this is business briefing. i'm sally bundock. turkish president erdogan has secured another term in office, but what lies ahead for the turkish economy? and china prepares for the worst and frees up billions of dollars in its banking system to cushion the blow of a slowing economy due to trade tariffs. in the financial markets, in asia, the fear factor is back as investors weigh up reports that more punitive trade action against china from president trump. —— reports of. as you've been hearing, the electoral authorities in turkey say recep tayyip erdogan has won a second term as president. it's not that long since turkey was regarded as one of the world's hottest emerging markets, but reviving the economy is now one of the biggest challenges

for mr erdogan as he gets set to begin a second term as president. investors are concerned about how much control the government has over the economy, and that has led to the turkish lira losing more than half its value against the us dollar since mr erdogan first became president in august 2014. however, last year, the economy saw economic growth of 7.4% — a pace that continued at the beginning of this year with growth in construction and services fuelled by a strong increase in household consumption. but a lot of this has been paid for by borrowing and there are real concerns about whether businesses, in particular, can afford to repay their debts. in total, the economy has an estimated $200 billion of dollar debt, which is getting more expensive to repay. and less money has been coming into the country, with foreign investment falling. it's fallen almost 40% from its peak two years ago,

tojust under $11 billion last year. the investment director at fidelity personal investing is with me today. let's talk about turkey then, just give us your take on the economic outlook. president erdogan has said in his election campaign, the economy essential to something he really wa nts economy essential to something he really wants to tackle that there are some serious concerns about the short—term outlook. are some serious concerns about the short-term outlook. absolutely, so turkey has gone from being an investor ‘s's darling, the giant of emerging markets, to junk investor ‘s's darling, the giant of emerging markets, tojunk status. at two things that are really concerning. one, double—digit inflation, two, the decrease in the currency. of course, as the us

dollar strengthens, that means debts become more and more expensive to repay and that is a real concern and there are question marks over whether his focus is in the right area. we mentioned an introduction that one of the reasons why the lira has sunk in value to a great degree is of course concern about the power he has got. as he is re—elected as president, so do new powers come into effect which he sought broken sometime ago, but actually they come into effect with this new term of presidency, which give him a lot of new controls and it is very hard to challenge what he wants to do. yes, there is no doubt that turkey is a divided country. we had a very closely contested referendum that gives him almost a superpower as a president and moves away from the parliamentary system to a presidential system, and there are concerns that turkey is falling into

authoritarian rule. if you look at how markets are responding, markets have been quite positive on the day's result. the reason for that is because the country really needs some stability. that is just a short—term response, whether long—term response will be as positive is the question because investors are questioning. they are questioning because we are seeing a drop in direct investment into turkey, but also as well because people are looking to the us dollar as the federal reserve starts to increase interest rates. in the meantime, that in itself is a punitive on local businesses, as interest rates climb. yes, and that isa interest rates climb. yes, and that is a concern interest rates climb. yes, and that is a concern across interest rates climb. yes, and that is a concern across emerging markets. when we had this year of record low interest rates, a lot of people fled to those markets because you could get better return, now as markets like the us and europe start

returning to a more normal environment without pushing up interest rates, money flows away from emerging markets towards more established markets, and that piles the pressure on turkey ‘s. established markets, and that piles the pressure on turkey 's. thank you. she'll be back for the news briefing late as well. but let's not talk about china. —— let's now. china's central bank has announced that it's cutting the amount of cash some banks need to hold as reserves by 50 basis points. this will free up over $100 billion for commercial banks to lend money to boost spending. let's go to our asia business hub, where mariko oi is following the story, lovely to see you, so this is china taking action in case, isn't it? in case the trade war gets really acute. that is what many analysts are speculating. of course, there is an official line from beijing that this is just an official line from beijing that this isjust a policy an official line from beijing that this is just a policy moves to make sure that there is enough money for those small companies to buy money, but given the timing and given all these fears about the trade spat

between the us and china, many are wondering if this is basically beijing preparing for the biscuit that trade is about having a real impact on small companies, especially in how china's economy is going to grow. as you mentioned. the official announcement sounds very jibe any, but this is about freeing up jibe any, but this is about freeing up about 118 billion us dollars so that companies can buy more easily and boost spending. it will take effect on the fifth ofjuly, this is the third cut by the central bank. all right, thanks a lot. good to see you. now let's brief you some other business stories. parliament will vote today on the government's plans to build a third runway at heathrow airport. the vote likely to expose high—profile divisions in both tory and labour ranks. heathrow is already europe's busiest airport and needs a third runway in order to increase capacity, but there's strong resistance on environmental and other grounds. the taxi hailing company uber goes to court in london today,

hoping to win an appeal to keep its licence to operate in the city. last year, the transport regulator tfl refused to renew uber‘s licence because of concerns about public safety and security. the compa ny‘s approach to reporting criminal offences and how its drivers were getting medical certificates were cited for refusing permission to operate in london. that is our twitter question today, we are talking about uber. do get in touch. china has been trying to attract tech giants which are listed overseas to also float their shares back home, but the country's smartphone maker xiaomi announced on saturday that it's delaying the share sale in the mainland indefinitely. the firm is still listing in hong kong on 7july. jonathon conant first tried flying trapeze at the age of a0 and has since dedicated his life to it. after co—founding the largest school of flying trapeze in the world,

where he worked with sarah jessica parker, hugh jackman and pink, he took another leap into the unknown, selling his company and moving it to the jungle of costa rica. now he spends his days swinging and somersaulting above the trees, and teaching others how to take the plunge. hannah gelbart has been to meet him. when you are in the air, you are not only feeling the elevation, you are not only feeling the lift, you also feeling the gravity of it or. -- of it all. you could die, you could achieve the impossible. all that is true at the same moment. jonathon co na nt true at the same moment. jonathon conant had never touched a trapeze into the age of a0. a few years later, he was running the world's

largest flying trapeze school. he is now nearly 60 and he still swings from the trapeze nearly every day. in his career, he has trained amateurs, professionals and celebrities, including sarah jessica parkerfor an episode celebrities, including sarah jessica parker for an episode of sex and the city. but the years ago, gave it all up city. but the years ago, gave it all up and move to the in costa rica. this is where he teaches now. —— three years ago. what are the things that nobody really tells you if you go out for the american dream is that if you get it, it could overwhelm you. it could wear you out, it could make you sick, you could lose your way. letting go of the american dream is quite hard thing do because you get quite used to having a solid income, you get used to people recognising you. before studying the trapeze, jonathan studied psychology and workers as a therapist. now he's using aerial arts to help people ove rco m e using aerial arts to help people overcome theirfears. using aerial arts to help people overcome their fears. about my life i have worked with schizophrenics and people with head injuries, and with children. always trying to

truly understand what affects the human psyche, what breaks the human psyche down and builds it back up again. and the first time i saw the flying trapeze i realised that eve ryo ne flying trapeze i realised that everyone who is going up on the big was terrified, but when they actually accomplish taking a swing they looked back up where they had jumped and realise that was an amazing thing i just jumped and realise that was an amazing thing ijust didn't i survived, and if i can do that, what else i do? —— rig. this that is a businessman who is flying high. that's it for business briefing. i will see you soon. prince william has arrived in the middle east for his most diplomatically sensitive

royal tour to date. the five—day visit will include the first ever official royal visit to israel and the palestinian territories. earlier, the duke of cambridge spent time in neighbouring jordan, from where our royal correspondent nicholas witchell sent this report. a gentle start to a royal tour of more than usual sensitivity. oman, the capital ofjordan, is the first opera prince william in a week when he will break new ground for the royal family. —— amman. he will break new ground for the royalfamily. —— amman. up till now, no british royal has paid a visit to israel and the palestinian territories. it is happening at least in part because he wants to send a signal that piece can only ta ke send a signal that piece can only take part with the involvement —— two lands on the continent. later

today, we will step into that cauldron when he arrives in tel aviv. —— william. the programme for the visit has been carefully corey crawford by british diplomats, the speeches carefully written. in jordan, there was just a glancing reference to the region's critical instability. a greatly admired and resilience you in jordan instability. a greatly admired and resilience you injordan have shown in the face of the many security and humanitarian challenges that have confronted you as a result of conflicts in this region. it will be this afternoon when william arrives in tel aviv for three days carefully divided between israel and the palestinian territories that the test will begin. for him, and for the evenhanded british policy which he will represent. there will be more on that sotry on breakfast. charlie stayt and louise minchin will have

all the day's news, business and sport. this is the briefing from bbc news. the headlines: after winning his second term in office, president erdogan of turkey is to assume sweeping new powers. his ak party is also on course for an overall majority in parliament. an informal eu summit on migration pledges not to force refugees to return to countries where they face persecution. england records its biggest win at a world cup to overwhelm panama 6—1 and secure a place in the last 16. so let's take a look at the stories that are making the headlines in media across the world. certainly in this country, england is featuring. we start with a turkish tabloid. their headline, "13 victories in 16 years". it is regarding president at one

under sweeping new he will assume in that role. —— president erdogan. the financial times now, and it looks at china's defences from the potential us trade war. it says the amounts banks have to keep in reserve will be lifted, and it's freeing up a $100 billion buffer for the economy. another business paper. here in london, it's looking at the economic impact of that historic move in saudi arabia. women there are now allowed to drive. how it could boost the saudi economy by $90 billion. the guardian among many looking at desirable destinations forforeign workers. london's still on top, but the uk as a whole's slipped down the annual listings. well, england at least feels like a pretty happy place to be today. many of the front pages

looking like this. this is the daily mirror celebrating england's record win last night, that saw the side go into the world cup final 16. so let's begin. with me is maike currie. it is interesting to see how the turkish media is interpreting all of this. there is a lot of conversation about how free the media is in turkey anyway. this is a president erdogan supporting tabloid