you're watching the japanese coming up ahead tensions between turkey and the u.s. are weighing for the on the turkish lira it's reached a record low against the dollar today. guess what it has been have that story for you shortly as well as other business to stay with the news if you get the boot. you. where i come from we have to fight for a free press and was born and raised in a new town of the painter she protests one to the shadow and if you newspapers when official information as attorneys i have worked on the streets of many characters and their problems are always the same fourteen the social inequality a lack of the freedom of the press. corruption weak on the floor to stay silent

when it comes to the sounds of the human scene a right to fools who have decided to put their trust in us. my name is jenny harrison and weren't. as the u.s. imposes sanctions on ministers and turkish president of the once common that's over the case of an american pastor held in turkey but it's fresh low inflation a fifteen year high. washington miles new sanctions on iran and western companies and investors are getting cold feet because president trump has threatened to also punish those trading with iraq iran.

business. turkey's dispute with the united states over the fate of u.s. pastor bronson is threatening to further destabilize the lira the u.s. had imposed further sanctions on two ministers and president russia. after months of plunging exchange rates the turkish currency has now had a fresh low against the dollar inflation also rose again in july to nearly sixteen percent a fifteen year high increasing pressure on the central bank to hike interest rates . for days one issue has been dominating the front pages of turkey's newspapers. the country stacked with the united states has fueled fears a full blown economic turmoil. at the center of the dispute is u.s. pastor andrew brunson's seen here in a white t. shirt turkey accuses him of helping to plot a failed military coup in twenty sixteen after spending twenty one months in jail

he was transferred to house arrest at the end of july. that didn't go far enough for u.s. president donald trump who swiftly imposed sanctions on two senior turkish ministers . that in turn caused the lira to slide to a record low against the u.s. dollar continuing and already existing trends take a look at this. as you can see the number of turkish lira you need to buy a dollar has been rising since the beginning of the year but in august a record was set five turkish lira now by new just one u.s. dollar on surprisingly on the streets of istanbul the mood is far from the. things aren't going in a good direction it's terrible that one u.s. dollar is now worth five lire we're ready have financial problems i don't approve of it things will get worse that's what we're expecting. turkey's dispute with

washington isn't the only factor affecting its economic prospects concerns over the independence of the country's central bank president ed one's ability to tackle soaring inflation are among other issues weighing on investors' minds. and this just goes beyond just this dispute between the us. let's bring in. his professor of economics at the university of. constance and joins us now from. how dramatic is the situation in turkey and how is everything. you know we need to see that these sanctions imposed by the u.s. are so cold smart sanctions and they want to very specific problem but at the same time they tried not to harm the whole economy so the direct effect of the sanctions i would not see a big one i would not expect a big one the reason why we have seen such

a big reaction last week on the exchange rate originates from the general problematic economic conditions inflation has risen again current account deficit is increasing so the country is moving towards a serious financial crisis day by day a crucial question is the sanctions have a signal and the question is whether other countries will react in a similar way and their financial investors serving the reactions very clearly turkey's worship with europe is also on the rocks but what role can the e.u. play in this dispute. yeah exactly the question is the americans have reacted very clearly we cause a one single pastor there are thirty german citizens and there are increasing war says that europe should also take such strong steps but one need to bear in mind that turkey has different interests with the european union compared to the us or

west worse that we have a migration deal as europeans with turkey we have also this financial integration a large extent of these loans in dollars and your terms for turkish companies are coming from italian banks or spanish banks so i'm skeptical that europe can act as heavily as the us with respect to sanctions and the question is also whether we should do need because a collapsing financial system in turkey will have had a cost also for europe just let's talk with more about that is a is a collapse really eminent and in which way would it be limited to turkey turkey or would it would it have further consequences. so it is no exaggeration that turkey is moving towards a financial collapse because it's a tragedy how can an economy stabilize the exchange rate and the current account by

keeping this high growth rate so there is no signal that there is a political will to reduce its kinds onsen based growth rates at the same time if this collapse comes of course we have a large amount of loans in italy and we know at the same time that italian banks have been in troubles for months or just remember after the elections how critical the situation was in europe and if turkey the financial system collapse in turkey the central bank in europe has also again to bail out italian banks and that will trigger a political conflict again and europe so in this bigger picture. destabilizing turkey is not in the interest of the european union i don't they are saying thank you very much for this analysis. and iran demand remains high for stay healthy on industrial equipment but a growing number of companies and potential investors are getting cold feet to do

business that since president threatens to punish those trading with iran but a joint statement from the european union's foreign minister says that the bloc will do what it can to help keep tried routes open. as the middle east director of german packaging machines maker multivac amir so today often works weekends to. he's based in the united arab emirates and serves customers in afghanistan pakistan and the gulf states. today a customer from tehran has come to look at a machine for packaging fresh dates demand remains high in iran for state of the art equipment. but since washington announced its withdrawal from the around nuclear deal and new sanctions amir so today has been struggling to make money in his native iran we see recent developments or changes in these. agreements i would say it's more mental. difficulties into the market and lots of

banks even again and lots of investors are just watching and observing what we did future because that's the still not have a clear picture for any big company is how it goes. hopes were high when iran emerged from international isolation three years ago following the signing of the nuclear agreement in business terms of a market with eighty million consumers together with huge demand and potential for a modern infrastructure and production machinery while there have been preliminary talks and very tentative plans on joint ventures so far new international investment has barely materialized likewise based in dubai swiss consultant z. mon funda advises european firms looking to do business in iran. he's noticed a growing number of companies getting cold feet since president trumps threats to punish those trading with iran. they also wanted to know what's in this is

commitment required to do good business in iran is enormous despite the profits to be potentially made right now companies see the costs involved just too great a risk. on me since i so course is a simple sales manager amir so today can only hope for better times for now he is continuing to offer after sales service to his a rainy and customers even if currently they cannot buy any of the machines each costing several hundred thousand euros. we are getting more difficult because every bank has to take it to do it on business and they don't like to do. any transaction with iran so a lot of customers they don't know how to pay for our service charges and how to support. and this can be the big challenge european technology is in demand in iranian industry but chinese and russian firms are ready to fill any gap in supply which for multivac would mean a serious loss in business. corruption is costing ukraine billions that

it can't afford and that's according to a german newspaper report which estimates the state is losing more than four billion euros in tariffs alone that's twice as much money as the country hopes to borrow this year from the world bank i.m.f. and the e.u. combined the report describes how importers and customs officials falsified customs declarations at the country's ports to save on fees it says police and prosecutors involved. china says it's prepared for a long trade war with the u.s. the statement comes after a series of tweets from president donald trump praising the effects of trite tires is followed beijing's publication of a new list of retaliatory tariffs on u.s. products that came in response to washington's threats to impose new duties on two hundred billion dollars worth of chinese imports of chinese state media to trump

calling tariffs extortion. focus on asia. to be paying off the london based bank says pretax first half profits rose four point six percent to seven point two billion dollars last year as you see. concentrated more intensely on china and southeast asia said it i am to be the main global lender behind china's infrastructure projects across asia and africa h.s.b.c. is europe's biggest bank but earns most of its profit in asia. that said thanks for watching i.

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