:00:10. > :00:15.Hello, this is business live from the BBC. Turkey into a mile, the
:00:16. > :00:20.government tries to reassure investors after the failed military
:00:21. > :00:23.coup. We ask what's next. Live from London that's the top story today on
:00:24. > :00:43.Monday 18th July. In an emotional speech, the
:00:44. > :00:48.president of Turkey has vowed to cleanse the fibres from the Turkish
:00:49. > :00:51.state, despite strong words investors are concerned about his
:00:52. > :00:55.role as leader. We will get an expert outlook on the Turkish
:00:56. > :01:10.economy. Also Japan's should go ahead, despite concern
:01:11. > :01:15.over Britain's decision to leave the EU. We don't have the numbers for
:01:16. > :01:22.you, they are all heading high in Europe, shares in ARM Holdings
:01:23. > :01:25.jumping by a Ford is explicit. Also in the programme, what is it like to
:01:26. > :01:35.drive one of biggest car companies in the
:01:36. > :01:41.UK as a woman. We will be hearing from Linda a little later. And one
:01:42. > :01:46.British firm is trying to find out why a high proportion of people
:01:47. > :01:50.living in Sardinia live to over 100. They have bought the genetic data.
:01:51. > :01:53.We would like to know if you would like to live till over 100 or is
:01:54. > :02:17.this just research for the I am nearly 100, it's the incredible
:02:18. > :02:22.make-up team that fools you! The military coup had failed in key
:02:23. > :02:26.dominated headlines this weekend. The government is trying to reassure
:02:27. > :02:29.investors that the country is under control of the government and the
:02:30. > :02:35.economy and the outlook is sure. Yet the reaction was swift on Friday
:02:36. > :02:39.when this emerged, the Turkish lira tumbling by almost 5%. It has
:02:40. > :02:43.recovered a little since then. This was the biggest one-day fall for the
:02:44. > :02:51.Turkish currency since the financial crisis of 2008. Also the central
:02:52. > :02:55.bank was swift to promise unlimited liquidity for banks and the Deputy
:02:56. > :03:00.Prime Minister has taken to social media, trying to reassure investors
:03:01. > :03:06.that the economy's fundamentals are strong. And of course there is
:03:07. > :03:11.concern about the Turkish economy with the tourist industry, key to
:03:12. > :03:21.economic growth, having had a tough year. If you look at the way things
:03:22. > :03:24.have been since May, the all-important tourist sector
:03:25. > :03:27.slumping by one third on the previous era. That's foreign
:03:28. > :03:35.arrivals continuing to fall. What is the outlook?
:03:36. > :03:38.Joining me now in the studio is Cornelia Meyer, chief executive
:03:39. > :03:40.of Meyer Resources but also on the advisory board
:03:41. > :03:46.A very warm welcome, lovely to see you. We heard about the measures
:03:47. > :03:49.that the government is trying to use to reassure investors,
:03:50. > :03:51.is it enough? I don't think it will do the trick.
:03:52. > :03:55.Let's look at the two dish economy as a whole. Manufacturing is
:03:56. > :03:58.important as well. 3% of global oil supply goes through
:03:59. > :04:01.the Bosporus and another 2.15% comes
:04:02. > :04:13.from pipelines from the Caspian Sea, from Russia and Iran, into
:04:14. > :04:16.Europe. It is a crucially important country.
:04:17. > :04:23.What gives me hard is that it has strong middle-class, a typical
:04:24. > :04:35.middle-class economy, 12,000 dollars a year per capita.
:04:36. > :04:38.It is a strong middle-class which means strong
:04:39. > :04:44.consumer 's but definitely they need to arrests and arrivals. We should
:04:45. > :04:48.be heartened by the fact that the Bosporus was only closed for a
:04:49. > :04:53.couple of hours and then opened again although it is important to
:04:54. > :04:55.Europe what happens there. It's an important time to Europe that we see
:04:56. > :05:01.is stability because you say there is a strong middle-class yet
:05:02. > :05:05.it is polarised. Some are for the government and then there's a strong
:05:06. > :05:08.group which is against it. And add to that the problem with what
:05:09. > :05:15.happened over the weekend, we have had the terrorist
:05:16. > :05:16.attacks in Turkey this year, several in
:05:17. > :05:25.several key locations. Absolutely. What we have to see if that Turkey
:05:26. > :05:30.is the furthest east and post of Nato, the furthest east output
:05:31. > :05:36.have in surgeons but you also have Isil. You never
:05:37. > :05:44.There's a lot of people with guns don't mean well around. And that is
:05:45. > :05:46.difficult. Yes, the government will crack down quite heavily and you
:05:47. > :05:55.know that in Europe we have a very democratic view, but on the other
:05:56. > :05:58.hand we do need to Turkey to be stable. We really do. It is the most
:05:59. > :06:06.We mention that you are on this advisory and the stumble summit.
:06:07. > :06:13.What will you be advising them to deal with the challenges
:06:14. > :06:16.they faced -- the Istanbul summit. We've already had a lot of talks.
:06:17. > :06:22.Our key topic will be geopolitics. We'll do a big
:06:23. > :06:25.panel to look at how geopolitics affects Turkey, but then we will
:06:26. > :06:32.have our usual panels and financial markets where we have London and
:06:33. > :06:37.Frankfurt, all the financial markets, seeing how they interact.
:06:38. > :06:46.with a strong focus on geopolitics, to help investors get a handle on
:06:47. > :06:50.what is going on. Thank you for joining us.
:06:51. > :06:55.We will keep an eye on the situation on Turkey, updating you on what
:06:56. > :06:58.develops. Now some other business stories.
:06:59. > :07:01.The new minister in charge of Brexit says the UK should be able
:07:02. > :07:04.to formally trigger its departure from the EU "before
:07:05. > :07:08.David Davis called for a "brisk but measured" approach,
:07:09. > :07:17.with a likely exit around December 2018.
:07:18. > :07:20.The head of Tesla - Elon Musk - says he's optimistic a software
:07:21. > :07:23.update can improve the firm's autopilot system on its cars.
:07:24. > :07:26.The electric car company has been working on changes since May,
:07:27. > :07:29.after one of its sedans failed to detect a tractor
:07:30. > :07:31.trailer in bright sunlight and crashed into it.
:07:32. > :07:43.Mr Musk hasn't given any details on when the update might happen.
:07:44. > :07:49.We can look at what is on the live page on the website, at the top,
:07:50. > :07:57.Brexit may lead to property caution. Expect occupiers and investors to
:07:58. > :08:02.take a more cautious approach after the referendum result, it says. And
:08:03. > :08:04.the story we have mentioned, arms shares
:08:05. > :08:11.soar -- shares in ARM Holdings are soaring. It really is dominating the
:08:12. > :08:13.UK business News today because it is such a big story. It has been the
:08:14. > :08:18.jewel in the crown of British technology for
:08:19. > :08:22.quite some time. Let's look at it in more detail. The
:08:23. > :08:26.Japanese bank agreeing to buy one of the UK's biggest tech companies.
:08:27. > :08:34.We've been following the story. Karishma Vaswani has been
:08:35. > :08:45.following the story. A pricey punt, as one analyst said
:08:46. > :08:49.to me, and also a big bet on the future, the CEO of the Japanese bank
:08:50. > :08:53.is known for his crazy ideas and with this acquisition it looks as if
:08:54. > :08:56.he is betting on the Internet of things. That means, it's a future
:08:57. > :09:03.where your fridge, your washing machine, even your hairbrush,
:09:04. > :09:07.basically turns into a computer. Everyday objects transformed into
:09:08. > :09:08.intelligent analytical machines. ARM Holdings
:09:09. > :09:16.does not make the chips that power these devices but it does design
:09:17. > :09:19.them, and that is what Softbank is buying, the technology behind the
:09:20. > :09:24.Internet of things. Since Brexit the value of the pound which was been
:09:25. > :09:28.talking about on the channel for the last couple of weeks has fallen and
:09:29. > :09:34.the Japanese yen has strengthened. ARM Holdings may be cheaper. Bank to
:09:35. > :09:37.buy than it was one month ago. While we have seen shares of ARM Holdings
:09:38. > :09:44.in the UK soaring, it is not clear how the Japanese and's shareholders
:09:45. > :09:49.react. Remember that Japanese stock markets are closed today because of
:09:50. > :09:52.a national holiday. The bank is in $100 billion worth of debt and an
:09:53. > :09:57.expensive acquisition may not be what shareholders want now. How do
:09:58. > :10:03.you think this will be food there, is it a vote of confidence in
:10:04. > :10:09.post-Brexit Britain, or just trying to strike while the pound is weak --
:10:10. > :10:13.how will this be viewed? I think it is very much about what the Japanese
:10:14. > :10:25.bank sees its business strategy as in the future. I do not think this
:10:26. > :10:30.decision by the CEO of Softbank was taken because of Brexit alone. I
:10:31. > :10:32.think it may be cheaper than it was just before Brexit because of the
:10:33. > :10:36.weakness in the British band that may have factored into the
:10:37. > :10:39.ultimate decision that has come through -- in the British pound.
:10:40. > :10:53.Thank you for your thoughts. action in Tokyo today, given that
:10:54. > :10:56.ARM Holdings story, we will see a reaction in Japan when it reopens.
:10:57. > :10:58.Hong Kong up slightly. This is the way that Europe is
:10:59. > :11:04.trading now. The big winner today is ARM Holdings, up Ford is
:11:05. > :11:17.exposing to be open. -- up 46%. The offer that came
:11:18. > :11:19.through from Softbank was around ?17 a share. Markets reacted
:11:20. > :11:22.immediately. We are seeing gains
:11:23. > :11:27.across-the-board. We'll talk you through some of the reasons why, in
:11:28. > :11:31.a moment, first, let's get the text to Wall Street in what we can expect
:11:32. > :11:39.in New York as we start the trading week.
:11:40. > :11:46.Donald Trump is scheduled to accept the nomination from his party as
:11:47. > :11:50.president on July 21. Banks will continue reporting this week,
:11:51. > :11:53.kicking things off on Monday will be the Bank of America followed by
:11:54. > :11:59.Goldman Sachs on Tuesday and Morgan Stanley on Wednesday. Because of
:12:00. > :12:02.market volatility and ultra low US interest rates, banks have been
:12:03. > :12:08.under pressure. Investors are keeping expectations low the coming
:12:09. > :12:10.quarters. A few other companies reporting this week, America's
:12:11. > :12:16.largest car maker, General Motors, Microsoft, Novartis and family
:12:17. > :12:21.streaming service Netflix. Joining us is Trevor Greetham,
:12:22. > :12:36.Head of Multi Asset Good morning. A bit of excitement.
:12:37. > :12:40.It is worth bearing in mind that ARM Holdings is a massive American
:12:41. > :12:45.dollar earner and its share price already went up after Stirling
:12:46. > :12:45.depreciated. about the currency angle, it is more
:12:46. > :12:55.that the Japanese yen has been the Gijon's strongest currency
:12:56. > :12:55.over the year and we are about to see this
:12:56. > :12:58.long awaited bazooka from the bank of Japan
:12:59. > :13:02.and the government, the fiscal manager is diminished.
:13:03. > :13:05.Softbank is thinking, let's get in there while the yen is strong
:13:06. > :13:11.pound is low. It seems that timing is everything, in terms of
:13:12. > :13:15.timing while Theresa May is our new Prime
:13:16. > :13:16.Minister, her thoughts about companies taking over other
:13:17. > :13:19.companies? She has only said they will be scrutiny of
:13:20. > :13:21.this morning Philip Hammond has tweeted
:13:22. > :13:27.that Britain is open for business and has lost none
:13:28. > :13:29.of its allure. When it comes to selling the
:13:30. > :13:32.family silver presence and jobs in the UK!
:13:33. > :13:43.Interesting point, some of the overdue as they are making, they
:13:44. > :13:45.plan to double the UK workforce and keep
:13:46. > :13:50.ahead, presumably sensitive to the concerns that might follow?
:13:51. > :13:53.Bear in mind that ARM Holdings employ 4000 people so it won't
:13:54. > :13:55.change much in UK unemployment although it
:13:56. > :14:04.is a positive story. In general, your thoughts, we are
:14:05. > :14:07.waiting for news on how the UK economy is doing after Brexit.
:14:08. > :14:11.So far it hasn't been great, housing surveys, consumer confidence, other
:14:12. > :14:19.things Nirvana stayed where they've had a
:14:20. > :14:19.lot of stimulus talks thrown at them and we
:14:20. > :14:24.haven't yet seen the bad data, it's like coming to A E and getting an
:14:25. > :14:26.injection and you feel good to start with, I feel we will see worse
:14:27. > :14:30.economic data. The Bank of England can offset the
:14:31. > :14:33.shock value structural hit and they will not be
:14:34. > :14:37.able to offset that damage. We should see a slow is
:14:38. > :14:42.economy. I welcome the fact that fiscal austerity is over. I think
:14:43. > :14:50.the Brexit Again it would be easier to reverse
:14:51. > :14:52.austerity if we stayed in the EU because we want have more
:14:53. > :14:56.money to share! It would seem that we are not!
:14:57. > :15:00.I don't know about when you have had injections but I always get a
:15:01. > :15:05.arm to begin with! Lovely to seal. Travel will be back soon.
:15:06. > :15:09.He's got more to do. Still to come, what
:15:10. > :15:16.is it like to be a woman in a man's world? We'll be speaking to the only
:15:17. > :15:37.female ever to become the boss of a French car company later on.
:15:38. > :15:39.The financial and economic implications of Brexit
:15:40. > :15:42.Two reports out today paint a fairly gloomy picture.
:15:43. > :15:44.Joining us from the Business Newsroom is Andrew Walker,
:15:45. > :15:51.Well, we have got the ITEM Club which is economists that put
:15:52. > :15:54.together forecasts. They are predicting a mark slowdown in growth
:15:55. > :15:59.in the British economy in the aftermath of the referendum vote,
:16:00. > :16:05.1.9% for this year, not so bad, but down to 0.4% in 2017, and then
:16:06. > :16:10.picking up a bit to 1.4% the year after. They do note that there will
:16:11. > :16:14.be some benefit for exporters sart of the decline in the value of
:16:15. > :16:17.sterling, but they expect to see some significant slowdown in
:16:18. > :16:22.business investment. The other report picks up on that theme of
:16:23. > :16:26.business investment. And that is from the accountants Deloitte. They
:16:27. > :16:32.have been doing a survey of chief financial officers at some of the
:16:33. > :16:36.companies in the FTSE 350 index and large privately owned companies and
:16:37. > :16:40.they found that 82% of the finance chiefs that they surveyed are
:16:41. > :16:44.expecting to cut back on capital investment spending in the near
:16:45. > :16:51.future. That's up from a figure of 34% when they did it a few months
:16:52. > :16:55.ago. So, not entirely down to the referendum result, but Deloitte
:16:56. > :16:59.think that's the major factor in the pronounced increase in people
:17:00. > :17:03.planning to cut back on investment spending. We get the information now
:17:04. > :17:09.given the fact that the Bank of England chose to do nothing last
:17:10. > :17:12.week? Yes, isn't it just? The EY item forecast is very much the Bank
:17:13. > :17:15.of England will cut interest rates and we have had strong indications
:17:16. > :17:20.that it is likely to happen in August. Also worth mentions that the
:17:21. > :17:24.survey of chief financial officers was done at a time when uncertainty
:17:25. > :17:29.was at its greatest after the vote, but before we knew who the new Prime
:17:30. > :17:32.Minister was going to be, there is a bit of political stability comeback
:17:33. > :17:35.which could affect the view that some of the finance chiefs take
:17:36. > :17:38.going forward. Andrew, for now, thank you very much indeed. Two
:17:39. > :17:43.interesting surveys out today, that he highlighted there.
:17:44. > :17:46.There is more details on the website or the app. You can look at the live
:17:47. > :17:56.page. Our top story, the Turkish lira
:17:57. > :18:04.has recovered ground in the Asia trading session
:18:05. > :18:07.following a failed military coup. The country's president has vowed
:18:08. > :18:22.to "cleanse the virus" Lots more information on our
:18:23. > :18:25.website. It is changing rapidly. So we will update you.
:18:26. > :18:28.Let's get the Inside Track on an industry which is
:18:29. > :18:31.attempting to "jump-start" its stalled reputation.
:18:32. > :18:33.The diesel emissions scandal has rocked the motoring sector and now
:18:34. > :18:36.manufacturers are looking towards electric as an
:18:37. > :18:40.The French car giant, Peugeot Citroen, has unveiled
:18:41. > :18:42.an ambitious five-year plan which will see the company develop
:18:43. > :18:44.seven plug-in hybrids and four electric vehicles.
:18:45. > :18:47.The group has also become the first carmaker to publish "real-world"
:18:48. > :18:54.Despite this, like many other European manufacturers,
:18:55. > :18:55.Brexit poses a threat to Citroen's business.
:18:56. > :19:03.Britain is the French carmaker's third biggest market.
:19:04. > :19:05.Citroen's CEO is Linda Jackson, an industry veteran who's worked
:19:06. > :19:09.Recently, she was voted the most influential British woman
:19:10. > :19:16.Earlier, the BBC's Victoria Fritz caught up with the boss of Citroen.
:19:17. > :19:18.She started off by asking whether a slowdown in Europe
:19:19. > :19:28.and China posed a threat to the company.
:19:29. > :19:35.Of course, we look at the size of the markets,
:19:36. > :19:39.but if we take China, for example, yes, it slowed down it is not
:19:40. > :19:45.the double digit increases that we were seeing two or three
:19:46. > :19:51.So there is still a market there and I think it is about for us,
:19:52. > :19:54.it is about making sure that we are flexible as a company,
:19:55. > :19:57.to be able to profitable and to produce vehicles that people
:19:58. > :20:07.will want to give them an experience that they want,
:20:08. > :20:10.recognising that the world is chaothic, that's the way
:20:11. > :20:13.the world is now and Europe is stable in terms of the of
:20:14. > :20:16.it is not double digit, but it is single digits,
:20:17. > :20:19.there is lots of places that we as a company are not present
:20:20. > :20:22.so for example in parts of South East Asia where we're not
:20:23. > :20:24.present so there is plenty of opportunities so I think
:20:25. > :20:27.it is about you accept the market is like that.
:20:28. > :20:30.I don't think there is going to be a sudden drop completely in
:20:31. > :20:34.How much has the diesels emissions scandal really
:20:35. > :20:38.You need to be careful because before anything blew up
:20:39. > :20:41.in term of the Volkswagen issue, we had already seen the diesel
:20:42. > :20:52.market going down slightly and it is a steady trend.
:20:53. > :20:54.For me, in the future, what will change in terms
:20:55. > :20:57.of that is what legislation comes out because at the end
:20:58. > :21:01.of the day for me it is not manufacturers certainly not,
:21:02. > :21:05.but it is going to be what government legislation,
:21:06. > :21:11.We have some towns and cities declaring there will be no cars
:21:12. > :21:14.by 2025 there will only be electric cars, we're saying OK,
:21:15. > :21:17.we're going to have many options for our customers so we can react
:21:18. > :21:20.whatever the legislation maybe and that means that we have very
:21:21. > :21:22.clean diesel and petrol engines, new generation, award winning ones,
:21:23. > :21:27.we have electric strategies so we have electric vehicles.
:21:28. > :21:33.We will have electric vehicles even more by 2019,
:21:34. > :21:36.and we have what we call plug-in hybrid electric vehicles
:21:37. > :21:39.so the customer will have a choice depending on his circumstances
:21:40. > :21:41.Do you think your industry is sexist?
:21:42. > :21:44.I don't think it is sexist, but do we have enough
:21:45. > :21:49.I'm often asked this question and I don't have the answer for it
:21:50. > :21:52.as to why they are at not, why are there not more women?
:21:53. > :21:56.When you look at who buys cars, 50% of my customers are women.
:21:57. > :21:59.When you look at who is behind the decision to choose the car,
:22:00. > :22:13.Because we choose all those things. So why are women not interested in
:22:14. > :22:17.entering the automotive industry? It probably goes back historically to
:22:18. > :22:23.be, it was seen as a macho world, very engineering led. And it is not
:22:24. > :22:26.anywhere? I'm not an engineer and you know I understand how a car
:22:27. > :22:31.works, but I am not somebody that's going to open the bonnet and tinker
:22:32. > :22:35.around and really get into that. I see more women coming up through
:22:36. > :22:39.younger women coming up, but there is still a lot of work to do in
:22:40. > :22:42.terms of, you know, at the end of the day, why are there not more
:22:43. > :22:46.women? Well, one of the reasons, it is about trying to find the life
:22:47. > :22:51.balance. Do you think you manage your work-life balance personally?
:22:52. > :22:53.Have I personally? Well, I have step-children, I don't have a
:22:54. > :23:00.family, I didn't have any children of my own and that was a choice and
:23:01. > :23:04.that's about basically I don't think it is fair and I don't think it is
:23:05. > :23:09.possible to be able to do the job I do right now, it is an enormous job,
:23:10. > :23:14.you know, it is 180% of your time and you have to make those choices
:23:15. > :23:18.and you know, I always congratulate people and I encourage people who
:23:19. > :23:28.are trying to do both, but it is very, very difficult.
:23:29. > :23:33.That was Linda Jackson there the boss of Peugeot Citroen.
:23:34. > :23:37.Let's see what other stories are being talked
:23:38. > :23:38.What other business stories has the media been
:23:39. > :23:42.Trevor Greetham Head of Multi Asset at Royal London Asset Management,
:23:43. > :23:50.Let's talk about Tata Steel. This is a story we plucked from the Sunday
:23:51. > :23:57.papers. It is the Sunday Telegraph talking about the sort of
:23:58. > :24:01.negotiations and failed negotiations going on between Liberty Group which
:24:02. > :24:05.really wanted, it was very interested in Tata Steel's
:24:06. > :24:10.operations in Port Talbot. Now it looks like Tata are doing a deal
:24:11. > :24:14.with a German company. Again, Tata Steel is a foreign currency earner
:24:15. > :24:19.from Theresa May's point of view, she will be desperate to keep steel
:24:20. > :24:24.capacity open to earn foreign currency. So any deal that's struck,
:24:25. > :24:32.there will be a lot of scrutiny and politically it is a hot potato and
:24:33. > :24:37.interestingly, it seems what Tata are saying is well, maybe we'll hang
:24:38. > :24:41.on to this asset and go into a joint venture rather than selling it. This
:24:42. > :24:45.could be a pretty profitable facility later on. It is quite an
:24:46. > :24:51.interesting turn around isn't it? When you think about in March of
:24:52. > :24:57.this year when Tata Steel were put up for sale and it looked desperate.
:24:58. > :25:02.It looked like thousands and thousands of jobs were about to go
:25:03. > :25:05.and now here we are, where we are. A big currency devaluation helps in a
:25:06. > :25:13.commodity industry like steel. Let's move on to this one. The secrets of
:25:14. > :25:19.living to over 100. A British Biotech firm is trying to discover
:25:20. > :25:22.that will. There was gathered the data of 13,000 residents in
:25:23. > :25:27.Sardinia. What do you think? I have a view on this. There is a
:25:28. > :25:32.difference between mortality and more bidity which when you are
:25:33. > :25:35.alive, but can't do much! People are living longer and they have got to
:25:36. > :25:39.be healthy and more active and there is evidence that people are healthy
:25:40. > :25:44.and more active and I wonder whether or not after looking at the gene
:25:45. > :25:49.pool in Sardinia, they will find out that people walk a lot and exercise
:25:50. > :25:54.and diet were more of the issue. Gosh, exercise and diet. I nearly
:25:55. > :25:58.brought my gym kit, but I left it at home!
:25:59. > :26:00.Thank you for coming in. And thank you for your company. That's another
:26:01. > :26:05.Business Live. We will see you tomorrow. Bye-bye.