this is business briefing. i'm sally bundock. where will the buck stop? a rising us dollar piles the pressure on emerging economies, from india to turkey to argentina. plus, who needs iran when you have asia? boeing tells us it's flying high, despite the ban on its multi—billion dollar airliner deal with tehran. and on the markets... the global railing is continuing gci’oss the global railing is continuing across the board in asia. with the us trade deficit shrinking. we start with the rising us dollar. it has been gaining in strength against currencies around the world on the prospect of more rises in us interest rates. and that has been piling the pressure on emerging economies

from india to turkey to argentina. let's show you the details... this is the dollar index, a measure of the greenback versus a basket of currencies. it's up around 5% since the end of january. and over 2.5%just in the last month. it's bad news for emerging economies. they borrow in us dollars so, when the dollar rises, so do their debts and interest payments. that has helped put emerging market stocks and currencies under pressure. turkey and india are among those hit, as the dollar has surged against both the lira and the rupee this year. the turkish lira has lost over 20%. the reserve bank of india was forced to raise interest rates on wednesday, for the first time in more than 4 years. india imports most of its oil, which is made even more expensive by the falling rupee,

pushing up inflation. last month turkey's central bank raised its main interest rate from 13.5% to 16.5% to try and stave off the fall in its currency. it meets again later and is expected to raise rates again. the weak currency is stoking inflation — it's running at over 12% — and becoming a big issue in elections due later this month. translation: i hope this election will improve my income because before i was spending a turkish lira a month. and now cannot do it for less tha n a month. and now cannot do it for less than 400 lira. the reserve bank of india isjust one of the central banks in asia grappling with a falling currency against the dollar.

rico hizon and our asia business team in singapore are following the story. good to see you. it is a real problem and india isjust one of many emerging economies trying to get their heads around it? that's right. we are seeing rising prices in asia and also growth rates between 6% to 7% and this is putting a lot of pressure on asian banks to raise the cost of borrowing. in january, a bank raised its main overnight positive rate by up quarter of a point and that was followed by indonesia. four point 7596 followed by indonesia. four point 75% on the 30th of may. it was the second increase in as many weeks as authorities try to move the support

the faltering currency and capital outflows. there are warnings there may be more to cars. the philippines on may the 10th try to contain inflationary pressure due to strong economic growth. the borrowing rate 110w economic growth. the borrowing rate now stands at three point 25%. pakistan was the most aggressive, 6.5% hike in rates amid growing concerns of a growing deficit. we may see more hikes from asian banks for the remainder of the year and to pressure from the us central bank. jeremy thomson—cook is chief economist at the foreign exchange company, world first. i would imagine, for the financial markets, this has been somewhere to put your money in, the dollar, in the run—up to interest rates going up the run—up to interest rates going up but also the strong flow of years

about the state of its economy. absolutely. the us dollar is of the most important currency and if the dollar is strengthening, everybody has to take notice. there are three strings — the monetary policy, the federal reserve, the movement in fiscal policy, by the trump administration and how they will be paid for, obviously more borrowing from the us and the investment perspective. where is money starting to move if we are looking at a world economy. we have talked a lot already about the impact for in merging economies but what about for the us? it is thought that the treasury would never say this but they like a weaker dollar the many reasons. what does it mean if it gets stronger? simply put, us

imports... products coming into the us economy are cheaper and dampens down latent us inflation and for the export, in light of the g7 meeting in her back and talking about world trade and our antagonistic it has become, the us dollar and its movement of putting more and more pressure on businesses and companies that want to export or be seen to export to the us to bring down of this trade deficit which trump has targeted for so long. yet we saw in the last month, a record high coming out the us to the rest of the economy which interesting given all the talk about tariffs and trade wars. there will be a commodity aspect. if markets are thinking oil prices are only going to go high they may have pre— booked that.

0bviously trade is a long—term perspective. there will be longer term aspects, average price over the past months. trade will be the most interesting thing to look forward to. good to see you and thank you for your. we will keep you across it at all times. let's go to sydney now where the airline industry is holding its annual gathering. our own aaron heslehurst has been reporting from the meeting of the international air transport association — or iata — all this week. he spoke to one of boeing's senior executives and started by asking about the damage done by the change of us policy on iran, which was due to buy 80 boeing airliners worth billions of dollars. when it came to iran we were all was ina when it came to iran we were all was in a position to let the government ta ke in a position to let the government take the lead. when it came to booking those orders and taking a

look at what was happening in the market we were cautious. as those orders are now sidelined, it will not impact how many plants and produce in the future. picking up the slack will be asia was make an incredible market. 4096 over the next 20 years in terms of demand. economic growth, the biggest market in terms of growing and in the middle class. we saw a flight from london to perth, the first time connecting great britain to australia using a boeing 787 but those of us in a straight want to go to sydney not perth. if you talk to qantas they are working on it. pratchett sunrise. we are working closely. the new triple seven will be in the marketplace in 2020. more range than any airplay and flying

today but it is frankly not quite enough to get you from sydney to london. we are working to see how to make air planes in the next decade flying 21 hours. we will see it? alt—right longer range flying is becoming part of the strategy in latin america, asia and the middle east and it will be an important pa rt east and it will be an important part of the strategy. 17 hours in one airplay in and would rather do that and not make that stops i can be in my hotel room a little bit earlier. what are they going to do for the city ‘s who rely on a harbour city, singapore, dubai? frankly, .2 point and more destinations have been the trend in the market. —— point two point. destinations have been the trend in the market. —— point two pointm is about more frequency and more

convenient for passengers. the vice president of boeing. now let's brief you some other business stories: europe's big five football leagues generated a record e14.7 billionn in revenue in the 2016—17 season, up 9% on the previous year, according to new figures from deloitte. the english premier league was the clear market leader, with 86% more revenue than its nearest competitor, spain's la liga. deloitte said the financial results reflected a new era of improved profitability and financial stability for european football clubs. volkswagen has warned its main factory in wolfsburg, germany, faces temporary shutdowns later this year because of new emissions test standards. it plans "closure days" to prevent a build—up of vehicles that have yet to be approved for sale. from september, more rigorous eu standards will be brought in to replicate real driving conditions more closely. that is your business briefing. see you ina that is your business briefing. see you in a moment. the government is being urged

to reform the welfare system, so that fewer people are living in destitution. a report out today from thejoseph rowntree foundation, which funds research into social policy, says 1.5 million people in the uk were destitute in 2017. ministers insist that work is the best route out of poverty. 0ur social affairs correspondent michael buchanan reports. the emanuel centre helps those who have little. 0ne the emanuel centre helps those who have little. one of the regular visitors is dave. he has been homeless for years after a relationship breakdown. he has had to go without money when his benefits were stopped, accused of not trying hard enough to find a job. i find

not trying hard enough to find a job. | find it not trying hard enough to find a job. i find it hard to look for work because when i split up with my is asi because when i split up with my is as i had nothing. when you get your first claim, you know, you try and make that last and then you have to go through the procedure again to look for work and then you get other sanctions. today's report says people are destitute and in debt over the course of a month have gone without shelter and food. in 2017, one .5 billion people in the uk were said to be living in destitution, the main causes included in that sanctions and poor health. what we see every day as people struggle to make ends meet, making terrible choices are better whether to pay the rent, buy food, clothing themselves. the highest thing they mention is a lack of food. the number of people in destitution is estimated to have fallen since 2015

due to benefit sides used less often. researchers want that trend to continue and for the freeze in benefit sanctions to end. investors say they are spending 90 billion pounds —— million monthly. —— £19 million. this is the briefing from bbc news. the latest headlines: burying the dead of guatemala's volcanic eruption — as the death toll rises so does the anger against government officials. spain's prime minister unveils his new cabinet — more than 60% of government ministers are women. not so football friendly — how a team of bbcjournalists found themselves under surveillance while visiting a world cup host city in russia. now it is time to take a look at the stories that are making the headlines in media across the world: we begin with the daily telegraph, who report that david davis and prime minister teresa may have clashed again over brexit.

and in the spanish newspaper, el pais, a report on pedro sanchez, the new spanish prime minister who has picked several women and a non—separatist catalan for his cabinet. and on the front of the ft, the news that european markets took a fresh hit after top policymakers delivered confident remarks on the eurozone economy. what will the european central bank do next? the japan times says that airbnb has axed 80% of its listings ahead of new tighter regulations that come into force next week. and finally the scottish daily mail has on the front page that scotland is to be the first part of the uk to introduce a deposit return scheme on cans and bottles. so let's begin.

jonathan charles is managing director for communications at the european bank for reconstruction and development hello. i am here and ready to go. he is back and braced for wrecks at. the latest twist in turn is quite significant. it is the gift that keeps on giving, brexit. we are approaching a significant crunch point to give you look at theresa may over the last few years she has tried hard to kick the can down the road to try not to admit to the moment when she has to take a very strong position that upsets one wing of her party or another. be