this is the business briefing, i'm maryam moshiri. avoiding an economic crisis. turkey's finance minister is about to unveil a new economic model for the country. and the battle of the smartphones. sales are slowing, but samsung tries to convince customers to upgrade their old phones with this brand new note9. and on the markets, asian stock markets are lower as worries over global trade tensions take centre stage friday, amid heightened global trade tensions, while the sell—off of the russian rouble continued to impact currecny markets. is turkey heading for an economic crisis? it is a question that more and more international investors are asking as the currency tumbles, amid a rapidly worsening financial outlook. and, in the next few hours,

the finance minister is set to lay out a plan for what has been termed a new economic model. if one image can lay out the depth of turkey's problems, it is this. over the past year, the lira has sunk more than 40% against the us dollar. the latest nose—dive comes after last week's us sanctions over a jailed pastor. turkey sold the us more than $9 billion of goods last year, but there are concern about turkish companies maintaining their preferntial access to the world's biggest economy. those geopolitical tensions sharpened the focus on president erdogan‘s tightening grip on power, and its impact on the economy. it has since eased expectations by cutting its economic growth target to less than 4%. growing debt levels is a huge problem. a lot of it is held by private companies. as of may, it amounted to more than $240 billion, and given the majority is held in us dollars, the weak lira makes it more expensive to repay. and then there is inflation, that is threatening to run away. price are increasing by 15% a year, and the central bank has to balance the normal control of raising interest rates with president ergodan‘s opposition to them.

arnab das, global market strategist at invesco asset management, joins me now. good to talk to you, thank you for joining us. how did turkey get to this point? well, i think the main issueis this point? well, i think the main issue is that the economy in turkey has been running too hot. it has been growing too fast, as you said. inflation has been very high. the current account deficit and external financing required in taking is too large for the current environment —— in turkey. so i think the idea of this new economic model is the right one. turkey needs to grow more slowly in order to grow sustainably.

the question is whether, as you implied, whether the president of turkey is really on board with this idea. and why would he not be? where would that be a clash between what he believes and what the economy needs? well, i think there has been a long track record where president erdogan has been in power in one way oi’ erdogan has been in power in one way or anotherfor almost two erdogan has been in power in one way or another for almost two decades. it started very well, in what has happened over time, as he has accrued more and more power to himself, is that he has insisted on running the economy very hot, and also insisted on a rather unconventional view of how things work. so he believes that lower interest rates lead to lower inflation, and has cited as proof of this that, eno, the united states, the united kingdom, the eurozone, have low interest rates and low inflation. most of us think the causation goes the other way —— you know. how does he justify that

economically, or does he notjustify it? i think there are a number of factors here. he rails against something that he calls the interest rate lobby, and he says that there is something called a currency conspiracy, which he has attributed to the financial markets or the central intelligence agency or various issues like this. so it is quite hard to see how this political position is reconciled with his economic realities. and it is also quite worrying, isn't it, always, when politics and economics intertwine. how important is it for turkey to get this economic model right? and is absolutely crucial. if thatis right? and is absolutely crucial. if that is not addressed and turkey's economy not adjusted, then i think we are looking at a rising chance of a financial crisis and even more of a financial crisis and even more of a currency crisis that has already taken place. so i think there is a lot on the table here for turkey itself, for the investor community, andindeed itself, for the investor community, and indeed the geopolitics are very

important because of turkey's crucial role in nato. good to get your point of view. thank you very much forjoining us. crucial trade talks between the us and japan are taking place in washington. let's go to our asia business hub, where karishma vaswani is following the story. important talks. what do we know so far about how they have been going? well, not very much, to be honest. what we do know is that two sides are discussing the very important trade tariffs and the threat of those tariffs, that the us has said it might impose on car parts and car imports of 25% or so. and of course, japan being an exporter, it is something that it is very concerned about. for its part, japan is looking to discuss the multilateral trade deal that washington wants to continue to deal by laterally, from what we understand. all of this coming against the backdrop of japan's economic growth figures. we

have seen some positive numbers, japan bouncing back to growth following its first contraction in two years, according to official figures this friday. but nevertheless, the fears of the us trade war have consistently clouded the outlook for japan. just trade war have consistently clouded the outlook forjapan. just give you the outlook forjapan. just give you the figures of how the economy grew by 0.5% quarter on quarter in the april tojune by 0.5% quarter on quarter in the april to june period compared by 0.5% quarter on quarter in the april tojune period compared with a decline in first quarter, but of course, this doesn't take into account the prospect of future tariffs, something that economists are pointing to as the months go by in this year, with regards to whether or not tariffs will have an impact on growth going forward. thank you very much. competition in the global smartphone market has been fierce, particularly as global sales have stalled. the latest effort to try and convince customers to upgrade their old phones — samsung's note9, which was unveiled in brooklyn on thursday, and is set to go on sale in two weeks. the bbc‘s kim gittleson went to take a closer look. the all new galaxy note9!

samsung is placing a big bet on its biggest smartphone yet. the note9, packed with extra features the company is hoping that the so—called halo model will hope revitalise sales of all of its smartphones, after it it lost market share to rivals apple and huawei. samsung is betting that customers will shell out for what it calls a supercomputer in your pocket. the basic note9 will cost $1,000, with the extra—memory model costing $1,250, making this the most expensive smartphone on the market. so what do you get for the hefty pricetag ? so we've beefed up the battery on the device, so that for the first time ever we've got a 4,000 milliamp battery.

it can last you all day. all day, 2a hours? what else do you get? plenty more. we have double the memory on the device. the note9 also has a bluetooth stylus that allows you to take pictures remotely — perfect for the selfie addicts. but will these features be enough, particularly in a stagnant smartphone market with more competition than ever before? well, the smartphone market is increasingly becoming difficult. we're in a saturated state of the market right now. growth is not good to be expected to be very strong, and hardware vendors are finding it increasingly difficult to differentiate. samsung moved up the launch of this smartphone to get ahead of apple's launches later in september. to attract a wider audience, it also partnered with more youth—focused companies like epic games, the maker of the popular fortnite. the question is whether consumers will buy samsung's pitch that bigger really is better. now let's brief you on some

other business stories: ryanair pilots are striking in five european countries, forcing the cancellation of a sixth of the firm's flights during the holiday season peak. the 24—hour walkout involves staff in germany, sweden, ireland, belgium and the netherlands. about 50,000 passengers are understood to have been told of cancellations on 400 flights. britain's largest business organisation, the cbi, is proposing a new post—brexit immigration system designed, it says, to ensure that employers can still attract the workers from the eu that they need. it wants immigration targets to be scrapped and replaced by a system to encourage immigrants to make a positive contribution to the economy. that's it for the business briefing this hour, but before we go, here are the markets. asian stock markets are lower as worries over global trade tensions take centre stage friday, amid heightened global trade tensions, while the sell off

of the russian rouble continued to impact currency markets. up next: news briefing. we will take you through the stories making headlines in the global news media today. the confederation of british industry is calling on the government to scrap immigration targets after brexit. instead, the cbi wants ministers to focus on ensuring those coming to the uk can make a positive contribution to the economy. the government says it

will outline its own plans in due course. our business correspondent jonty bloom reports. immigration matters to british industry. the cbi claims that half of all building workers in london are from the eu. british agriculture needs 60,000 seasonal foreign farmworkers every year, and the nhs has seen a drop of 87% on the number of eu citizens registering as nurses and midwives. that is why the cbi says that immigration has delivered significant economic benefits to the uk. it also knows the free movement of people between the uk and the eu will almost certainly end after brexit. so it is proposing allowing firms to recruit from the eu after brexit but limiting those who are not studying or without independent means or a job on staying more than three months. eu citizens will also

have to register with the authorities, the limited to what in work benefits they can claim, and companies will have to prioritise the recruitment of reduced staff in sectors with high levels of unemployment. the cbi also wants to legally guarantee the rights of eu citizens already in the uk. the government says it will announce his plans for post— brexit immigration in due course, and it will be a system that works for all parts of the uk. coming up at 6:00am on breakfast: charlie stayt and naga munchetty will have all the day's news, business and sport, plus a call for a delay in the installation of smart energy meters. the government wants every home to be fitted with a smart meter by 2020, but the advice charity citizens advice says it needs to extend the deadline by three years. last year, the cab received 3,000 complaints about the devices, with problems ranging from aggressive sales techniques and some customers still having to send readings to their energy company. this is the briefing from bbc news. the latest headlines:

hundreds of ryanair flights have been cancelled today due to widespread strike action being taken by the airline's pilots, affecting several european airports. more than 50,000 passengers are understood to have been sent flight cancellations. after weeks of hot weather in france, torrential downpours have brought floods and forced the evacuation of more than 1,000 people, most of them campers, in the south. a 70—year—old german man who was helping to supervise children at a summer camp is missing. the us vice president has unveiled plans for a new space force that could become the sixth branch of the us military. mike pence says the force will be up and running by 2020. but the plan still needs approval, and $8 billion funding, from congress. now it's time to look at the stories that are making the headlines in the media across the world. we begin with the business page of the guardian here in the uk. it covers our main news story — the rya nair strike, showing criticism of its boss

michael o'leary graffitied on a wall in mallorca. moving on to the new york times, and it details us plans laid out by vice president pence to create a space force as a new branch of the military. let's look at a story on the bbc news website. a video game that was actually dementia research has found men are better navigators than women — but says the reason why is unpleasant — we'll explain it all. we've been asking you about a story from apple insider, and a patent that shows apple might be looking at iphones being used as passports. and the daily mirror in the uk is among many covering new research but should we be taking it with a pinch of salt? researchers say we can actually have more of the seasoning than we'd thought. so let's begin and back with me is lawrence gosling, editor—in—chief of what investment. we spoke about ryanair a little

earlier in the programme but the guardian is talking about how the whole model of low—cost airlines are based around how they work in terms of how workers are treated, where they are based, how pilots are based in various areas and move around freely. this is a jeopardy, isn't it? the guardian is saying that ryanair may face specific legal challenges to do with discrimination off the back of this ongoing industrial problem. they have a 2k hour strike today affecting pilots in the netherlands, germany