boycott us electronic goods in the tally isn't the sanctions by a washington this is all adding to this phrase on a turkish economy already in decline monica jones will have a story for you coming up shortly and do remember you can always find the latest on our web site as g.w. dot com including the situation in genoa. cut. the lead. they make a commitment. they find solutions. and stronger. africa on the moon. stories from both people who maintain a difference shaping their nation. and their continent of africa on the

move of stories about motivational change makers taking their destinies into their own hands going to double using multimedia series for go. d w dot com for go. turkey escalates the ongoing conflict with the us president and one blames washington for the near us all and threatens to boycott american products and all european banks are starting to assess their exposure to the crisis. also coming up the turkey crisis is raising fears about the potential for contagion in emerging markets many of vulnerable to shocks especially. have to do business targets president recha type ad or one has warned his country will boycott

the u.s. products in response to what he calls economic terrorism done by the u.s. he's referring to the trump administration doubling terrorist attacks many of the turkish lira appears to be pulling back from record lows off of the central bank took emergency measures rising prices are still hurting the turkish people president claims the united states has the lira as retribution for ankara's detention of an american pastor on espionage and terrorism charges washington had already imposed sanctions on turkey and last week announced plans to double import tariffs on turkish elaman human steel since then the turkish lira has lost a quarter of its value there to one says it's part of a plot by the united states to devalue currencies globally meanwhile russian foreign minister sergey lavrov already predicts consequences for the dollar. i'm sure that this grave abuse of the u.s.

dollar as a global reserve currency will result in the eventual demise of its role. while many analysts say that international concerns about into one's economic policies are behind the leader as crash the turkish leader speaks of economic terrorism by washington and called on his country to boycott u.s. made goods already kind of electronic we will boycott american electronic products if they have the i phone but there is also sam song of. there too one has also renewed a call for turks to convert their euros and dollars into turkish lira to strengthen the currency meanwhile analysts hope for the central bank to take action to restore confidence in the lira. not turkey has been highly profitable for many foreign banks in recent years thanks to high net interest margin now they are fears the economy's overheating had the lira slump is putting

pressure on companies and banks with currency loans as well as foreign entities exposed to them credit ratings agency fitch has cut turkey's sovereign credit rating deeper into junk and want of a hit to the global banking sector with a total of one hundred and forty three billion euros european banks represent broadly three quarters of all foreign bank claims in techie a study by dutch bank a.b.n. amro says spades dva is the lender most exposed to turkey with a third of its pretax profits derived from the country italy's unicredit is also strongly impacted and to a lesser extent dutch bank i n g h b c in britain and to be m.p. paddy power in france earlier i asked analyst tom kane months of the dutch bank a.b.n. amro how worried we should be about to take in terms of its potential impact on european banks the numbers as you say are quite large almost one hundred fifty

billion and now that does seem on the surface like if they cared line amount but for the european banks it is very little actually for especially considering the how strong and large turkey is the exposure by european banks has been very limited as you said b.v.a. is the most impacted but still it's only ten percent of total assets for the lender so it's going to be definitely a drug of profitability for a few lenders but not all of them all right so so no reason to panic just to get but nevertheless the situation isn't exactly good how to get out of this downward spiral you haven't as a suggestion. yeah well from our side it's just very clear that we need to have some assurance that the independence of the central bank is there and assured now once that is there then foreign assets and foreign money can continue to come in under the current legal framework that is the question whether or not there is an independence and in the meantime as you said turkey is going to have to pay say two hundred twenty billion in shorts on that which is going to have to finance and how

it's going to finance that that is the big question right of type add one already turns down the possibility of a loan from the international monetary fund or any aid from that some analysts now compare the economic decline of techie with that in zimbabwe venezuela both of course countries that used to be quite well off until politics destroyed investor confidence they are now they face default could turkey be the next in line. well the difference to venezuela is vost is vast around three times larger g.d.p. has actually been rather stable for the last few years around six percent think venezuela the last five years has negative g.d.p. so at this stage turkey is the can fall stronger on the actions that have recently occurred not purely fundamentally driven and i think that's the difference that we have a diversified economy with strong and stable outlook in some parts and it's just recently the other parts of the games impact the fundamentals well just tell us i

mean because we obviously we've seen some market jitters in the last week over the weekend seemed to be quite calm about the situation. why why this this panic that we see right now is it just a fight. well a different fitter for turkey itself it is it's a big worry it's a huge discussion now for all developing economies of what's going to occur now fortunately european banks have kept it really is a rising star import for years as a supposed to take it on big big money but as we've seen the other developing markets that it's hopefully unrelated india argentina south africa even of all struggled with their currency since there's as investors get a bit more realisation e.-m. is a risk all right to american months there from a.b.n. amro joining us there from amsterdam thank you so much for your assessment. so

far twenty eighteen has been a bad year for the currency of several emerging economies and several factors to blame but the dramatic fall of the turkish lira in recent days has prompted a major sell off to his currency has lost more than forty percent since the beginning of twenty eighteen due to surging inflation and latin america's second largest economy is also in trouble with the argentinean paizo sliding at an ever faster rate south africa's rand hit a two year low due to a sluggish economy and india's rupee and the russian ruble are also down the rupees fall is partly due to rising oil prices and the ruble has been negatively impacted by sanctions so argentina struggled hard to avoid bankruptcy only a few years ago its central bank has taken the nuclear option of boosting rates to exile buttons highest as it tries to maintain stability. almost thirty argentine pesos for one u.s.

dollar that's a ten percent drop in value since last week the country's merivale stock index also took a hit the turkish nearest decline is starting to show in south america's second largest economy. get emotional care was there a safe i think we will see six months of this complicated situation with a drop in activity high rates of volatility in exchange rates and the level of difficulty in financial markets here if you were going to go off and say you know a graft scandal is putting additional pressure on argentine markets more than a dozen former government officials have been arrested for allegedly paying bribes to the construction sector the central bank amid all this hiked up its interest rate from forty to forty five percent in a bid to stabilize the faltering peso it said it would keep the rate at this level until at least october. now meanwhile the political some of break here in europe has come to an end and things are starting to move in the euro zone let's get the

details now from one of the frankfurt stock exchange and that is none other than early good to see you first of all other leave we have some fresh economic data coming out from the block and it's not too bad. it's not too bad you know and economists they're factual people you don't see them waxing poetic a lot but today one of them said germany is on track for a golden decade with these g.d.p. numbers from the second quarter zero point five percent growth healthy figure and more than people expected and what's more also the growth figure for the first quarter was revised upwards consumption strong consumers spending money contrary to the belief that germany german people save all their money but they have good jobs secure jobs they're earning more that's a strong point as the state spending as well and the picture extends to the euro

zone itself as well the block as you say zero point four percent also a good number and countries like spain and the netherlands actually growing faster than germany well maybe that prospect of a golden era through germany has prompted the german chancellor angela merkel to comment on planned euro zone reform at her first public appearance since all the days. that's right she said that she could imagine having a budget alone for the eurozone not as a separate budget but under parliamentary control of the e.u. parliament has no need for for an e.u. finance minister but she is taking up on talks that she had with the french president of money when my call earlier in the summer it's venting towards creating something that will perhaps force investment in the euro zone and provide a buffer in case of crisis a very interesting proposal seems to be moving on the politicians want to propel this forward as well but of course the devil is in the detail all sorts of

questions to be answered on how to implement ok and that's when we turn to you again for the ounces think is about shirley bassey frank fit. and just enough time for this the austrian capital vienna has been ranked by the economist as the world's most livable city it is the first time a european city it leads the annual survey by the economist intelligence unit secured an almost perfect score of ninety nine points out of one hundred each year one hundred forty cities and ranked by living standards crime transport and stability. now you have it that's your business update your anti w. thanks for keeping me company. looking. to cut. cut cut cut cut.

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