:00:00. > :00:00.Those are the latest headlines from BBC World News.
:00:00. > :00:19.Now for the latest financial news with the World Business Report.
:00:20. > :00:21.The Brexit aftershocks, the pounds slump escalates as China
:00:22. > :00:24.steps in to weaken its currency, the Japanese government is closely
:00:25. > :00:29.Britain's Chancellor of the Exchequer, George Osborne,
:00:30. > :00:32.will seek to bring some calm before the European trading day begins
:00:33. > :00:40.setting out his actions to protect the UK economy.
:00:41. > :00:49.Welcome to World Business Report, I'm Sally Bundock.
:00:50. > :00:52.Also in the programme: As the big banks prepare to shift their staff
:00:53. > :00:56.from the City of London, we take a closer look at what Brexit
:00:57. > :00:59.But first, China, Japan and South Korea have all expressed
:01:00. > :01:01.concern about the impact on the global economy of Britain's
:01:02. > :01:05.The pound is falling further today adding to Friday's
:01:06. > :01:08.Britain's Chancellor of the Exchequer, George Osbourne,
:01:09. > :01:11.is expected to address market unease before trading gets under way
:01:12. > :01:25.And over the weekend the head of the International Monetary Fund,
:01:26. > :01:27.Christine Lagarde, said financial markets had vastly underestimated
:01:28. > :01:30.the outcome of the British vote, but so far there was no panic.
:01:31. > :01:32.Financial markets in Asia are regaining some of
:01:33. > :01:37.The stock market in Tokyo has recovered from a battering that saw
:01:38. > :01:43.more than $2 trillion wiped off global financial markets.
:01:44. > :01:45.The Japanese Prime Minister Shinzo Abe has held an emergency meeting
:01:46. > :01:51.with the Bank of Japan to ensure the markets remain calm.
:01:52. > :01:57.Mariko Oi is in Tokyo for us outside the Stock Exchange,
:01:58. > :02:01.and there are concerns about the strength of the Yen?
:02:02. > :02:15.The pound is losing ground, but gold is a safe haven. Shinzo Abe has held
:02:16. > :02:26.an emergency meeting to assess the situation. We cross live to Tokyo.
:02:27. > :02:28.We were thinking there could be some possible manoeuvring from the
:02:29. > :02:38.authorities in Japan, but not as yet? Not yet. As you said, Japan's
:02:39. > :02:45.stock market has managed to stay in the positive territory. That is
:02:46. > :02:52.after falling from 8% on Friday. That fall was a bigger than the
:02:53. > :02:57.global financial crisis and the earthquake in 2011. It is difficult
:02:58. > :03:00.to guess whether investors are bargain hunting or whether they
:03:01. > :03:06.thought that the panic sell on Friday was too much, or if the Prime
:03:07. > :03:12.Minister's repeated promise that the government is ready to intervene if
:03:13. > :03:15.necessary has come to the market. The yen seems to have stabilised, it
:03:16. > :03:24.is strengthening against the US dollar. We are still seen around 101
:03:25. > :03:29.against the US dollar, which is OK from the government's point of view.
:03:30. > :03:34.It helps exporters because it makes their products cheaper and more
:03:35. > :03:38.competitive abroad. The government is monitoring the situation, but so
:03:39. > :03:39.far no intervention. The fallout from Brexit could have
:03:40. > :03:41.serious implications The BBC understands HSBC is expected
:03:42. > :03:46.to move up to 1,000 staff from London to Paris,
:03:47. > :03:47.following Britain's President Francois Hollande
:03:48. > :03:56.of France has said his country, together with Germany,
:03:57. > :03:58.should take the initiative. Tanya Beckett is in
:03:59. > :04:17.Frankfurt for us. You've been out since Friday, tell
:04:18. > :04:23.us what the mood is at the moment? The initial reaction was one of
:04:24. > :04:27.shock. I have spoken to plenty of Germans over the weekend who express
:04:28. > :04:36.some Euroscepticism. It is mostly around the functioning of the EU and
:04:37. > :04:40.Russells appears to have felt that of late, that they are more
:04:41. > :04:49.therefore the purpose of the EU than for the purpose of the people --
:04:50. > :05:02.Brussels. -- there for. It is damaging to the block, it was
:05:03. > :05:15.Britain has been a very strong ally of Germany. -- bloc -- because. In
:05:16. > :05:19.the meantime, we are all aware of the rivalry between Frankfurt and
:05:20. > :05:24.London when it comes to financial services and staffing. Frank that
:05:25. > :05:29.could be viewed as a winner from this outcome? Yes, although it might
:05:30. > :05:34.have economic concerns in the broader picture. But Frankfurt is
:05:35. > :05:39.dwarfed by friends in London in terms of the number of people
:05:40. > :05:45.employed here. That has improved enormously in recent years. I lived
:05:46. > :05:49.here in the 90s, working as an investment banker. I had a look
:05:50. > :05:58.around over the weekend to see how things had changed. When I lived in
:05:59. > :06:02.Frankfurt in the 1990s, it was impossible to buy anything after
:06:03. > :06:07.lunchtime on Saturday, because everything was shut. Look at it now!
:06:08. > :06:13.German Labour market reform has changed everything. The centre of
:06:14. > :06:17.Frankfurt is awash with consumers. And with a more global outlook, the
:06:18. > :06:32.city celebrates not just German but international culture. This is
:06:33. > :06:39.Frank's iconic square and an absolute tourist magnet. --
:06:40. > :06:48.Frankfurt's. Behind the traditional facade, Germany's financial hub has
:06:49. > :06:54.a modern agenda. It might be too soon to celebrate a windfall for
:06:55. > :07:02.Frankfurt's banks, but this is a city that has long coveted a bigger
:07:03. > :07:07.future. The skyline has grown enormously in stature in the last 20
:07:08. > :07:14.years, but as a financial centre it is still dwarfed by a European
:07:15. > :07:21.rivals such as Paris and London. It is about to find out whether it has
:07:22. > :07:22.built an appeal to capitalise on Britain's departure from the
:07:23. > :07:29.European Union. We will hear from Frankfurt again
:07:30. > :07:31.later in the show. We've heard a lot about the market
:07:32. > :07:34.reaction from around the world, but what about the challenges facing
:07:35. > :07:37.the British government over Brexit? Chancellor George Osborne
:07:38. > :07:39.is due to speak shortly, Will he announce
:07:40. > :07:51.an emergency budget? With me is David Owen,
:07:52. > :08:01.Chief European Financial Economist, We don't know if it will be a press
:08:02. > :08:09.conference or just a statement, what do you think he will say? Well, he
:08:10. > :08:12.has been in constant contact with the Bank of England, they will be
:08:13. > :08:19.trying to keep everything afloat and try to stress that things are not
:08:20. > :08:24.quite so bad on the economic front. Hopefully the economy will get
:08:25. > :08:27.through it. There will be no emergency budget, that is clear.
:08:28. > :08:33.Tell us about that. It was very clear from him and other ministers
:08:34. > :08:39.prior to last Thursday that that was going to happen quickly after a vote
:08:40. > :08:47.to Leave? Some people called it a punishment of budget? It won't
:08:48. > :08:51.happen immediately. If the UK does slip back into a recession and we
:08:52. > :08:56.have lower growth as we have to engineer our exit from the EU, then
:08:57. > :09:01.the position will be much worse. We know that when it comes to next
:09:02. > :09:09.March, they are going to have to address these issues and possibly
:09:10. > :09:15.delay how long it takes to get back to balance. There may be some
:09:16. > :09:20.additional austerity. What they are trying to do is make sure the
:09:21. > :09:27.economy doesn't slide back into a serious recession. What do you think
:09:28. > :09:31.will happen to the UK economy? On Friday, one of the main economic
:09:32. > :09:37.agencies downgraded the UK? I think we will fight back to a temporary
:09:38. > :09:43.recession in the later quarters of the year. It will be a slow
:09:44. > :09:48.recovery. We have the process of negotiation to exit, it will
:09:49. > :09:59.heighten uncertainty. It will be October at the earliest before
:10:00. > :10:10.Article 50 is enacted. And what about Europe? In some ways, the
:10:11. > :10:18.fallout for the rest of Europe could be much more serious. What a lot of
:10:19. > :10:25.economists have argued is that they may need to close the union. But
:10:26. > :10:31.that is a long way out. Buying bonds as it were on Friday will continue.
:10:32. > :10:38.The banking sector in some countries is quite exposed in this situation.
:10:39. > :10:46.Thank you for your time. A lot more detail on this story on our website.
:10:47. > :10:49.In other news: A giant Chinese container ship has become the first
:10:50. > :10:52.vessel to move from the Atlantic to the Pacific Ocean
:10:53. > :10:56.The ship was greeted with fireworks and cheers from a crowd that had
:10:57. > :10:58.gathered at the Cocoli locks to celebrate.
:10:59. > :11:00.The Panamanian President, Juan Carlos Varela, described
:11:01. > :11:02.the waterway as a route that would unite the world.
:11:03. > :11:04.Britain is likely to enter a recession within the year
:11:05. > :11:08.as a result of last week's vote to Leave the European Union,
:11:09. > :11:09.according to Goldman Sachs' economists.
:11:10. > :11:11.They bank also says that the decision could stunt global
:11:12. > :11:15.Goldman Sachs estimates that the Leave outcome will chop
:11:16. > :11:17.a cumulative 2.75% off UK gross domestic product in
:11:18. > :11:28.There will also be knock-on effects in the US and European economies.
:11:29. > :11:36.We will talk some more about this in a moment when we look at the papers.
:11:37. > :11:44.Stay with us. Eight children and two adults have
:11:45. > :11:48.been injured after a rollercoaster