you're watching news still to come argentina's currency collapse claims its first victim the construction sector with thousands of jobs on the chopping block. held on free we'll have that story coming up for you in business. such. beings on beethoven. his work in the gardens for to know. the mushroom intrigue. children twenty two. we make up over a week what does over half of the under the tree five we all of the civil service

or. the want to shape the continent's future research good morning enjoy number two number stores especially share their stories their dreams and their challenges. the shift in sherman percent. platform for which during. the little. ones of beacon of hope and now concerns of a crisis rattle emerging markets currencies place traders they nerves of steel and spare a thought for consumers as prices climb. and a victim of that very crisis all ginty you know the construction sector that prepares to shed thousands of jobs as government cops come into force. i'm saying ciao to street food to sleaze clamp down on eating snacks on the.

is your business update on how that all that you could join us wherever you know right now it seems emerging markets once a beacon of hope are in meltdown with their currencies losing value dramatically the turkish lira the argentine peso south africa's rand indonesia's repay it to name but a few currency traders are having then tested but of course it's far worse for the people living in the affected countries. a supermarket in the turkish city of dia but here things used to be a lot busier here but rising prices hitting sales is that. we're forced to increase the prices of the new products we buy him that we raise the prices in accordance with the profit margin of course our people no longer have as much purchasing power used to be able to fill a shopping cart for two hundred lire but now it costs them three hundred to three hundred twenty five percent of the. price as a climbing because the turkish lira has lost so much value against the dollar in

the first half of this year it plummeted by a stunning seventy two percent. south africa's economy is also stuttering that country's currency the rand has lost a full thirty percent against the dollar south africa is now considered just being in recession following two quarters of falling g.d.p. . india is also not fairing too well right now the rupee has lost ten percent against the dollar since march this year but argentina's been the worst hit so far austerity measures have unleashed wave upon wave of anti-government demonstrations the unions take to the streets of when a star is on an almost daily basis argentina's paizo has lost eighty six percent in value against the dollar over the last six months. and we're joined now by a holocaust meeting chief economist at bear in bag bank good to have you with us today took us through the turmoil that we're seeing in emerging markets firstly what is driving this crisis. there are two things that are driving this crisis the

first is that many emerging markets simply had times that were too good to be true too good to last in recent years so there is some belt tightening there is necessary and secondly what we also see that those emerging markets that have significant debt in u.s. dollars and significant current account deficits those are struggling at a time when the u.s. federal reserve bank is raising interest rates it's interesting that you mention the u.s. federal reserve there as contributing to some of this crisis and so it's not actually this time trade policy trumps trade policy that is causing this turmoil. trumps trade policy contributes a little bit here and there but it is not one of the major causes of this particular turmoil for instance drums tweets against turkey do play you wrote in the extent of the devaluation of the turkish lira but they are really not the

reason for that and how real is the risk of contagion to other markets there is some risk of contagion however contagion to be confined to those emerging markets that are fairly vulnerable again the vulnerable ones are those with significant dollar debt and with significant current account deficits which means they are to some extent living beyond their means other countries such as those which have little dollar debt and which are exporting more than they import those other countries should be mostly safe i think we do have to ask the question as well you know we're not just talking about emerging economies but what is the risk to for example european union countries germany for example. the emerging market crisis will probably cause a bit of a dent in growth in heavily export dependent countries such as germany quite a few others in europe and possibly in japan but at the same time the single biggest export market for most countries namely the united states is expanding rapidly thanks to the tax cuts which we've seen over there so in many cases more

exports to the us to largely offset the decline in exports to quite a few emerging markets holger schmieding what's the remedy. the remedy is that the one about emerging markets need to tighten their belts they especially need to regain credibility they need to raise interest rates to attract some money and they need to desist from stupid policies such as the fight which took as seems to be picking with quite a few people including people in the european union and the us president bush meeting chief economist at bamberg bank thank you very much you're welcome. and immediate casualty of the crisis in a merger marcus's argentina's construction sector is set to cut some forty thousand jobs in the coming months as high interest rates hurt financing and the government scales back projects to cut its budget deficit the government announced ever off to the starting measures this week as it seeks to slash the deficit restore confidence

in the peso which has lost more than half of its value so far this year but those measures won't come in quick enough for those working in construction its large public infrastructure projects like this railway line in buenos iris that will take the biggest hit argentina central bank is holding interest rates at a punishing sixty percent to try to curb high inflation and halt the pesos slide that's making it difficult for local contractors to secure financing for projects or to buy imported materials and that means that after several years of growth in the sector jobs will have to go. and you are one going to get on the end of the month a sector was taking on people creating jobs through twenty seventeen and into the first months of this year then in the crisis in may things changed that's when employment started to change it was negative and now every month jobs are being lost between may and june about five thousand six thousand people

a month lost work. it's estimated that forty thousand construction jobs will get the axe to allow for government spending cuts as when osiris tries to balance its primary budget that will have a knock on effect on other sectors president mauricio mockery is pushing the tough new measures as he seeks to convince the international monetary fund to speed up the payment of loans under a fifty billion dollars financing deal reached in june but a shop slowdown in construction would deal a heavy blow to an economy already tumbling into recession it will also be a hurdle to mark greece bid for reelection next year. one week off the us president donald trump's deadline for the trade talks with tannadice are wrapped up there's still no agreement that canada's top diplomat chrystia freeland says there is still goodwill on both sides officials from both countries worked through the night on a number of issues the u.s.

wants an end to subsidies because of these canada's dairy industry and the right to enter the media and communications markets canada wants a mechanism to resolve trade disputes that doesn't involve going through the lengthy us court system to say only that progress is being made. germany's export is a thriving despite punitive tariffs and other trade barriers new figures show that in july germany said one hundred eleven billion euros worth of products brought that was a rise of seven point six percent on the previous year to mond was especially strong and european union countries but imports well they also grew strongly twelve percent on. at last he is touting. if he has been flying british airways recently this next piece of news might apply to you the airlines reporting a data breach of personal details when three hundred eighty thousand payment costs the personal financial details of customers who booked flights between the twenty first of august the fifth of september was stolen the data breach affected

customers making bookings on the company website and mobile app british airways says travel and passport details were not taken the airline advises anyone who believes they may have been affected to contact the bank or payment call provider and that it will settle claims on an individual basis. now in some cities street food is all the rage right now but if you're headed to florence to grab a slice of pizza with a view of the palate c.e.o. of a q you might have to think again since he's joining roman venice in restricting where when tourists can eat false food on the street it's a beautiful day in florence masterpieces over in a sense architecture everywhere and everywhere tourists munching fast food anywhere they can find a seat the locals say they're a nuisance tourists say they have no choice there's not a lot of place to have a lot of feeds and table so sitting on the three the three only solution. but that

may soon come to an end the city will now issue fines of up to five hundred euros to people eating on the streets of the city's historic center. many restauranteurs say it's high time. he has long objected to tourists eating fast food in front of his restaurant. you. know i like this new law and i think everything that's done by retailers institutions citizens in order to improve the streets receives our support of. the food. but restaurant owners are losing income is only one of the problems brought in by florence's plague of fast food tourists they also leave a mountain of rubbish in their wake rome and venice have already taken action. or until with the fact that mum cut these rules are not practical for tourists we can't eat at a restaurant every day we get a sandwich to save time to move. the new rules are posted prominently in florence's

tourist areas about the city will soon see if it's hardline we'll learn to risk respect. europe today with the latest from the world of business remember all the latest is on our website of course. you can also follow us on the social media channels as well twitter. i've had a free. thanks. to you again.

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