:00:07. > :00:11.Scotland's business and political leaders have been holding
:00:12. > :00:23.talks about the aftermath of the EU referendum.
:00:24. > :00:27.The underlying economy is beginning to show more signs of stress.
:00:28. > :00:34.Our Business and Economy Editor, Douglas Fraser, has more.
:00:35. > :00:39.Yes, the economy was already slowing up before the referendum. Since the
:00:40. > :00:43.Brexit, the warning signs have been flashing more. A poll of British
:00:44. > :00:47.Business Today suggested pessimism about the economy has gone from a
:00:48. > :00:53.quarter of those taking part to nearly half. After the initial shock
:00:54. > :00:56.11 days ago stock markets made up some ground, but some sectors have
:00:57. > :01:04.not including banks and house builders. The pound continued to
:01:05. > :01:06.weaken today having fallen over 10%. That should help exporters.
:01:07. > :01:09.weaken today having fallen over 10%. Uncertainty about what happens next
:01:10. > :01:13.in politics is undermining confidence in the economy.
:01:14. > :01:17.Today Aviva and MMG joined this Edinburgh financial giant
:01:18. > :01:19.with a halt to trading in their UK property fund, fearing that
:01:20. > :01:22.investors would rush to withdraw their stakes
:01:23. > :01:26.destabilising funds for continuing customers.
:01:27. > :01:28.Following the referendum result, the company said market conditions
:01:29. > :01:34.Hopes of selling the Government stakes in Scotland's big banks have
:01:35. > :01:38.been pushed back by the prospect of slower growth and lower earnings.
:01:39. > :01:42.This will be a setback, let's be quite honest.
:01:43. > :01:46.I think at least a couple of years will be pushed back because of it,
:01:47. > :01:48.but markets turn around and go positive as they do as quickly
:01:49. > :01:52.That was the background for meetings today between business
:01:53. > :01:57.The First Minister heard concerns from the main industry bodies.
:01:58. > :02:01.I think there's a number of areas that government could be looking at,
:02:02. > :02:04.to make Scotland a more attractive and competitive place to do
:02:05. > :02:09.business, particularly around tax cuts, around APD,
:02:10. > :02:10.around infrastructure projects and making sure that infrastructure
:02:11. > :02:23.economically and physically, to help do business.
:02:24. > :02:26.Half a mile away trade bodies were out lobbying the UK Government.
:02:27. > :02:29.How do we approach international trade deals quest what do we need
:02:30. > :02:32.to renegotiate those deals or can we put in place mechanisms that
:02:33. > :02:34.allow the benefits we already have two be secure going forward?
:02:35. > :02:38.We need a clear message today to government around making sure
:02:39. > :02:40.we have the best possible access to the single market,
:02:41. > :02:44.as well as making sure the trade deals we have are kept in place.
:02:45. > :02:47.The Scotland Secretary voted last month to remain
:02:48. > :02:57.He says we told you that this would happen.
:02:58. > :03:00.I very much hope that we won't have a recession situation,
:03:01. > :03:03.but we obviously are going to have a period of uncertainty,
:03:04. > :03:06.a period where people will not be keen to invest in projects that may
:03:07. > :03:08.have been going ahead in this period.
:03:09. > :03:11.That is why is important to bring as much certainty in a shorter
:03:12. > :03:19.But I'm not dismissing the challenge of doing that.
:03:20. > :03:22.Wel, the Governor of the Bank of England Mark Carney spoke out
:03:23. > :03:25.for a third time in recent days reassuring us that he is taking
:03:26. > :03:27.measures to ease lending conditions for banks.
:03:28. > :03:29.But he was also warning of the Brexit effect spreading
:03:30. > :03:31.to the housing market and to foreign investment.
:03:32. > :03:38.Well, some foreign investors continue to be big spenders here,
:03:39. > :03:41.this one on golf courses, but Donald Trump's political
:03:42. > :03:43.breakthrough in America means further uncertainties ahead
:03:44. > :03:50.Douglas Fraser there with that report.
:03:51. > :03:52.Meanwhile, the First Minister Nicola Sturgeon has renewed her call
:03:53. > :03:55.for all EU citizens, resident in the UK, to be given
:03:56. > :03:58.She was speaking after talks with diplomats from EU
:03:59. > :04:05.Here's our political correspondent Glenn Campbell.
:04:06. > :04:10.Tourists come from near and far to see the First Minister's
:04:11. > :04:15.Most only catch a glimpse from the outside, but today's
:04:16. > :04:17.visitors included diplomats representing all corners of Europe,
:04:18. > :04:24.invited to share their concerns following the Brexit vote.
:04:25. > :04:29.We are getting a lot of phone calls from people
:04:30. > :04:38.who could become Belgians because they want to drop
:04:39. > :04:39.the British citizenship into the Belgian one.
:04:40. > :04:42.There is panic among Europeans not knowing what will happen next White
:04:43. > :04:46.18 consuls attended talks with the First Minister who stressed
:04:47. > :04:48.that hasn't yet been any change to the status of EU
:04:49. > :05:15.These are concerns that are being communicated to us.
:05:16. > :05:18.I am very keen to get a message across that we value
:05:19. > :05:22.As well as appealing to the UK Government, to give all EU
:05:23. > :05:23.citizens already living here the right to remain,
:05:24. > :05:25.the First Minister is also exploring options to maintain
:05:26. > :05:29.Scotland's links with the EU, even if the rest of the UK is coming
:05:30. > :05:32.out, and she's made clear those options include a possible second
:05:33. > :05:34.Diplomats tend to use diplomatic language about independence,
:05:35. > :05:41.Any question of independence for Scotland is an internal matter
:05:42. > :05:44.for the UK and we would make no comment on that.
:05:45. > :05:50.However, it is clear that were Scotland to be independent,
:05:51. > :05:53.One consul general couldn't resist the temptation.
:05:54. > :06:11.Best to wait and see what happens, he said.
:06:12. > :06:19.Liam Fox has been eliminated from the race to be the next
:06:20. > :06:20.Conservative leader and Prime Minister.
:06:21. > :06:22.Dr Fox, who was born in East Kilbride, finished last
:06:23. > :06:26.Home Secretary Theresa May topped the ballot followed by energy
:06:27. > :06:32.Michael Gove, the Edinburgh-born Justice Secretary,
:06:33. > :06:34.Stephen Crabb, the Inverness-born work and Pensions Secretary,
:06:35. > :06:39.A survivors' group says, it's lost confidence in the Scottish
:06:40. > :06:48.It follows the resignation of chairwoman Susan O'Brien
:06:49. > :06:50.who stepped down after the Deputy First Minister began formal
:06:51. > :06:53.But John Swinney has denied undue interference and insisted
:06:54. > :06:55.the Government was trying to ensure costs associated
:06:56. > :07:05.From 1964 to 1974, Helen Holland was abused at home in Kilmarnock run
:07:06. > :07:08.From 1964 to 1974, Helen Holland was abused at a home in Kilmarnock
:07:09. > :07:11.run by the Catholic order of the Sisters of Nazareth.
:07:12. > :07:13.She now staffs a helpline for survivors of care abuse.
:07:14. > :07:15.Helen views current developments with concern.
:07:16. > :07:17.The survivors who have participated so far have done
:07:18. > :07:22.so with the assurance that this is independent of the government.
:07:23. > :07:25.So if they're now finding out it is not on the government
:07:26. > :07:26.are having involvement where they shouldn't be,
:07:27. > :07:33.then there are major trust issues in relation to that as well.
:07:34. > :07:36.Speaking on Radio Scotland, Deputy First Minister said
:07:37. > :07:39.the Government was required to ensure value for money
:07:40. > :07:41.and questioned the use of QCs to take witness statements
:07:42. > :07:47.But he firmly denied putting cash and control ahead
:07:48. > :07:55.I want to assure survivors today and I will work to do it
:07:56. > :07:57.for the foreseeable future that the inquiry will be free
:07:58. > :08:00.to take all of the evidence, to look into all of the issues it
:08:01. > :08:03.needs to look into without fear or favour and to make
:08:04. > :08:05.sure it does that job properly and comprehensively.
:08:06. > :08:14.In addition to Susan O'Brien, Cambridge Professor Michael Lamb
:08:15. > :08:16.resigned last week also citing government interference.
:08:17. > :08:18.That leaves Glen Houston, a social care expert
:08:19. > :08:22.from Northern Ireland as the only remaining panel member for now.
:08:23. > :08:26.A Government spokeswoman said today that officials had been instructed
:08:27. > :08:28.already to identify replacements for Ms O'Brien and Professor Lamb.
:08:29. > :08:34.She also insisted that evidence gathered so far
:08:35. > :08:36.for the inquiry would stand and that public hearings planned
:08:37. > :08:43.This Scottish head of a national children's charity says it is vital
:08:44. > :08:54.Clearly, until the inquiry is fully staffed again then victims will be
:08:55. > :08:56.concerned, and I think it's important the Government acts
:08:57. > :08:58.swiftly to set the inquiry on a sound footing.
:08:59. > :09:01.Victims will seek those reassurances and more when they meet
:09:02. > :09:09.the Deputy First Minister to see what happens next.
:09:10. > :09:13.Tennis, and Andy Murray says he can't afford to think
:09:14. > :09:18.about the later stages at Wimbledon or he'll get distracted
:09:19. > :09:25.He faces the world number 12 Jo Wilfrid Tsonga of France
:09:26. > :09:37.A memorial to the longest match of all time, 1768 in the fifth
:09:38. > :09:51.Last night they finished after 9pm at 13-13 in the fifth.
:09:52. > :09:53.Surely we're not in for another epic.
:09:54. > :10:00.In fact only another four games were required as Murray and Suarez
:10:01. > :10:08.Yeah, concentrate hard on the next match.
:10:09. > :10:10.It's going to be tough regardless of who we play.
:10:11. > :10:13.But it is going to be a tough match for them as well.
:10:14. > :10:16.I think we're both really excited about it.
:10:17. > :10:23.Little brother is just as excited for him tomorrow a quarter-final
:10:24. > :10:26.against Jo Wilfred Tsonga of France with no thought spared for the big
:10:27. > :10:29.names like Novak Djokovic who've already been knocked out.
:10:30. > :10:32.Those results that have happened don't affect me yet.
:10:33. > :10:39.It's different coming up against someone different to Novak.
:10:40. > :10:51.Tsonga will be tough in the next round as well.
:10:52. > :10:52.It is worth concentrating on those matches.
:10:53. > :10:56.If you get distracted at this level, it can cost you.
:10:57. > :10:59.The Davis Cup won't be a distraction, it's after Wimbledon
:11:00. > :11:02.and both Murray brothers are in the team for the tie
:11:03. > :11:11.Andy says he will wait until after he's done in SW19
:11:12. > :11:15.Well, time now to get the weather forecast for tonight
:11:16. > :11:26.Good evening. It has been unsettled and no real change this week. Why?
:11:27. > :11:30.The jet stream, it steers weather systems our way and its position is
:11:31. > :11:35.fairly flat, it is static. It is not moving north or south. So day after
:11:36. > :11:38.day, we will see weather system after weather system, showers, rain,
:11:39. > :11:41.breezy at times. Remember that it is also the dividing line between the
:11:42. > :11:46.warm air to the south generally and cooler air to the north. We are on
:11:47. > :11:49.the cusp so it is not a complete write off, but yes, changeable. We
:11:50. > :11:53.have seen heavy showers around today, but tonight it is dry. Some
:11:54. > :11:57.clear skies, chilly in the countryside. Tomorrow morning, it is
:11:58. > :12:01.a bright, sunny start for most. A fairly pleasant start to Wednesday.
:12:02. > :12:05.Here are the temperatures at 8am. Around about 11 or 12 Celsius. Light
:12:06. > :12:09.winds and a fairly decent start to the day. Perhaps one or two light
:12:10. > :12:14.showers around the north-east coast and the far north, but really, it is
:12:15. > :12:17.a dry morning. But then change as we head through the course of
:12:18. > :12:23.Wednesday. We will start to see cloud thickening in the west as the
:12:24. > :12:27.weather front arrives bringing rain across the Hebrides in towards
:12:28. > :12:30.Argyll. Across the UK as a hole, well for most of England and Wales,
:12:31. > :12:34.it is dry and bright. Some cloud, yes, but also sunshine. But that wet
:12:35. > :12:37.weather edging in across Scotland and indeed Northern Ireland. The
:12:38. > :12:43.further east and south-east that you are, the warmer it will be. For us
:12:44. > :12:47.here in Scotland, 15 to 17 Celsius, but as the rain arrives feeling
:12:48. > :12:53.cool. A soggy night overnight to Thursday,
:12:54. > :12:55.but it clears through smartly. So by Thursday morning, yes, still wet
:12:56. > :13:00.weather for Shetland and the far north, but for many, a dry day.
:13:01. > :13:04.Looking across the UK as a whole on Thursday, you'll notice there is
:13:05. > :13:07.this trailing weather front producing outbreaks of rain for
:13:08. > :13:11.North Wales and Anglesey and towards Cumbria as well, but the Midlands
:13:12. > :13:14.southwards generally drier and for us here in Scotland decent spells of
:13:15. > :13:18.sunshine and temperatures of 21 Celsius. That's the forecast.
:13:19. > :13:22.Our next update is during Breakfast at 6.25am tomorrow morning,
:13:23. > :13:26.but from everyone on the late team, here in Glasgow, and around