18/07/2016 World Business Report

The government tries to reassure investors after the weekend's failed

coup attempt but one of the country's most important

Does Canada have the answer to the UK's negotiation with Europe?

We'll be hearing from the country's Trade Minister.

Japan's Softbank is ready to snap up one of Britain's

Following the failed military coup in Turkey,

the government there is trying to reassure investors

that it is in control of the country and the economy.

The Turkish Lira tumbled nearly 5% in late trading on Friday,

It was the Lira's steepest one day fall since the financial

The country's Central Bank has promised to provide unlimited

liquidity to banks, and the deputy Prime Minister has taken to social

media trying to reassure investors the economy's

And there are concerns it could hit the tourism industry hard.

A slump in this all important industry has been fuelled

In May, foreign arrivals continued to fall, down by more than a third

Michael Greenfield is a business journalist in Istanbul.

Thank you for being on the programme. Give us your take on the

feeling there where you are at the moment. Obviously we are seeing a

lot of a lack of confidence going into the markets. The FDI played a

huge role inside the Turkish economy, over 2015, $11.5 billion,

certainly we are looking at some of that being withdrawn from the

economy over 2016. You mentioned tourism as well. There are a few

figures flying well, 45%, $1 billion, or even more, over the

years. -- around. I am certain after January's attacks and the ones to

weeks ago, we have ready experienced some of that downfall and we will

see more in the next six months into 2017. A lot of headwinds in Turkey.

It would seem that Howerd plays out here onwards is critical in terms of

foreign investors' view of how they shooed invest in Turkey. -- how it.

-- should. We will see how that changes in terms of how revenue

comes into the economy. There have been talks about the overriding

issue is being 2-fold in the Turkish economy. The current account deficit

deficit has always been quiet large. That has been softened by the inflow

of FDI. We also have hot money leaving the economy. 10 billion US

dollars that left in 2015. We expect that to continue into that and a 16.

That will compound issues with the currency as well. And by FDI you

mean foreign direct investment. Only a few years ago Turkey was seen as

one of the most exciting emerging economies, and it was getting a lot

of attention. Do you think President Erdogan can turn this situation

around and regain that sort of view internationally as one of the most

exciting places to invest? It is difficult. Obviously, some of these

things are out of his control. The geopolitical situation is not

favourable and hasn't been for a while. That has been affecting

markets. But what we might see, obviously, Erdogan will try and

solidify things at home. Obviously, he might try to extend his reach

further into the judiciary, and that might shore up some investor

confidence by bringing the nation a little bit closer together. But I

think the wider situation is definitely working against him. I

think that will continue. All right, for now, Michael Greenfield, we

appreciate your time. A business journalist based in Istanbul. Of

course, this is a developing story we will keep you right across on BBC

News. ARM Holdings, one of the UK's

biggest technology companies is set to announce it is being brought

by Japan's Softbank for $32 billion. Rico Hizon is he with us, as you can

see. A huge deal. -- here. Absolutely. First and for most, they

want to make it huge push into the mobile Internet space. According to

people near the deal, they are buying ARM Holdings because it is

well positioned to exploit the Internet market. Everyone knows that

ARM Holdings's microchips are used by many devices, including Apple's

Iphones. This is a good deal because it comes after the UK's decision to

leave the EU, potentially making British companies more attractive

for buyers overseas. SoftBank is also committed to doubling the size

of ARM Holdings's workforce over the next five years. The Japanese tech

giant is one of the biggest, and is run by Yoshi San, and previously

acquired the US telecommunications firm, Sprint. Thank you. A Japanese

company's biggest acquisition ever if that goes ahead. We will keep a

look at that. And now, a familiar topic on this programme. Brexit.

The UK's new minister in charge of Brexit says Britain should be

able to formally trigger its departure under Article 50

Writing in the Sun, David Davis has called for a brisk but measured

approach, with a likely exit from the EU around December 2018.

He's said Canada's trade deal with the EU is a possible blue print

BBC's Andrew Walker has been speaking with Canada's Trade

Minister, and started by asking about the impact Brexit would have

on Canada's relationship with Britain.

We are not just friends of Britain, we consider ourselves family. In my

own personal case, my father was born in Britain. My husband is

British. And one of my three children was born in Britain. And

that is quite common thing for Canadians. We are very close to

Britain and it is a close economic relationship. We export about ?11

billion pounds and we bring in 8 billion. It is a very strong

relationship. We know it will continue. Canada now has a trade

agreement with the European Union known as CETO which hasn't come into

force yet but will soon. How will that affect Canada's relationship

with the UK once they have left the EU? It is hard and wrong to get too

deep into hypotheticals. But, what I think we can say about it if it is a

great agreement and has been negotiated with Britain. We are

working on a timeline that would mean Britain is still part of the EU

as it comes into force. And where we go from there would depend very much

and chiefly on what I think is Britain's chief trade job right now,

figuring out its relationship with the European Union. During the

referendum campaign, some who wanted to leave so that the kind of

relationship Canada has to be the EU will work with Britain once they

leave the EU. Will that work with Britain? That is a political choice.

The kind of trading relationship they choose with other countries is

ultimately, as Britain knows very well having made the choice, is

about politics. CETO is a great deal and an ambitious deal. From the

Canadian perspective it is a deeper relationship in trades and NAFTA is.

It is however not as close a relationship, obviously, is actually

being a member of the EU. Canada's Trade Minister. A bit of news coming

from Tesla. The head of Tesla, Elon Musk,

says he's optimistic a software update can improve the firms

autopilot system on its cars. The electric car company has been

working on changes since May, after one of its sedans failed

to detect a tractor trailer in bright sunlight

and crashed into it. Mr Musk hasn't given any details

on when the update might happen. A quick look at the financial

markets. A brand-new trading week happening in Asia. That figure for

the Nikkei is Friday's closed. They have a public holiday today. No

trade in Japan today. Hong Kong, up slightly. And the yen has weakened

quite a bit in recent days which will help Japan when it reopens

later this week. That is the end of trade on Friday. You can see it is

fairly flat but mixed. Markets are taking it on the chin. They were

concerned about the situation in Turkey on Friday. But people seem to

be a bit more OK about that scenario now. We will talk some more about

that in a minute to look at the papers. I will see you then.