waker-uz-zaman army chief general waker—uz—zaman said an interim government has been formed and they will be justice for the deaths that have happened, the hundreds of deaths that have happened in the last few days. he said yes to political parties and is inviting them to cooperate. again, there were thousands of protesters who protested on the streets of dhaka and these demonstrations have forced the resignation of sheikh hasina. she is now in india and her residence has been looted by protesters. you'll be showing you images throughout the last few hours of people celebrating that victory. now, please do stay with us here on bbc news. we also have more reporting and analysis from our correspondents on the bbc news website and app, and they will be more to come here. but for now,

let's go to my colleague here in the studio with news on business. welcome to business today. i'm mark lobel. it's been a turbulent morning for global stock markets. financial markets are in turmoil, with japan's nikkei having its biggest one day drop ever on the back of major sell—offs on wall street last week. they closed 12.4% lower. jaw—dropping stuff. in the last few hours, it's been confirmed that european markets are following suit. the ftse 100 suffers its worst drop in over a year, though european stocks are falling more generally at a lower pace. what's behind this are fears of the impact of a slowing us economy on the back of weaker than expected jobs numbers on friday. let's have a look at how the numbers have been stacking up in the past 15 minutes. the ftse is down 2.1% since opening a few hours ago. in germany, down

2.41%. let's have a look at how the markets closed in asia. as you can see, then down a startling 12.4%. the nasdaq is down 2.43%. mariko oi, in our asia business hub, has been explaining why we saw this gigantic sell—off in tokyo. well, it's been a total bloodbath today. from japan, south korea to taiwan, shares fell sharply, the nikkei 225 ending the day 12.5% lower. it's the biggest point fall in history. bigger than covid, bigger than that huge earthquake that hit the nation in 2011. bigger even than black monday of 1987. now, forjapanese investors, their biggest concern is the sudden jump in the value of the japanese yen. as we discussed last

week, the bank ofjapan, the country's central bank, raised interest rates for the second time this year to 0.25%, which is still quite low compared to the rest of the world. but it was enough to prop up the value of the japanese currency. now, the stronger currency is exactly what the japanese authorities wanted, because they said the yen was getting too weak and that was making the cost of imports for things like fuel and food more expensive. but as a nation of exporters, the stronger yen also makes japanese products more expensive abroad, and that's why their shares have been hit. also, the higher rates injapan makes shares in tokyo more expensive forforeign investors. what's also interesting is that there are many more retail investors in the country today, because until now, people injapan are known not to invest much in the stock market, and they were more inclined to keep their assets in cash or in the bank account. but the japanese government has been encouraging them to invest by pushing a tax free stock investment programme. and those retail investors,

they have been panicking with this latest sell—off. let's get to grips with what's going on as european stocks tumble too. joining me now is the investment director at stock brokers aj bell, russ mould. russ, this appears quite dramatic. why has this market sell—off continued at pace on monday? i think, the first question, the first point to remember, is where we were before this started. japan was that a record high, america was at a record high, the technology shares in particular had had a brilliant performance. we have had a sharp rise and even with the losses that we have had, the nasdaq is back to work was injune, japan to work was in the last year. markets have been pricing in, cooling of inflation, a soft landing for economies and

interest—rate cuts from central banks. that is a dream scenario, makes everything look wonderful, but any deviation from that perfect pap, thatis any deviation from that perfect pap, that is when you get trouble. the rate cuts are not coming through as quickly as expected and now we have these worries that may be the us economy is not as strong as everybody hoped. figs economy is not as strong as everybody hoped.— economy is not as strong as everybody hoped. as part of that soft landing. _ everybody hoped. as part of that soft landing, us _ everybody hoped. as part of that soft landing, us rate _ everybody hoped. as part of that soft landing, us rate cuts - everybody hoped. as part of that soft landing, us rate cuts were l soft landing, us rate cuts were expected but are you saying they haven't dissipated because they have in common quickly enough? if anything it is the middle of the year, a few months ago, the market was overheating. you have thejoe biden inflation reduction act pouring huge amounts of government stimulus into the economy. global trade flows were reasonable, american firms are thriving, particularly in technology and potentially benefiting from sanctions on china. we have now seen

as a marked softening in the employment rate, a decrease injob vacancies, the new housing market is a bit of a mess and the manufacturing data showed a weakness in orders. the federal reserve, saying they are looking at the numbers, is looking at the rear view mirror, but they should be looking at two years's time. there is a chance of federal reserve error, you could dare say. this chance of federal reserve error, you could dare say-— could dare say. this has been described _ could dare say. this has been described as _ could dare say. this has been described as a _ could dare say. this has been described as a healthy - could dare say. this has been - described as a healthy correction. do you expect this ball out to be contained?— do you expect this ball out to be contained? , , , , , ., contained? these summer stumbles are alwa s contained? these summer stumbles are always difficult — contained? these summer stumbles are always difficult to _ contained? these summer stumbles are always difficult to gauge _ contained? these summer stumbles are always difficult to gauge because - always difficult to gauge because you tend to find the big hitters tend to be on the beach now and they have left theirjuniors and deputies in charge. you can get some extreme movements when there isn't a lot of liquidity out there. we will probably only really find out in the

autumn when we get the next round of results from companies and the federal reserve, and then what is happening with regards to inflation. those three things will help sentiment strongly going forwards. we have had a brilliant run and american shares have been particularly expensive. the european shares have not done as well that is whether or not done as much. explain --eole whether or not done as much. explain eo - ie the whether or not done as much. explain people the surge _ whether or not done as much. explain people the surge in — whether or not done as much. explain people the surge in the _ whether or not done as much. explain people the surge in the yen _ whether or not done as much. explain people the surge in the yen and - whether or not done as much. explain people the surge in the yen and the l people the surge in the yen and the swiss franc, why some currencies are rising? swiss franc, why some currencies are risinu? ., swiss franc, why some currencies are risinu? . ., ., swiss franc, why some currencies are risinu? ., ., , rising? japan has held that interest rates in negative _ rising? japan has held that interest rates in negative territory - rising? japan has held that interest rates in negative territory for - rising? japan has held that interest rates in negative territory for the l rates in negative territory for the last 15 or 20 years. it is now slowly nudge them into small positive territory, at 0.5%. some institutional investors they borrow institutional investors they borrow in the end because the borrowing costs there were negative, you're almost getting paid to borrow in yen, and using that money to invest in assets around the world. that is

fine as long as the yen is going down because you're making money on the yen and your assets overseas. if you start losing money on the yen, you start losing money on the yen, you may be forced to return the yen you may be forced to return the yen you have borrowed, stop borrowing those jane and then sell the petitions in london with that yen borrowing. the virtuous circle of cheap yen, low interest rates, liquidity, has become a vicious circle of more expensive yen and the money having to go back into japan. thank you so much. thank you for all that analysis. all eyes will be on the opening bell in the us injust a couple of hours. let's get back to our breaking news from bangladesh, where after weeks of protests

and violent clashes, in which hundreds of people have been killed. bangladesh's prime minister has resigned and reportedly left the country. the army chief has just announced it will form an interim government. a little earlier, thousands of anti—government protesters stormed the official residence of the prime minister. television pictures showed protesters inside the building and then looting it. the army chief is reported to be holding talks with political parties and civil society activists to form a new administration. television pictures showed protesters inside the building and then looting it. the army chief is reported to be holding talks with political parties and civil society activists to form a new administration. you can see you can see crowds you can see crowds there are jubilant and part of that is because how historic moment this days, the scale of their victory can't be

understated. what it means for the country, we don't know yet. let's speak to aditya raj kaul, a journalist at the tv9 nework in india and he has been following the story in bangladesh. thank you so much forjoining us. first, given the iron grip that sheikh hasina has had on the country since 2009, and also simply the figure that she has represented in bangladesh, could you put into perspective what a huge moment this is for the country?— is for the country? well, this is as bi as is for the country? well, this is as big as bangladesh's _ is for the country? well, this is as j big as bangladesh's independence itself. the forces have been defeated completely. it started with a pro war really, when the student

agitators came together, guns blazing against the sheikh hasina government, asking for the removal of the reservation ofjobs. while the protests increased across bangladesh, there were some steps in some corrections done by the sheikh hasina government. at a second wave of protests escalated in bangladesh, clearly indicating that they were not going to stop and the prime minister would have to resign. 0n minister would have to resign. on sunday, more than a hundred people were killed all across the country. there were several mills and textile units that were set ablaze. normal functioning was completely sharp and since xp and yesterday the internet

has been shut down across the country. this morning there were fewer developments. sheikh hasina was persuaded by the army chief to resign. she was escorted by the army to a safe location. many people think she has arrived in india. there are others that claim that she might end up in london. traditionally, india and bangladesh have had a strategic partnership. india had a big role in the independence of bangladesh many decades ago. sheikh hasina has also had close ties with the indian government. we will have to wait and watch out sheikh hasina will take refuge. the army will use this interim government periods to have some kind of normalcy and peace in

place. we some kind of normalcy and peace in lace, . . ., , some kind of normalcy and peace in lacer . ., , ., �* place. we certainly haven't confirmed _ place. we certainly haven't confirmed this _ place. we certainly haven't confirmed this year - place. we certainly haven't confirmed this year at - place. we certainly haven't confirmed this year at the l place. we certainly haven't i confirmed this year at the bbc place. we certainly haven't - confirmed this year at the bbc you said that she may pass by india, either stayed there or there are some reports that she would go to london. i do want to emphasise that we don't have any of that information. but the ties between sheikh hasina and india are well known. we have talked about that through the last few hours. why would she not stay there? do you think there will be concern in terms of india's security in terms of housing her there?— of india's security in terms of housing her there? india has had very close _ housing her there? india has had very close ties _ housing her there? india has had very close ties with _ housing her there? india has had very close ties with sheikh - housing her there? india has had i very close ties with sheikh hasina. she is one of the first leaders who came to new delhi when mahindra moody came to power injune. the army league founder was also seen as the father of the nation in bangladesh, he was also very close to india. the first escape routes,

the first place of shelter for sheikh hasina and her sister and family would be india, but that is speculation. there is no confirmation coming in from the bangladesh army or the opposition as of now where exactly sheikh hasina would be. sources i have spoken to the top brass of the indian security apparatus have confirmed to me that she has arrived in the north—east of india and now she will see how things unfold. perhaps she will then decide where to go. there are specular to a report that there are other countries, including the uk, that she would consider. there has been a stage within the prime minister's residents in dhaka. thousands of protesters have been looting. the violence as of now

continues and the internet has been shut down as well. the army chief and bangladesh has requested that the interim government will take over and there will be some solution by later tonight. over and there will be some solution by later tonight-— by later tonight. india also has a stake in all _ by later tonight. india also has a stake in all of _ by later tonight. india also has a stake in all of this, _ by later tonight. india also has a stake in all of this, doesn't - by later tonight. india also has a stake in all of this, doesn't it? l by later tonight. india also has a j stake in all of this, doesn't it? it is always had concerns about anti—indian militant groups in bangladesh. how do you believe they are going to react to the military said they have set up an interim government? what is the relationship between india and the military in bangladesh?— between india and the military in banladesh? . . �* . . , bangladesh? india and bangladesh have had very _ bangladesh? india and bangladesh have had very important _ bangladesh? india and bangladesh have had very important strategicl have had very important strategic ties. the military and security cooperation also been robust. it is very much rooted in the existence of bangladesh itself.

certainly, they were important ties and this is