cuts. hello welcome we are going to start in the uk where chancellor rachel reeves is calling for closer ties between the uk and eu, saying it will help boost economic growth. she has arrived in brussels where she will be the first chancellor of the x to attend a meeting with euro zone you are finance ministers since britain left the eu in 2020. speaking at the euro group meeting this

afternoon, miss reeves will say resetting relations means breaking down barriers to trade as well as helping businesses sell in each other�*s markets. uk exports of goods and services to the eu were £365 billion last years. that is almost half of all of the uk's exports. meanwhile imports from the eu account for almost half of the uk total. since brexit, exports have fallen and they are now 11% below their level in 2019 before the uk formally left the eu. with the threat of us tariffs under donald trump and increasing competition from china, there is a feeling on both sides that are closer relative relationship could be beneficial. let's talk now to samuel milley who is from centre for economics and business research. good to have you here. so that meeting will take place today and rachel reeves really will lay out the benefits of both sides. that is the point here. the uk needs

europe. 50 the point here. the uk needs euroe. ., europe. 50 the eu and uk will be europe. so the eu and uk will be two of _ europe. so the eu and uk will be two of each _ europe. so the eu and uk will be two of each other's - europe. so the eu and uk will be two of each other's most i be two of each other's most important trading partners. the message from the meeting will be one of improving ties for the remote mutual benefit of those economic areas.- the remote mutual benefit of those economic areas. what will those economic areas. what will those ties look _ those economic areas. what will those ties look like _ those economic areas. what will those ties look like in _ those ties look like in practice?— those ties look like in practice? those ties look like in -ractice? , those ties look like in ractice? , , ., practice? there might be some concessions — practice? there might be some concessions in _ practice? there might be some concessions in regard - practice? there might be some concessions in regard to - practice? there might be some concessions in regard to food i concessions in regard to food exports and farming products, but a lot of the potential of the new agreement between the two parties will be limited by some of the factors that labour have committed to. including free movement and an absolute return to the single market. what are the key areas that would stand to benefit from closer ties? we know the uk is a big exporter in a number of key fields. which would see the biggest uplift? an?

key fields. which would see the biggest uplift?— biggest uplift? any industries that our supply _ biggest uplift? any industries that our supply chain - biggest uplift? any industries| that our supply chain intensive such as manufacturing would be a prime example of an industry expected to benefit from this, as would be export intensive businesses like on the good side of the economy.- businesses like on the good side of the economy. how much of this is down _ side of the economy. how much of this is down to _ side of the economy. how much of this is down to what - side of the economy. how much of this is down to what is - of this is down to what is happening elsewhere? especially the us tariffs and the protectionist america under donald trump. and what might happen in china. this is about sticking together in the face of big threats from china and america, isn't it? the of big threats from china and america, isn't it?— america, isn't it? the threat of trump's — america, isn't it? the threat of trump's tariffs _ america, isn't it? the threat of trump's tariffs is - america, isn't it? the threat of trump's tariffs is a - of trump's tariffs is a downside to the uk and eu economies, it appears that this has hastened along negotiations between the uk and the eu in order to club together and minimise any risk from changes

to global trade patterns.- to global trade patterns. thank ou. to global trade patterns. thank yom now. _ to global trade patterns. thank you- now. one _ to global trade patterns. thank you. now, one of— to global trade patterns. thank you. now, one of the - to global trade patterns. thank you. now, one of the key - you. now, one of the key reasons why they are keen on closer relationship is because of the threat of protectionist america under donald trump. 0n america under donald trump. on sunday, the president elect gave his first major interview since winning last months election. speaking to nbc news he talked about his campaign pledges including the imposition of tariffs on america's biggest trading partners. i am a big believer in tariffs. i think tariffs are the most beautiful word. i think they are beautiful. it is going to make us rich. we are subsidising canada to the tune of over $100 billion per year. we are subsidising mexico for almost $300 billion. we shouldn't be subsidising... why are we subsidising these countries? if we are going to subsidise them, let them become a state. we are subsidising mexico, we are subsidising canada and we are subsidising many countries all over the world. all i want to do is i want to have a level, fast but fair, playing field.

so donald trump is clear on his intentions to tariffs and he has promised tips lap 25% import duties on goods from mexico and canada as soon as he is an office and an additional 10% on anything coming from china. many companies are now pushing through orders to avoid expected cost increases. 0ur north america business correspondent found this out when she meant to meet an importer in philadelphia. so these are some of the bags that we have in the warehouse. is it one of your more popular ones? yeah, the backpack. handbag designer sherrill mosee tok action immediately after the election, reaching out to her chinese manufacturer partner. she didn't want to risk delays, especially with chinese new year fast approaching at the end of january. after the election i am like, 0k, we need to get these bags in before you go on your vacation. the rush wasn't due to a surge in demand, it was the looming threat of tariffs. i have got to be ready

and prepared for it. by shipping her bags ahead of schedule, mosee is working to avoid the tariffs on chinese imports that donald trump has promised to impose on day one of his presidency. the idea behind tariffs is pretty straightforward, make imports more expensive so that products made in america and stored in warehouses like these seem like a better deal. it is all about pushing companies into manufacturing in the united states. but the big question is, will companies actually move production back here? one american firm with no plans to bring manufacturing back to the us is steve madden, the well—known shoe brand. but it is speeding up its relocation efforts. just two days after the election, the company said it would cut its chinese production in half, to avoid trump's tariffs. our goal over the next year is to reduce that percentage of goods that we source from china by approximately a0 to 45%.

the proposed tariffs are already changing how goods are being handled. warehousing giant prologis is seeing an uptick in interest in businesses looking for space to stock up. these types of requirements have been on a margin. you are seeing some goods coming into the united states, our customers are telling us that they are finding spare places to store goods. i can put my shoes in here, my work—out gear. sherrill mosee doesn't believe she can pass the added cost on to her customers, instead she is now looking for new suppliers in cambodia and india. if we are talking about adding tariffs on everything that comes in, people are going to be more concerned about buying their kids clothes and things that they need in their home, not a bag. you can shop on the website now... with the disruption already being felt, the threat of these tariffs is already imposing real—world cost on businesses.

well, in his interview with nbc news on sunday donald trump confirmed he has no plans to replacejerome confirmed he has no plans to replace jerome powell as confirmed he has no plans to replacejerome powell as the chair of the federal reserve. 0nly last month, powell said he would refuse to to leave office if trump tried to end his term early. powell said that if he tried to remove him or any other governors it would not be permitted by law. it is another critical week for europe's biggest car—maker. in germany thousands of volkswagen workers have walked out this morning as a fresh round of talks between the car—maker and the workers union takes place regarding vw is restructuring plans. vw is looking to cut costs as it struggles with weak ev demand and steep competition from china. we are going to

talk to ferdinand dudenhoffer from center automotive research institute. how damaging are these strikes for volkswagen? this isn't the first time it has happened, is it? we don't see an end — has happened, is it? we don't see an end to _ has happened, is it? we don't see an end to the _ has happened, is it? we don't see an end to the conflict, - see an end to the conflict, because on one hand we have the trade union if wants to increase wages and on the other hand, we have the vw management which is in big problems due to increasing costs. just compare that, if you produce the same car instead of year but somewhere else you have better prices for the customers and margins of eight or 9%. if you make the same car in volkswagen

it is about i% and it is subsidised. it is a dramatic situation that vw faces in germany because vw is in principle a political institution, a political company. it is almost like a state owned company because in lower saxony they have 20% of the shares and the trade union has voting rights of 50%. they have the majority. i has voting rights of 50%. they have the majority.— have the ma'ority. i wonder, civen have the ma'ority. i wonder, given the — have the majority. i wonder, given the fundamental - have the majority. i wonder, - given the fundamental challenge faced by vw and legacy car—makers, what are the hopes that the two sides can come to the table. it feels like someone has to blink first and compromises will have to be made, won't they? it compromises will have to be made, won't they?— made, won't they? it will be very difficult. _ made, won't they? it will be very difficult. at _ made, won't they? it will be very difficult. at the - made, won't they? it will be | very difficult. at the moment they are at the table and then

they are at the table and then they will go into losses and losses. the company, by itself, the whole crew will be destabilised, so they have to make dramatic changes but the politics and trade unions don't want to do that. how they go on in the future at the moment nobody knows. the big problem is the state share of 20%. my proposal is, lower saxony sell the shares and take the money and put it into new ventures. thank you. that is your business today we will see you soon goodbye.

hello from the bbc sport centre. chelsea sit second in the premier league, just four points behind leaders liverpool, but still their manager, enzo maresca, is playing down all talk of a title challenge. they had to come from two goals down to beat tottenham on sunday, but did, eventyually winning 11—3 with cole palmer scoring two penalties. if you start to sink into games or three games it is completely wrong. the main focus has to be, enjoy their day off with the family and friends and when we come back go for it 100%. no more than that. the rest, we are happy that our fans are happy. they dream, because from outside it is quite clear. also, inside the reality is that we are not ready to be

there. well, chelsea fan teema nicholls, is refusing