hello. this is the business briefing. i'm sally bundock. investors head towards safe—havens and away from emerging markets, as fears grow turkey's crisis could spill over into the global economy. and president trump signs a new law which strengthens america's power to review and veto business deals involving foreign firms. and on the market, some asian markets have managed to see beyond turkey's financial turmoil. investors were also relieved wall street didn't fall by any more than it did. the most worrying aspect of the turkey issue is contagion and markets, for now, have shaken off worries about that, the financial turmoil continues for turkey. investors are heading for safe—havens and markets in the us and some in asia have been losing ground amid fears turkey's crisis could spill over into the world economy.

the turkish lira has been in free fall. it lost even more ground on monday against the us dollar — and in the past year has fallen by more than a0%. turkey's central bank has acted to get more money into the banking system, but has resisted calls to increase the main interest rate which is currently i7.75%. an increase could help attract investors who have taken fright over growing debt and deteriorating relations with the us. as of may, turkey's private companies owe more than $240 billion, and it's this debt that has helped private consumption grow the economy at a pace that many now believe is unsustainable. that means that foreign banks could face big losses if those companies can't repay their debts. spain's bbva is most exposed, with turkey accounting for 13% of its loans. italy's unicredit, the netherlands‘ ing, and france's bnp paribas are also on the hook.

dr ali burak guven is from birkbeck university of london. first of all, tell me what you think is the main cause of what's going on in turkey right now. what is behind the financial turmoil that i think you summarise it fairly well. turkey has had a fairly unsustainable growth model for many years now based on high current—account deficits, consumption —based growth which made a very foreign capital to panic, and on top of that we have had some political strain in recent months. having said that, for a long time this was not an existential issue for turkey, the growth model itself, because turkey stuck to fiscal discipline, it had a very

predictable policies that, in the international markets were flush with liquidity. all those preconditions have now fully shifted and that exposes turkey to all sorts of problems. that shift, how do you think we can re—calibrate things? what you of the potential medium—term measures for stabilisation and recovery of the turkish economy? i i think i policymakers have been slow in responding to the crisis. at the moment, i think, responding to the crisis. at the moment, ithink, their responding to the crisis. at the moment, i think, their best bet would be to come up with a clear and coherent policy plan with well co—ordinated fiscal and monetary measures, where the treasury and central bank co—ordinate far better, and the content or the programme is not that significant for me. we need a fairly ambitious programme that is built not on political expediency, but bureaucratic expertise and turkey has that institutional capacity. but i think market

observers such as myself are expecting an waiting for that strong policy response and a policy framework that is foreseeable, credible, and more robust than what we have seen of the past couple of weeks. the economic argument may be clear, but there is a political element to this as well. yes. you need that political will for that. i don't see a major per click —— little fallout for president adan and the government in this context. there is this lack of appetite to ta ke there is this lack of appetite to take some policy risks, even though this is at the very beginning of his presidency, i think they can be a bit bolder than they are at the moment. 0k, dr ali burak guven. if you so much for being with us. thank you so much for being with us. thank you for having me. -- thank you so much. the us has passed a new law that strengthens the government's power to review — and potentially block — business deals involving foreign firms.

president trump signed the legislation at an army base in upstate new york. rico hizon is in our asia business hub in singapore. hello, how are you doing, are you having a good tuesday? yes, i am. markets are looking good. always good to hear. what you make of this, what do the markets and people around you make of this? it basically tightens the news on foreign deals with an eye on china. this law, supported by both republicans and democrats in congress was basically motivated by us concerns that chinese companies are using investments and acquisitions to gain access to new technology. those worries are also behind the new us tariffs on mainland goods. this initiatives comes as other countries, including uk, consider ways to toughen their scrutiny of foreign deals with china. the new law does not simply

mention the mainland, but it directs officials to review whether the transaction involves a country of special concern that is demonstrated oi’ special concern that is demonstrated or declared strategic goals of acquiring a type of critical technology or critical infrastructure. the commerce ministry of china has also weighed on this latest measure of the united states and has said it will come pensively assess the new law and called for their treatment of chinese investors. it further stated that chinese and us companies have a strong wish to deepen investment corporation and potential, which is quite enormous. wait and see how this will impact in the us going forward. it is something to wait and see. rico hizon, thank you very much indeed. now let's brief you on some other business stories. tesla boss elon musk says he will work with the buyout firm silver lake and the investment bank goldman sachs as financial advisors on a proposal to take the electric car maker private. last week mr musk surprised markets when he tweeted that he was thinking about taking telsa private — and that he had funding secured.

profits have fallen at national australia bank by 3% and it's warned of higher costs to come. the bank is grappling with the fallout from a powerful inquiry into misconduct in the banking sector. the royal commission heard the bank charged customers for services it didn't provide. the austrian capital vienna has beaten australia's melbourne to be named the world's most liveable city. it's the first time a european city ha topped the ranking of the economist intelligence unit's annual global survey. it ranks 140 cities on factors, including political and social stability, crime, education, and access to healthcare. next week, greece is due to emerge from its final international bailout deal. while it's a symbolic end to the country's financial crisis, greece's economy is still fragile. one sector hard hit has been fishing. the eu has been paying local fishermen to give—up their boats

to help modernise the economy and retrain workers. but it's been a controversial move as philip hampsheirfound out in the greek coastal village of chalkida. dimitri is a 73—year—old builder who lives in a fishing village just 30 minutes outside of athens. each vessel is a handcrafted work of art. he has made 5—6 per year since 1962. demand for his boats is less than it was. fishing catches down in some places and as much as half and the european union has been paying his customers up to $300,000 to have their boats destroyed. 0ften customers up to $300,000 to have their boats destroyed. often they are lined up and a mechanical digger drives over them to break them apart.

translation: it is a great shame the boats don't reach the end of their life in a natural way. theyjust destroy the boats. it was matt one thing if a vote gets old, it is ok after 30 or a0 years to take it off the sea, it can't last longer, but to break it after ten or 12 years, it is very sad. —— boat. to break it after ten or 12 years, it is very sad. -- boat. the size of greece's enormous chris lamb is that almost everyone has a connection to the sea, it is a tradition, a heritage, something that has passed down from father to son or father to daughter, but wherever you go now in the fishing village as you'll see boats like this one that are being left to rot on the side will sometimes being actively destroyed. but not everyone is willing to give up but not everyone is willing to give up on their history. george is a 2a—year—old fisherman. he turned down the eu's offer so he could take

over his father ‘s boat. translation: yes, they have offered me, but they did not want to take it. i believe they could not do anything else after that. where would i were? in a factory? finding work is difficult. this is myjob andi work is difficult. this is myjob and i make a good living out of it. the eu hopes paying fishermen to quit will allow mediterranean stocks to recover, but in greece's coastal villages the policy remains controversial. that's it for the business briefing this hour, but before we go, pension holders are being tricked out of their life savings by fraudulent scams, according to city regulators. financial swindlers are taking advantage of the freedom for individuals to release their pension funds after the age of 55.

to combat this a new campaign's being launched to raise awareness, as kevin peachey explains. first to of the's trust was one and then her savings were lost, stolen by the fraudsters who offered a return that proved too good to be true. he wasjust perfect and i didn't think for a second is that anything was a mess, to be honest. it was just like he knew everything. i asked questions, he had the a nswe rs i asked questions, he had the a nswers to i asked questions, he had the answers to everything. kiss cam had begun with a cold call at a time when her finances were stretched —— the scam had begun. a followed by regular return push tojennifer and her husband into investing and losing well over £50,000.” her husband into investing and losing well over £50,000. i feel angry that we haven't had any compensation and that basically as outrage in life we have to start from scratch. they are not the only

ones worried about their financial future. hundreds, possibly thousands of people are trapped —— tricked by pensons mcg. in 2017 the average loss reported to action fraud was £91,000. now the city watchdog, the financial conduct authority, and the pensions regulator have unveiled a campaign featuring this tv advert warning people to watch out for the warning people to watch out for the warning signs like calls for a pension review or highrolling investment in hotels or green energy schemes. prevention is better than fewer. we want to give people handy tips to be aware of, particularly if they are being confronted by fraudsters. the top of that list is looking on the website to see if a pensions firm is authorised, a quick check to stop your money to support —— disappearing fast. this is the briefing from bbc news.

the latest headlines: there are still conflicting reports about the situation in the afghan city of ghazni. nato officials describe a four—day taliban assault on the city as a failed attack. bbc sources on the ground say there's still fighting going on and nearly 100 soldiers have died. the turkish lira has kept on plunging in value. the white house is denying that new american tariffs on turkish metals have caused the currency crisis. president erdogan has accused the us of stabbing turkey, a nato ally, in the back. facebook users in eight south asian countries will be able to watch top—flight spanish football matches for free under a new deal. it's the social media giant's biggest move into sports broadcasting, but the company said it was not about to start a mass buy—up of sports rights. now it's time to look at the stories that are making the headlines in the media across the world. we begin with the guardian, and the struggling turkish lira, which sent tremors through global currency markets amid fears the worsening financial crisis could have a domino effect

on other countries. meanwhile, the new york times looks at the russian rouble and how current western sanctions are pushing the currency down to its lowest level in years, as well as having a negative impact on president putin's popularity. the independent says uk firms are finding it difficult to recruit the staff they need after a fall in net migration from the eu. the chartered institute of personnel and development said a0% of employers had more problems filling vacancies than they did last year. the ft leads with tesla boss elon musk, who said saudi arabia's sovereign wealth fund had expressed repeated interest in funding a deal to take the electric car company private. his comments come as the us securities and exchange commission was investigating whether mr musk‘s original tweet on the matter was accurate. on the bbc news website, vienna has been named the world's most liveable city. the austrian capital beat melbourne for the top spot,

as well as being the first time a european city has topped the rankings. and, finally, they've been called the ugliest shoes ever made while millions of others love them for their comfort. now the makers of crocs, the foam clog shoe, have announced they're closing their final factory, although the brand denies that it's the end of their famous holey footwear. so let's begin. with me is james hughes, chief market analyst at axi trader, a brokerage firm. we will get onto crocs soon, all of oui’ we will get onto crocs soon, all of our kids wear them. let's start with