Uses leftovers to make luxury goods. Would you buy upcycled goods . Do you reinvent things that you dont use any more . Let us know use the hashtag bbcbizlive. Hello and welcome to business live. The euro fell against major currencies on monday as Coalition Talks in germany collapsed, throwing Angela Merkels future into doubt and creating uncertainty in europes largest economy. Eight weeks of negotiations following septembers general election fell apart, with the centrist free democrats, led by christian lindner, pulling out. It leaves Angela Merkel with few options given her stated objections to ruling as a minority government. Later mrs merkel will meet the german president Frank Walter Steinmeier who could call a new election. Jenny hill is in berlin for us. What went wrong with the negotiations . It was always going to be tricky bringing together these three very different political groupings, mrs merkels conservatives, the green party, with their environmental stance, and the free democrats, the pro business party. The main sticking points are immigration and refugee policy, but also environmental policies, warmer with a lot of toing and froing over, for example, Coal Powered Energy production in germany. They are very disparate parties. But there was a sense that the leaders of those parties were somewhat. There was an element of theatre to the proceedings. Germany has been very surprised that Christian Lindners decision to pull out of the talks, particularly as bit by painful bit, compromises were slowly eking out. There was a sense that a bit more talking could have resulted in a coalition government. It wasnt to be, and germany now faces a crisis which is unprecedented in post war german politics and may represent the end of the merkel era. So a lot of uncertainty this morning, which of uncertainty this morning, which of course spreads well beyond germany and not just of course spreads well beyond germany and notjust economically. Mrs merkel was not at a summit of eu leaders in sweden last week. She was sat at the negotiating table. To date she has cancelled a planned meeting with the dutch leader. She is going to have to focus now on Domestic Affairs and fight for her own political survival. That will have implications across europe, perhaps even the rest of the world. Simon derrick is chief markets strategist at the bank of new york mellon. You were listening tojenny outlining what went wrong and what this means. She said it is very uncertain as to what happens next. When you look at how markets reacted, one of the big stories this year has been market concerns about the rise of populism within europe and specifically around the elections. We had the french president ial election, the dutch general election. There are concerns about the italian general election coming up. In a lot of ways, the german election was seen as being the safety. Even when ft came in and won their 13 , Angela Merkel was still seen as being the safe leader. The uncertainty that is now being thrown in by the lack of a coalition being formed will obviously focus people back on politics. What about the effect on the eurozone . Germany has dominated the way we have gone through the eurozone crisis in terms of the periphery countries like greece, portugal and spain. Of the periphery countries like greece, portugaland spain. Do of the periphery countries like greece, portugal and spain. Do you think that relationship will change, because they have been so strict about no forgiveness of their debt . Its good. It depends on the nature of the government that comes in. If we have something that is more right leaning and fiscally steer, they could prove to be even harsher on some of those peripheral countries. Even if we end up with parties which are more centrist, they may be more relaxed. But the eurozone crisis has been going for seven years. Nobody wants to rock the boat at this point. And what does it mean for the other issues regarding brexit . We have the summit next month. We have theresa may and her Cabinet Meeting today, and we are told they will discuss a better divorce bill. If a new election is called in germany, do you think that would delay . At the moment, we still have this drive by all the leadership towards this negotiation position. It is diving towards getting the divorce bill sorted out. It is unlikely to derail things immediately. But if we have a new government coming in, maybe they will have a different view. If it was more populist intone, maybe they would be more against brussels and everything that accompanies that. Simon, you will return. He has more stories to get his teeth into later. Lets take a look at some of the other stories making the news. Toshiba shares fell sharply after Board Members approved a plan to raise more than 5 billion by issuing new shares. It will help plug a hole in its finances left by its bankrupt us nuclear subsidiary and avoid being delisted in tokyo. Its an important day for brexit negotiations with uk prime ministers cabinet to discuss an improved divorce bill. Brussels says britains offer to settle outstanding financial commitments to the eu is needed to unlock trade talks. A deadline set by zimbabwes ruling party for president Robert Mugabe to resign orface impeachment is just hours away. Mr mugabe gave an extraordinary television address in which he was expected to give details of how he would stand down. But instead, the 93 year old said he would lead next Months Congress of the ruling zanu pf party. Chinese online giant alibaba has taken a 2. 9 billion stake in one of chinas largest bricks and mortar grocery retailers. Leisha santorelli is in singapore. What has the reaction been to this . This has been an interesting deal, because more and more people are shopping online. And by alibaba putting so much money into another company, it shows that there is future for bricks and mortar stores. So it is generating discussion in the business community. The company com petes the business community. The company competes with walmart. It operates hundreds of markets selling everything under the sun. Alibaba has been expanding into the fiscal retail world, so this isnt new, but it shows that they are looking to go to great online and off line selling and shopping. So in recent years, they have bought into the grocery firms and shopping malls. It looks like the strategy has been emulated by amazon as well. They bought whole foods for 14 billion. It is part of a strategy where they will acquire hundreds of Grocery Stores which can also Service Small warehouses to help with last Mile Delivery operations. So it says the six E Commerce Companies the expensive task of building their own infrastructure in different locations and neighbourhoods. Alibaba locations and neighbourhoods. Aliba ba and amazon locations and neighbourhoods. Alibaba and amazon are looking to transform how we tail is done at the moment. Thank you. There are worries about tax reform in the United States now worries about the breakdown of talks in germany. Lets see how the european markets have opened. Samira hussain has the details about whats ahead on wall street today. It will be a shortened week this week as the country prepares for the thanksgiving holiday, which falls on thursday. There will still be some Business News worth paying attention to. The us federal reserve, americas central bank, will release the minutes from its october policy meeting on wednesday. The policymakers kept Interest Rates unchanged during the meeting and pointed to strong Economic Growth and the strengthening labour market. Earnings will also continue this week. We were here from a company which has been benefiting from Higher International demand for it construction and farming equipment. And one Home Improvement retailer will have got a boost in demand for emergency supplies like generators and Building Materials because of the hurricanes that hit the us. That was some era in new york, outlining the day in wall street. It is also a busy day in europe. The fate of two major european agencies will be decided later. The European Medicines Agency and European Banking Authority currently reside in london which will no longer be part of the eu from the end of march 2019. The 27 Member States will vote later on which cities will become their new homes. Joe lynam has more. This is canary wharf in londons east end. Its home to some of the biggest banks in the world, but also to two very important eu agencies, the European Banking Authority in the big tower, with almost 200 staff, is here. But also here, with almost 900 staff, is the European Medicines Agency. Thanks to brexit, they are both moving out. Today, they will find out where they are moving to. And two dozen european cities have been scrambling to host these prestigious agencies. Thats because their staff are very well paid and wherever they go, they bring thousands more jobs as Companies Want to be near their regulators, be they banks or pharmaceutical giants. 19 european cities have bid to host the European Medicines Agency, which decides on whether drugs can be sold in the eu. Eight cities have bid to host the European Banking Authority, which monitors the health of the eus biggest banks. From unlimited access to the zoo, free moving costs and rent paid, many cities have major incentives to host the two agencies. Many cities have offered major incentives to host the two agencies. But politics may trump all that. The uk will lose 1,100 good jobs of regulators who spend money in the capital, but there is more to it than that. Having a regulator creates a halo effect, because lots of american and japanese businesses set up shop in london precisely because they want their staff to be closer to the regulator so that they can help shape its decisions, get their products under their noses. So lots of companies have said once the regulator moves, they will have to think about sending staff to follow it. Irrespective of which european cities win today, this will be the first tangible manifestation of brexit. It may not be the last. Still to come. Turning trash into treasure well hear from a company that recycles unwanted bits of hose, leather, and other materials. Youre with business live from bbc news. Christmas spending is expected to fall this year for the first time in half a decade. According to figures out today from visa, consumers are set to make the most of black friday promotions but spending for the whole of the Festive Season is expected to fall. Steph mcgovern has been at a co Op Distribution Centre near newcastle this morning. Good morning from this co Op Distribution Centre, where you can see one of the tracks which has arrived, bringing lots of products. They have Something Like 3500 different product lines here. They are being zipped off to various shops in the area. There are about 260 shops in the north of england at the co op is sending this stuff too. We are here because we are talking about what is happening in retail. It is literally the busiest time of yearfor it is literally the busiest time of year for them. It is literally the busiest time of yearfor them. In the run up it is literally the busiest time of year for them. In the run up to the festive period, they will be thinking about how to prepare. There is research out from visa which suggests that we will be spending less this year than we have in previous years because of the cost of everything going up and wages not keeping up. So while we have seen inflation rise and wages not rising as much, it means that in real terms, it is putting a lot of pressure on the people spending in the shops. We dont have as much money as we did in the past. In terms of where that pressure is going to fall, analysts suggest that it will be travel. Clothing as well, and also your big ticket household goods. For food, things and also your big ticket household goods. Forfood, things look like they will be fairly flat. People love spending money on food at christmas. Also in terms of where the money is going and how we are spending it, whether it is in the shops or online, just over a third of what we are spending christmas will be spent online, according to the analysts at visa. Sorry busy time still for the retailers, but things could be tough for them. Lets show you one of the story which i assume affects many of you if you are british gas customers. Its owners are saying it is going to withdraw the standard variable tariff or svt which is thats for new customers by the way which is one of the tariffs that we have to try and get our heads around early time we look to swap energy providers. Read more on the business live page. Youre watching business live our top story the german chancellor, Angela Merkel, will hold talks later with president Frank Walter Steinmeier, after the collapse of Coalition Talks over the weekend after the centrist free democrats pulled out of negotiations. No deal at the moment. Now lets get the inside track on one luxury accessories firm with a difference. Elvis and kresse is a uk start up which is using reclaimed materials to create things like handbags, wallets and belts. The company uses everything from old firehoses to used coffee sacks and parachute silks to make its products. The firms founder, kresse wessling, says she wants to add value to waste and build a valuable product from it. Kresse is with us. Welcome to business live. She was smiling when we we re business live. She was smiling when we were reading the introduction as they always do. I always feel nervous when i have got the founder next to me and reading the introduction. Tell us about how and why you started this company . moved to the uk in 2004. I have had a love relationship with waste and i wa nted a love relationship with waste and i wanted to solve a problem. I went to quite a few landfill sites and i had a chance meeting with the fire brigade and i fell in love with their old hoses. You fell in love with an old hose . Lets not go there. Lets show the viewers what you make out of the hoses. This is amazing psmts beautiful, beautiful handbag which we can see here. This will cost you around £200 in the uk. Yes. Where can you buy it . At elvis and kresse. Com and select boutiques across the uk and europe and through various Online Retail partners over the world. And this is made out of fire hoses and it is specific in the sense in that it is ten centimetre wide strips. How much of the hose is left behind . We leave behind very little hose. We started collecting hoses since 2005 and none of london fire brigades hoses have gone to landfill. 50 of the profits from the range goes to the firefighters charity. What about chemicals for cleaning it. One of the things about rubbish waste it is dirty. You can imagineafire rubbish waste it is dirty. You can imagine a fire hose cleaning machine didnt exist. We use a machine that uses only water and we treat our own waste water. What about the hose that have been in chemical fires and stuff. Hoses are nasty things. They go to nasty places . Contaminated hoses are always segregated before we use. We have 15 raw materials. The lining is an auction banner. We use parachute silk and we have started collecting a significant amount of leather waste which is a problem on an entirely different scale to fire hose waste. And i guess were scale to fire hose waste. And i u. Scale to fire hose waste. And i guess were going to continue to collect these niche wastes that have no hope. We collect the materials that would otherwise go to landfill or incineration. To what extent are you making an impact . Im sure many watching will think it is fantastic what you are doing, but its such a huge, huge issue the issue of waste and youre saying you want to solve this issue. Is that realistic . think every business, if they chose a problem to solve, and then successfully d id a problem to solve, and then successfully did it, we would have a better world. The point is trying to make the entire world better and for us our make the entire world better and for us our niche fire hose problem we we re us our niche fire hose problem we were able to solve while making donations to the firefighters charity. We are tackling a much larger leather waste issue, but we are doing that in conjunction with burberry. Would you have a bigger impact if you went to the othernd of the market. You are making goods that those who could make good choices can afford to make, but those who buy at the lower end in terms of their retail spend dont have so much of a choice and it might be better if we impact those more . The second most polluting industry in the world is the fashion industry. I think that we have to change it from all angles and for us we manufacturer the products ourselves. We have two sites. We are a living wage employer. And i think what we are trying to do is set an example of how this can be done in a sustainable wonderful, positive way. Whats your ambition . sustainable wonderful, positive way. Whats your ambition . I would really like to see the world be much better. For your company . We only ever wa nt to better. For your company . We only ever want to scale to solve the problems weve tackled. The leather waste problem is 80,000 times larger than the fire hose problem. So i suppose my ambition is to be in some way, whether it through partnership or by other means, 80,000 times larger than i or by other means, 80,000 times largerthan i am or by other means, 80,000 times larger than i am now. We will watch with great interest. Thank you for coming and bringing that gorgeous bag and telling us more about your company. Im going to remove that. It is kresses. In a moment well take a look through the business pages but first heres a quick reminder of how to get in touch with us. The business live page is where you can stay ahead of all the days breaking Business News. Well keep you up to date with all the latest details with insight and analysis from the bbcs team of editors right around the world. And we want to hear from you, too. Get involved on the bbc business live web page, bbc. Com business on twitter, bbcbusiness and you can find us on facebook at bbc Business News. Business live on tv and online, whenever you need to know. So we asked would you upcycle fancy stuff . Steve says, is it not waste of time or money . It is not a waste of time or money . It is not a waste of time. Look at the current hot topic of plastics in the ocean, recycling or recovery of the energy from these plastics helps to prevent the contamination in the first place. Nicholas boot says, it has to be done, digging up the planet and burying it again is nota to be done, digging up the planet and burying it again is not a way for longevity for our species. And burying it again is not a way for longevity for our species. We do our best to recycle and reduce waste, but producers must stop producing so much in the first place. Thank you for your views. Lets move on to the newspapers. Simon is here. A turning point in the brexit talks. According to the ft they will be talking about coughing up more money in their divorce bill and they think they have got the cabinet behind them and how much, 40 billion is it, maybe more . So you remember that the initial estimates from the eu side and independent folks was around about 60 billion. We came in with 20 billion. So, i guess it is not surprising that in the paper we are reporting about something that could go reporting about something that could 9 up reporting about something that could go up to 40 billion. And that the cabinet is behind theresa may on this. The key issue, of course, is going to be what strings are attached to that particular deal. Of course, thats really going to be about what happens with the trade negotiations that take place afterwards. Important bit this, we need to get through notjust the divorce bill, but there is the Northern Ireland story and the Citizens Rights before we can go to. The Northern Ireland story will be pushed into the trade negotiations because it is the way that border works in terms of being an open border or a closed border, whatever it is, thats very much linked to how the trade works between the two sides . linked to how the trade works between the two sides . I think it has to because if we dont then there is a risk that we are going to start getting to a point where we havent been able to finish the divorce bill before getting on to trade and we are not going to have enough time for companies to make their second choices before brexit. Just before we go on to talk about the next one. It will be a humiliating climb down for some of the brexit or brexiteer, dont you think . Borisjohnson was saying they are going to have to whistle for the money . Yes, it is, buti are going to have to whistle for the money . Yes, it is, but i think most people accepted there would be money and 40 sounds like it. Monaco builds into the method to house new throng of super rich. Interesting story following on from the paradise papers, isnt it . They are talking about building enough space for 220 extra apartments. The average cost of for, what you get for 1 million in monaco is 17 square meters. Thats one third of what you get in paris. It is more extensive than in the centre of london. Thats about the centre of london. Thats about the size of a studio. Basically somewhere to put your bed and your million. And your very small dog and little bit extra to swing a cat in. You can tell none of tus live there us live there. Thats it from us today. There will be more Business News throughout the day on the bbc live webpage and on World Business report. Well see you again tomorrow. It is safe to say there is a lot of weather to come in the week ahead. Low pressure after low pressure will be coming in from the atlantic. This is how we are starting the week. Still cold enough for a bit of snow into the scottish hills for monday morning, but milder air will be pushing in across the uk for a time this week. It looks like this will be pushed away by colder air from the north by the end of the week, but had is how we start off on monday. Some snow on the hills in northern scotland. Some slushy roads. The higher level routes. A lot of rain in scotland to begin with. A lot of cloud across the uk. Still chilly in northern scotland. We will see the rain and the snow tending to fizzle out as we go on through the morning in scotland. Some outbreaks of rain to begin with for Northern Ireland and Northern England. You come further south, yes, there is plenty of cloud, there isnt a huge amount of rain, but it will be damp and drizzly in places. What we notice the most is how mild it is compared with recent mornings. So starting the day across wales, the midlands and south west england, temperatures into double figures. So the milder air moving in, but it is doing so with cloud. So, we are hard pressed to find much in the way of sunshine at all during monday. Just a few brighter breaks to the east of high ground. Outbreaks of rain tending to fizzle out, but there will be patchy, light rain around even into the afternoon in some spots. Double figure temperatures maybe into southern most parts of scotland, but elsewhere in scotland, single figures for another day. So still a chilly feel especially the further north you are. On to monday night and tuesday morning, we will ta ke night and tuesday morning, we will take another spell of rain through Northern England and into scotland. Things will turn milder as we go on into tuesday. A mild night. It looks wet on tuesday especially in northern scotland. We will see another bit of rain moving through Northern Ireland and outbreaks of rain spreading south east wards through england and wales. To the east of that before any of that gets m, east of that before any of that gets in, given any brighter breaks, temperatures mild. A few spots maybe reaching into the mid teens for a while. Midweek in the uk with stronger winds for a time as well, but you can see low pressure systems queuing up to bring some wetter, windier weather for a time midweek, but we are expecting things to turn colder again by the end of the week. So the milderfeel colder again by the end of the week. So the milder feel mayjust be brief. Rain at times and a bit of snow on the hills in scotland. Often windy at times this week as well and a colder wind by the end of the week. Hello, its monday, its 9am, im victoria derbyshire, welcome to the programme. Our top story today, Robert Mugabe has an hour to resign as president of zimbabwe or face impeachment he certainly showed no signs of resigning last night. The operation i have alluded to did not amount to a threat to our well cherished constitutional order, nor was it a challenge to my authority as head of state and government. Well get reaction from some of those whove been tortured by the mugabe regime. Also on the programme punishment attacks featuring kneecapping or assaults using anything from sledgehammers to electric drills are taking place in this country right now