18/07/2016

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:00:00. > :00:22.The government tries to reassure investors after the weekend's failed

:00:23. > :00:24.coup attempt but one of the country's most important

:00:25. > :00:32.Does Canada have the answer to the UK's negotiation with Europe?

:00:33. > :00:46.We'll be hearing from the country's Trade Minister.

:00:47. > :00:54.Japan's Softbank is ready to snap up one of Britain's

:00:55. > :01:03.Following the failed military coup in Turkey,

:01:04. > :01:05.the government there is trying to reassure investors

:01:06. > :01:08.that it is in control of the country and the economy.

:01:09. > :01:10.The Turkish Lira tumbled nearly 5% in late trading on Friday,

:01:11. > :01:14.It was the Lira's steepest one day fall since the financial

:01:15. > :01:25.The country's Central Bank has promised to provide unlimited

:01:26. > :01:29.liquidity to banks, and the deputy Prime Minister has taken to social

:01:30. > :01:30.media trying to reassure investors the economy's

:01:31. > :01:34.And there are concerns it could hit the tourism industry hard.

:01:35. > :01:36.A slump in this all important industry has been fuelled

:01:37. > :01:47.In May, foreign arrivals continued to fall, down by more than a third

:01:48. > :02:02.Michael Greenfield is a business journalist in Istanbul.

:02:03. > :02:08.Thank you for being on the programme. Give us your take on the

:02:09. > :02:18.feeling there where you are at the moment. Obviously we are seeing a

:02:19. > :02:25.lot of a lack of confidence going into the markets. The FDI played a

:02:26. > :02:32.huge role inside the Turkish economy, over 2015, $11.5 billion,

:02:33. > :02:36.certainly we are looking at some of that being withdrawn from the

:02:37. > :02:46.economy over 2016. You mentioned tourism as well. There are a few

:02:47. > :02:52.figures flying well, 45%, $1 billion, or even more, over the

:02:53. > :02:55.years. -- around. I am certain after January's attacks and the ones to

:02:56. > :03:02.weeks ago, we have ready experienced some of that downfall and we will

:03:03. > :03:07.see more in the next six months into 2017. A lot of headwinds in Turkey.

:03:08. > :03:15.It would seem that Howerd plays out here onwards is critical in terms of

:03:16. > :03:24.foreign investors' view of how they shooed invest in Turkey. -- how it.

:03:25. > :03:29.-- should. We will see how that changes in terms of how revenue

:03:30. > :03:33.comes into the economy. There have been talks about the overriding

:03:34. > :03:37.issue is being 2-fold in the Turkish economy. The current account deficit

:03:38. > :03:43.deficit has always been quiet large. That has been softened by the inflow

:03:44. > :03:54.of FDI. We also have hot money leaving the economy. 10 billion US

:03:55. > :03:57.dollars that left in 2015. We expect that to continue into that and a 16.

:03:58. > :04:07.That will compound issues with the currency as well. And by FDI you

:04:08. > :04:12.mean foreign direct investment. Only a few years ago Turkey was seen as

:04:13. > :04:16.one of the most exciting emerging economies, and it was getting a lot

:04:17. > :04:22.of attention. Do you think President Erdogan can turn this situation

:04:23. > :04:27.around and regain that sort of view internationally as one of the most

:04:28. > :04:32.exciting places to invest? It is difficult. Obviously, some of these

:04:33. > :04:36.things are out of his control. The geopolitical situation is not

:04:37. > :04:42.favourable and hasn't been for a while. That has been affecting

:04:43. > :04:48.markets. But what we might see, obviously, Erdogan will try and

:04:49. > :04:55.solidify things at home. Obviously, he might try to extend his reach

:04:56. > :05:00.further into the judiciary, and that might shore up some investor

:05:01. > :05:05.confidence by bringing the nation a little bit closer together. But I

:05:06. > :05:11.think the wider situation is definitely working against him. I

:05:12. > :05:13.think that will continue. All right, for now, Michael Greenfield, we

:05:14. > :05:22.appreciate your time. A business journalist based in Istanbul. Of

:05:23. > :05:24.course, this is a developing story we will keep you right across on BBC

:05:25. > :05:25.News. ARM Holdings, one of the UK's

:05:26. > :05:27.biggest technology companies is set to announce it is being brought

:05:28. > :05:41.by Japan's Softbank for $32 billion. Rico Hizon is he with us, as you can

:05:42. > :05:51.see. A huge deal. -- here. Absolutely. First and for most, they

:05:52. > :05:57.want to make it huge push into the mobile Internet space. According to

:05:58. > :06:00.people near the deal, they are buying ARM Holdings because it is

:06:01. > :06:08.well positioned to exploit the Internet market. Everyone knows that

:06:09. > :06:17.ARM Holdings's microchips are used by many devices, including Apple's

:06:18. > :06:25.Iphones. This is a good deal because it comes after the UK's decision to

:06:26. > :06:29.leave the EU, potentially making British companies more attractive

:06:30. > :06:36.for buyers overseas. SoftBank is also committed to doubling the size

:06:37. > :06:43.of ARM Holdings's workforce over the next five years. The Japanese tech

:06:44. > :06:51.giant is one of the biggest, and is run by Yoshi San, and previously

:06:52. > :06:58.acquired the US telecommunications firm, Sprint. Thank you. A Japanese

:06:59. > :07:06.company's biggest acquisition ever if that goes ahead. We will keep a

:07:07. > :07:10.look at that. And now, a familiar topic on this programme. Brexit.

:07:11. > :07:13.The UK's new minister in charge of Brexit says Britain should be

:07:14. > :07:15.able to formally trigger its departure under Article 50

:07:16. > :07:20.Writing in the Sun, David Davis has called for a brisk but measured

:07:21. > :07:22.approach, with a likely exit from the EU around December 2018.

:07:23. > :07:26.He's said Canada's trade deal with the EU is a possible blue print

:07:27. > :07:29.BBC's Andrew Walker has been speaking with Canada's Trade

:07:30. > :07:32.Minister, and started by asking about the impact Brexit would have

:07:33. > :07:39.on Canada's relationship with Britain.

:07:40. > :07:46.We are not just friends of Britain, we consider ourselves family. In my

:07:47. > :07:51.own personal case, my father was born in Britain. My husband is

:07:52. > :07:54.British. And one of my three children was born in Britain. And

:07:55. > :07:59.that is quite common thing for Canadians. We are very close to

:08:00. > :08:08.Britain and it is a close economic relationship. We export about ?11

:08:09. > :08:15.billion pounds and we bring in 8 billion. It is a very strong

:08:16. > :08:24.relationship. We know it will continue. Canada now has a trade

:08:25. > :08:28.agreement with the European Union known as CETO which hasn't come into

:08:29. > :08:32.force yet but will soon. How will that affect Canada's relationship

:08:33. > :08:39.with the UK once they have left the EU? It is hard and wrong to get too

:08:40. > :08:46.deep into hypotheticals. But, what I think we can say about it if it is a

:08:47. > :08:51.great agreement and has been negotiated with Britain. We are

:08:52. > :08:56.working on a timeline that would mean Britain is still part of the EU

:08:57. > :09:01.as it comes into force. And where we go from there would depend very much

:09:02. > :09:05.and chiefly on what I think is Britain's chief trade job right now,

:09:06. > :09:10.figuring out its relationship with the European Union. During the

:09:11. > :09:13.referendum campaign, some who wanted to leave so that the kind of

:09:14. > :09:17.relationship Canada has to be the EU will work with Britain once they

:09:18. > :09:23.leave the EU. Will that work with Britain? That is a political choice.

:09:24. > :09:28.The kind of trading relationship they choose with other countries is

:09:29. > :09:33.ultimately, as Britain knows very well having made the choice, is

:09:34. > :09:40.about politics. CETO is a great deal and an ambitious deal. From the

:09:41. > :09:44.Canadian perspective it is a deeper relationship in trades and NAFTA is.

:09:45. > :09:49.It is however not as close a relationship, obviously, is actually

:09:50. > :09:54.being a member of the EU. Canada's Trade Minister. A bit of news coming

:09:55. > :09:56.from Tesla. The head of Tesla, Elon Musk,

:09:57. > :09:58.says he's optimistic a software update can improve the firms

:09:59. > :10:01.autopilot system on its cars. The electric car company has been

:10:02. > :10:04.working on changes since May, after one of its sedans failed

:10:05. > :10:06.to detect a tractor trailer in bright sunlight

:10:07. > :10:08.and crashed into it. Mr Musk hasn't given any details

:10:09. > :10:23.on when the update might happen. A quick look at the financial

:10:24. > :10:29.markets. A brand-new trading week happening in Asia. That figure for

:10:30. > :10:35.the Nikkei is Friday's closed. They have a public holiday today. No

:10:36. > :10:38.trade in Japan today. Hong Kong, up slightly. And the yen has weakened

:10:39. > :10:43.quite a bit in recent days which will help Japan when it reopens

:10:44. > :10:47.later this week. That is the end of trade on Friday. You can see it is

:10:48. > :10:51.fairly flat but mixed. Markets are taking it on the chin. They were

:10:52. > :10:56.concerned about the situation in Turkey on Friday. But people seem to

:10:57. > :11:00.be a bit more OK about that scenario now. We will talk some more about

:11:01. > :11:07.that in a minute to look at the papers. I will see you then.