for the biggest business stories. hopes of a european mega—exchange between london and frankfurt are fading fast. the london stock exchange says the regulatory hurdles are too high. nokie hopes to revive its flagging the classic 3310. we'll get a hands—on preview from the mobile world congress in barcelona. welcome to world business report. i'm sally bundock. in a minute, we'll look at the potential collapse of the merger between the london stock exchange and deutsche. but first: the clock is ticking, with speculation mounting the uk prime minister may trigger article 50 on the country's departure from the european union in early march. since the referendum, there have been major concerns in london it could lose its position as europe's financial capital. but one of germany's most senior central bankers tells us why he believes the city will retain its crown. at present, britain benefits from so—called "passporting rights" which allow uk—based banks free access to the european union. the city of london's main industry lobby group appears to have given up hope on maintaining these rights and is now campaigning for "equivalency" to form part of the uk's package when it leaves the trading bloc. equivalency is a relatively new legal concept which allows companies to trade freely within the eu, assuming it has similar regulatory standards. but the financial times is reporting this diluted equivalency agreement may be tougher on britain than was previously thought. andreas dombret is a board member of the bundesbank that oversees germany's financial system. he told the bbc he is open to consulting with banks wishing to relocate to frankfurt, but he also issued a warning. from a german perspective, should a business or a bank be looking towards moving to germany, we will not accept empty shells, letterbox companies. we will make sure that the management, the controlling, the risk controlling, etc, is done out of germany. that does not mean we would have back—to—back booking models. but the structures and all the like is not something we would forgive. andreas dombret from bundesbank. it's also being reported this morning the $31 billion merger of the london stock exchange and deutsche boerse could collapse. it looks like the regulatory hurdles are too high ending the companies efforts to create a european mega—exchange. peter hahn is the henry grunfeld professor at the london institute of banking and finance. good morning. good morning. good to see you. let us start with the exchanges. are you surprised they will not come together eventually? no. it is an amazingly complex issue, especially with brexit. it was a contest in a certain way between frankfurt and london for dominance. london was going to get the overall holding company. that was always presented, first with germany and brexit, and the bigger issue. what they are relying on is something more complex than a merger problem, a set of activities and a merger that has to happen. the city of london and the whole brexit negotiations. as we mentioned, theresa may is likely to trigger article 50 in march, just a few days away, the month of march. this stops the process of the negotiation, the exit of the eu, and will take up to two years. now, there is so much to negotiate within that. but the city of london is incredibly important, isn't it, to the uk economy, that they get a great deal. it is a major taxpayer, a disproportionately large one. just from the income of business is. but from the people who work in the city as well, it is substantially above average and they pay a lot of income tax. we talked about the passporting rights issue and this so—called new equivalency, which is not quite an equivalency. talk us through these two and what the outcome might be. passporting rights simply says that a bank in any eu country is able to do business in another eu country without having to set itself up and get a separate licence, et cetera. equivalence means my country has rules and your country should have equivalent rules to ours. even if they are not the same. therefore, you can do business in my country and vice—versa. it has all been a kind of tentative races and hasn't really worked out. —— process. because of that it could almost be shut off. 30 days if you do not like it. that has always been a bit of a charade. we have been trying to see the outcome but i do not know. what about the rules of banks operating outside london? it is important to london, but also to europe, that it works well. andreas said it clearly. europe expects, and germany in particular, he was almost speaking for germany, it wants fully operational businesses to move to germany, and not come from the uk any more. and that is relatively similarto any more. and that is relatively similar to the way europeans do business in the us. now, the us, a european bank of any size, it supposed have what is called an intermediate holding company, and that means a separate bank that is rig goodbye the united states. and thatis rig goodbye the united states. and that is what we are moving to with the use. —— that is seperate to the united states. there is a lot more detail and more of the interview on oui’ detail and more of the interview on our website. do take a look. now, let us talk about nokia! nokia used to be synonymous with the mobile phone. and hmd, the company which recently bought the rights to the nokia brand, is hoping a blast from the past will restore the company back to it former glory. the handset on the left may not look immediately familiar to you. but the handset on the right should ring some bells. nokia is resurrecting its iconic 3310 model, but the latest version has a battery that can last an entire month on a single charge. that's mobile world congress in barcelona. rory cellan—jones sent us this report from the mobile world congress exhibition. barcelona. and as the mobile phone industry arrives for its annual jamboree, there is the starter in the air. singing the nokia tune. nokia is making a comeback. this was its first chance to make a big splash. and with a range of new smartphones, it brought out something very retro. let me reintroduce the nokia 3310. you cannot do much with this phone except make calls and play a game of snake, but the battery lasts forever. we ask consumers what is the best iconnect device from nokia? we thought, let us have some fun and be creative with this device. this may be fun, but let us face it, it isa gimmick. may be fun, but let us face it, it is a gimmick. if nokia wants to be a major force is a gimmick. if nokia wants to be a majorforce in the is a gimmick. if nokia wants to be a major force in the world again, it will not be because of the 3310, but a new range of android smartphones. this is already selling well in china. but in a market where it smartphones all look the same, the market is tough. they had to look backwards as well as forward. by bringing out this truly iconic device with bags of nostalgic, for many people it was their first mobile phone, it captures the attention of the people and let them know that nokia is back. will would switch my phone. even if it had no internet? yes. i would change my mind. here is another phone making a comeback. this is the blackberry 31 launched by a chinese firm. two big names making an unlikely bet they could be big again in the future. bbc news, barcelona. and there is a lot more on the website. take a look. from me, it is goodbye. but i will be back soon to look at the papers. see you then. chancellor philip hammond should make schools a priority in the budget, according to a teaching union and the national association of governors are calling for. the call comes after the resignation of one head teacher over funding concerns last week. the national association of head teachers says staff and governing bodies are being forced to make "impossible choices." 0ur education correspondent, gillian hargreaves, reports. put your hand up if you have got... some schools are warning they will have to reduce the school week to four days. 0thers have to reduce the school week to four days. others say they will have to cut lessons like arts, sport and music to save money. now, after a message from the chancellor of the exchequer, the union says it needs more cash from the government. they say this in a letter. the government points out it is spending £40 billion on schools in england this year, the highest cash figure ever. in a separate report, the institute for fiscal studies says following investment, they face real terms cuts for the first time in 20 years because investment has not kept pace with rising school numbers and more staff and running costs. gillian hargreaves, the bbc news. coming up at 6am on breakfast, dan walker and louise minchin will have all the day's news, business and sport, as well as more on all the winners from this year's 0scar awards. la la land won five awards in total, including best picture, but failed to break the record for most 0scar‘s gongs ever won. it eventually ended up being moonlight that won after the award was incorrectly given to la la land. but they still got six awards. "la la land" picks up six awards at the 89th academy awards — including oscars for best director and actress — but a best picture award is mistakenly given to them and then taken back and given to ‘moonlight‘. mahershala ali has won the best supporting actor award for moonlight. the oscar for best supporting actress went to viola davis for fences. they're the first black actors to win an award since 2014. what a night, hundreds of millions of people watched that ceremonially all over the world. le figaro reports on the upcoming presidential election in france. it has a poll predicting that after april's first round of voting, the two top contenders would be the national front‘s marine le pen and centrist candidate emmanuel macron. but of course, these arejust predictions. hollywood blockbusters are known for their dramatic last minute twists, and the oscars certainly delivered. the hollywood reporter website writing about how moonlight won best picture, but only after anotherfilm, la la land, was mistakenly announced as the winner. remember the retro ring tones and addictive snake game? well, nokia's bringing back its iconic mobile phone, the 3310. that's in the daily telegraph. the financial times writes that breakneck growth in china has sent wages tripling over the past decade. pay rates for the manufacturing sector have now soared above most latin american countries. a report in the times suggests ministers in the uk will demand that big tech companies like facebook and twitter must develop new technological solutions to control cyberbullying. the article says the firms could face sanctions if they don't comply. and millennials in china seem to be changing their shopping habits. the china daily reports many are moving from the online marketplace back into the so—called real world. yes, they're back visiting stores in person. quite right! i have this discussion every day at home. not that i really wa nt to every day at home. not that i really want to go to the shop, i would rather go to the shop and go online. joining us is michaela bergman, chief counsellor for social issues

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