this is business live from bbc news, with ben thompson and maryam moshiri. turkey's currency plunges to new lows, as the european central bank raises fresh concerns over it's economy. live from london, that's our top story on friday, 10th august. turkey's government prepares to outline a new economic plan, amid soaring debt and runaway inflation. we'll get an expert view on what's at stake. also in the programme... a noteable launch for samsung — the world's number smartphone seller launches its new handset, but is bigger really better? and there's a lot of economic data due today, including the latest growth figures for the uk — we'll have the details. uk retailer house of fraser is in administration. 17,500 jobs are at

risk. we discuss that later. and with the pound under pressure as the brexit deadlock grinds on, our economics guru andrew walker will be here to talk us through that and all the other big stories of the week. apple has filed a patent that would turn your iphone into your passport — but how do you feel about it? would you like you passport on your phone or it too much of a security risk? let us know — just use the hashtag bbcbizlive. hello and welcome to business live. let us know what you think about that story and any others we are covering. we are going to start with the turkish economy. it is in crisis mode. its currency — the lira — has fallen sharply against the us dollar since the new year, amid a rapidly worsening financial outlook. and there are now reports the european central bank is worried about the impact it will have on banks across the eurozone. so they'll be paying close attention to the finance minister when he lays

out a new economic model in the next few hours. and this tells you just what's at stake. over the past year the lira has sunk more than 40% against the us dollar. the latest nosedive comes after last week's us sanctions. turkey sold the us more than $9 billion of goods last year, but there are concern about turkish companies maintaining their preferential access to the world's biggest economy. that's because washington says it's under review, after the two countries imposed tariffs on each other. those geopolitical tensions sharpened the focus on president erdogan‘s tightening grip on power and its impact on the economy. it's since eased expectations by cutting its economic growth target to less than 4%. growing debt is a huge problem. a lot of that debt is held by private companies, amounting to more than $2110 billion. and given the majority is held in us dollars, the weak lira makes it

more expensive to repay. and then there's the threat of runaway inflation. prices are rising 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. yacov arnopolin is an emerging markets portfolio manager at the investment firm, pimco. we heard a whole raft of the issues facing the turkish economy. what next? what does this new economic model mean? we are waiting for an announcement of the measures and the new plan. realistically it is difficult to envision anything that would make a difference to investors 01’ would make a difference to investors or markets. hiking rates seems unlikely. maybe making concessions to the us in this tiff it is having

over us passports being detained in turkey. i was reading about turkey and interest rates and you would think, logically, you have got a currency that is plunging. you raise interest rates. and yet there is a belief among many turkish people that the turkish lira's evaluation isa that the turkish lira's evaluation is a western conspiracy? dunne there is a western conspiracy? dunne there is that. president erdogan got elected in june is that. president erdogan got elected injune of is that. president erdogan got elected in june of this is that. president erdogan got elected injune of this year. is that. president erdogan got elected in june of this year. turkey is also sensitive to the political cycle. there are regional elections next march. the first run of addiction is recognising that you have a problem. i think maybe until overnight, until this morning, there are overnight, until this morning, there a re really has overnight, until this morning, there are really has been a reluctance to recognise that the turkish economy is facing issues or that some of

this is self—inflicted. is facing issues or that some of this is self-inflicted. it is not just turkey facing issues. already worries about this economic issue spreading to europe, particularly european banks. some european banks are down 3% today. and the eurozone bank index is down 2.2%. there is a fear that this will spread to europe. we are exposed to turkey. turkey is a huge economy. it has been buoyant for the last decade. europe is very intertwined with turkey because of trade. and frankly because of refugees. 3.5 million syrian refugees, the biggest summer in the world, and turkey acts as a buffer state for europe, were clearly the political cycle has gotten negative press about letting

in further refugees. turkey is helping the eu. thank you very much. let's take a look at some of the other stories making the news. there's more problems on the british high street. the troubled department store, house of fraser, has appointed administrators after giving up the fight to save the business. it's struggled to adapt to the changing retail environment, thanks to the growth of online shopping and high rents for its stores. the company says it will continue trading for now with its stores open today as usual. its fate was sealed earlier this month, when chinese firm c.banner pulled out of a rescue deal that would have brought much—needed investment. ryanair pilots are striking in five european countries, forcing the cancellation of about 400 flights during the summer holiday peak. that's about one in six flights that were scheduled for today. the 24—hour walkout involves staff in germany, sweden, ireland, belgium and the netherlands. the action is the largest in a series of strikes over pay and conditions. ryanair says it has made every

effort to resolve the dispute. shared office space provider wework has raised another $1 billion from japanese conglomerate, softbank. it is the second investment from softbank, which sank $4.4 billon into wework last year. wework is understood to be worth around $20 billion. but the privately—owned company is still losing money, despite revenue rising. japan's economy grew by more than expected in the three months from april tojune expected in the three months from april to june thanks to expected in the three months from april tojune thanks to a jump in household spending. growth came in at 0.5%. japan trying to resolve it straight different with the united states. katie soper is in singapore. this is a familiar tale. we are talking about china and japan at the whim of un trade sanctions and what it means for their economic health? that is right. these readings do they look quite good. we saw the

economy bounce back after their first contraction in two years. half a percent up. this is 1.9% annual rate. that beat expectations. but yes, this comes as both sides, this big meeting occurring in washington between the trade ministers. they both want a deal but how are they going to get there? from the japanese perspective they want to see a reduction in the promised trade tariffs on cars. because japan is such a strong exporter of cars and car parks, that is what they wa nt to and car parks, that is what they want to see. the us wants to see japan increase its defence spending. the numbers today are backward looking. they came before the ta riffs looking. they came before the tariffs were put into effect on china. we are going to see what comes into the next rating, that thatis comes into the next rating, that that is going to be a stronger indication as to what effect it is having. to katie, thank you. let me

show you the numbers. us markets ending yesterday in the red, despite amazon shares hitting an all—time high. that's down to the ongoing trade dispute between china and the us — one that's likely to keep dominating headlines. relations between the us and russia took a hit yesterday, after washington dc revealed plans to impose fresh sanctions on russia for its alleged role in the poisoning of a former russian spy in the uk. let me show you what is happening in europe. we get the latest gdp figures for the uk. we will have a look at those at 9:30am. house of fraser, the big departments store chain in the uk, calling in the administrators. putting 17,500 jobs at risk. we will talk about those stories in a moment. first, let's head to the us and paul blake. before the bell we are looking for a

new consumer price index. it sounds boring but the cpi is one of the key measures of inflation in the us economy. while the fed doesn't see it as its preferred method for judging when and when not to raise interest rates, it gives us a chance to look at how inflation is affecting the prices of everyday goods american consumers are purchasing. it is crucial in calculating the real wages that american workers are bringing home with each paycheque. what is the expectation? wall street is looking for a 3% annualised rating up from 2.996 in for a 3% annualised rating up from 2.9% injune. joining us is richard dunbar, investment director at aberdeen standard investments. let's talk about house of fraser. sad news that the department store is going into administration. it has had no choice, as it? disappointing but probably not a surprise. too much debt, not enough sales. a

business model that looks more suitable to a time now passed and a model under reconstruction anyway. they were going to close havant the stores. —— half of the stores. some stores. —— half of the stores. some stores will be viable. but not perhaps as many as they would have hoped. the chairman and the chief executive this morning quite upbeat despite calling in the administrators, optimistic they will find a buyer. they have to be optimistic, of course. they want to find a buyer. who would want it? isis the 60 stores the original plan was to keep 30 going. i suspect there is an interest in a number less tha n there is an interest in a number less than 30. i think there were three orfor serious less than 30. i think there were three or for serious bidders for the business as was. going into administration now that gives more flexibility to potential buyers. the economic figures out in the uk later. what are you expecting? the

expectation is it is growth of 0.4%. twice the growth we saw the first quarter. hard to believe we were sitting with the beast from the east, the snow and the cold, and nothing happened. the economy grinds toa nothing happened. the economy grinds to a halt. the second quarter better, royal wedding, to a halt. the second quarter better, royalwedding, good weather, the world cup, a lot more happening. less happening in manufacturing. perhaps if you pick up with the wea ker perhaps if you pick up with the weaker sterling. will talk to you later about the papers. still to come, the pound is under pressure as the brexit deadline grinds on. you're with business live from bbc news. department store chain house of fraser is to appoint administrators, after giving up the fight to save the business. in a statement, it said that talks with investors and creditors had "not concluded in a solvent solution".

joining us now from the salford newsroom is sean farrington. good morning. sadly inevitable. essentially the problems are the same from any high street chains right now? absolutely. it wasn't a foregone conclusion that house of fraser would go into administration. they have been talking a lot in recent weeks to investors about trying to get somebody to come in and buy the business. they say today even as part of this administration process , even as part of this administration process, they say they hope investors will make —— administrators will make a sale at the end. for the 17,500 staff across the end. for the 17,500 staff across the country in 59 stores that will not be that reassuring. we have already heard there will be 31 store closures. that would affect 6000 jobs. it now could be many more.

they have said previously they wa nted they have said previously they wanted to close a number of stores, lay off 6000 staff. now they are in administration and the boss is confident of getting a deal. it is ha rd to confident of getting a deal. it is hard to know who to believe? you're, not surprisingly there is confusion around it. you may think what is the difference between doing the deal now and after? the terms will be different. you are going into administration. that means a different business will come out of that. we spoke in recent weeks about the chinese investor wanting to have a parking house of fraser. that fell through. sports direct only 11% of house of fraser as it was. lots of talk he may be the person to step forward and help them out. whoever it is hoodoos —— those do the deal, it is hoodoos —— those do the deal, it will not be the same house of fraser that existed beforehand. it may set up select properties across the country. it may be certain things they sell, the contracts. everything is up for grabs. big

questions about who will take it over and what they would do with the business. thank you for clarifying all about. really interesting times. a worrying time for a start. more on that story on the website. you are with business live from bbc news. the turkish lira has fallen to fresh lows against the us dollar as the government gets set to their its new economic plan. a quick look at the markets. this is how european markets are looking. not particularly good. worries over trade wars, the russian rouble and the turkish lira. let's talk about some of those issues. it has been a

busy week as far as economic news is concerned. widow says andrew walker. how long is your list?! sterling is the obvious place to start. we have seen a marked appreciation in the value of the currency. it is basically down to concerns in the markets that maybe there is an increased chance britain will end up leaving the european union without agreement. the so—called crashing out, as people see it. most people reckon that would be adverts for the uk economy in terms of exports, in terms of business confidence and the impact on investment. it is worth saying that over the longer term there has been a particularly pronounced decline in the value of sterling against the dollar, which has partly been a ration of dollar strength. if you look at wider indices at what has been happening to sterling, the

mood is not quite as apparent. the decline has been driven by the concern about the terms on which we will exit the eu. particularly striking that it should come in a period of a few days after the bank of england raised interest rates, which under normal circumstances you may expect to have the reverse effect on the value of the currency. mark carney said there was uncomfortably high probability of an ordeal brexit. that seems to have pushed sterling weaker. let's talk about sanctions. the first tranche of sanctions against the iranian regime this week. also russia as well. what has happened? with russia it isa well. what has happened? with russia it is a question of some sanctions being imposed in response to the attacks on the chemical weapons —— the chemical weapons attacks on two people in britain. it is coming in

two stages. the first stage is focusing on exports of technologies from the united states to russia that could be used for military purposes. export licences are no longer going to be available for that kind of thing. the americans are saying that if there is not convincing proof that russia is refraining from this kind of thing and is going to allow inspections inside russia, they are proposing further, more aggressive action. the russian prime minister has talked about this as being potentially a declaration of economic war, depending on what is in the second round of sanctions. strong words. they are, rather. we talked about sanctions and trade wars. 0n the us— china stuff? yes, earlier this week we had confirmation. an additional $16 billion worth of chinese imports into the united states were going to

be subject to additional tariffs. there had been a consultation on the list of particular goods. we had confirmation of that list. railway locomotives, petrochemical products etc. the chinese immediately responded by saying they will take countervailing action. in the background all the time there is a us consideration going on as to whether to go for another $200 billion worth of chinese products. the tension is clearly ramping up. how immediately do they have an effect? when they were first announced we thought they may be an exemption here, a deal there. that doesn't seem to have happened. we are talking about real effects? very much. these latest sanctions come into force in a couple of weeks. there is the potential for into force in a couple of weeks. there is the potentialfor them into force in a couple of weeks. there is the potential for them to have an increasing —— increasingly significant effect on particular sectors. if we do end up talking

about sanctions on all chinese imports into the us, as president trump as suggested, you are looking at some potential discernible lack of economic input. andrew, thank you. at the moment samsung sells the world more smartphones than anyone else. but the korean firm wants to keep it that way despite fierce competition. so, it's bringing out a new model, the note9, which, amongst other things, will tell users if there's a problem with their photos. kim gittleson was at the launch in new york. the all new galaxy note9! sansone is placing a big bet on its biggest smartphone yet, the note9. the company is hoping this so—called halo model will help revitalise sales of all its smartphones after it lost market share to rivals. samsung is betting that customers will shell out for what is called a supercomputer in your pocket. the

basic note9 will cost $1000, with the extra memory model costing $1250. this makes it the most expensive smartphone on the market. what do you get for hefty price tag? for the first time ever we have got a better battery on a smartphone. it will last you all day. what else do you got? we have got plenty more. this year we have doubled the memory on the device. it also has a bluetooth on the device. it also has a blu etooth stylus on the device. it also has a bluetooth stylus that allows you to check pictures remotely, perfect for the selfie addicts. will these features be enough in a stagnant smartphone market with more competition than ever before? the smartphone market is increasingly becoming difficulty. we are in a saturated state of the market right now. the growth is not expected to be very strong. hardware vendors are

finding it increasingly difficult to differentiate. samsung moved up the launch of the smartphone to get ahead the apple launch in september. it also partnered with more youth focused companies. the question is whether consumers will buy samsung's pitch that bigger really is better. an update on a story we brought you a earlier, the news from house of fraser. the administrator, we are getting details. all stores will remain open and staff should turn up for work. nonetheless they are now trying to find a new buyer after the chinese firm pulled out a week and a half ago, leaving it in this perilous conditions. —— condition. absolutely. more details throughout the day on bbc news and on their website. what other business stories has the media been

taking an interest in? richard dunbar from aberdeen standard investments is joining us again to discuss. this story in the times newspaper talking about a warning from the world trade organisation about who will suffer most in a slowdown. according to them it is going to be the poor. this is talking about trade wars, isn't it? probably not surprised the wto is warning and trade. everything we have been hearing on the news in recent months has been sand going into the world's trade engine, if you like, making world trade slowdown. world trade makes everyone wealthier. the poorest the more so. they will be the biggest losers from the problems we are seeing. does the wto have any power to do anything about it? apart from saying, look, this is terrible for world trade? they do have power but their powers take a long time to

come through. a lot of what is going on at the moment will be referred to the world trade organisation for those countries that disagree. the damage could already have been done. let's talk about our twitter question. we were talking earlier about apple and the fact that it has now asked for a pate and regarding what could end up being technology... we have asked people to tweet. we have had lots. many people very negative. a lot of people very negative. a lot of people talking about the fact your phone or iphone has batteries. what happens if you go to passport control and your iphone dies. you never find anywhere to charge a phone. do you use your iphone at airport? you will be looking at how many dots people have on their phones! where do you stand on technology friday?” suspect this will happen. we were

concerned and nervous about all the things we're happy to use for now andi things we're happy to use for now and i suspect this will come. hell no, says one viewer. there are a lot of security concerns. can we talk quickly about beards? the razor industry, apparently, is upset because beards are back. that has impacted the sales of razors. we should have brought andrew back for this one! it is an interesting article. the number of shaves per month has gone from 43. that is 25% of the number of razors sold. no five o'clock shadow for may. thank you for watching the programme. bye— bye. hello. a much coolerfeel to

hello. a much cooler feel to end the week. while we will see some sunshine today, there will also be plenty of showers. they are piling their way in from the west. they will continue to work east through the day, across scotland, northern ireland, england and wales, merging together at times give longer spells of rain. increasing sunshine for the west this afternoon. a small breeze. particularly gusty on the channel coast. a combination of the showers and the strength of the wind, temperatures will not get much higher than 18 or 19. 20, temperatures will not get much higherthan 18 or19. 20, 21 in the best of the sunshine. this evening goes schar is clear from a string counties. 0vernight most places dry with clear skies. a chilly night. any in single figures. 0nlyjust scraping double figures central and southern england. later in the night with temperatures rising across south—west england is more cloud

increases. that is ahead of this front which will continue to work its way across the uk. notjust tomorrow but into the weekend as well. for many, we will start sunday morning dry with plenty of sunshine. —— saturday morning. the cloud gradually extends north and east. 0utbreaks gradually extends north and east. outbreaks of rain into south—west england, wales and northern ireland. further east staying mainly dry. hazy sunshine. feeling warmer. the outbreaks of rain already across western in south—western areas will continue to work its way north and east through northern england, southern part of scotland through the evening on saturday, and by sunday many of us will be seeing some outbreaks of rain before it sta rts some outbreaks of rain before it starts to clear from the west. it will turn increasingly humid. bye— bye. hello, it's nine o'clock, i'm matthew price. welcome to the programme. more than 1600 people — most of them campers — have had to evacuate because of severe flooding in france.

more than 100 children have been rescued from a summer camp and one of the people looking after them is missing. translation: the first thing i did was put in place a plan to quickly identify where people were clinging to trees. there were adults and children in particular, and with teams working in pairs we first secured the people to the trees, and little by little we evacuated them. do get in touch if you've been affected. also today — a new app is offering rewards,