After a tense session in parliament it seems like catalonia will remain in spain at least for now the regions president announcing further talks and International Mediation to get the reaction from the business world. Also on the show with many bankers relocating to frankfurt even before breakfast search for schools and kindergartens is getting tough. And the i. M. F. Is confident the World Economy will grow stronger than expected well tell you why. Its time for business on the w. B. And how you got to get us welcome to the show and well start with what could have been a backlash for europe that never came investors are breathing a sigh of relief after catalonia didnt declare independence today once again calling for dialogue instead the euro rallied on the announcement in the Catalan Parliament its now trading at over one dollar and a team hasnt been that high since before the october first referendum all eyes are now on spains main index it was down almost one percent before the news from barcelona but could also be headed for a rebound when trading resumes its been dragged down by bank shares with catalonia as big lenders threatening to leave the region if it splits from spain the unfolding situation in spain affects all Industries Including those that have made catalonia spains export leader sparkling wine the famous scot for instance is a multimillion euro industry that now faces an uncertain future and is trying to take action and to supporting troubling times. One of catalonia is best known exports comes from these vineyards northeast of barcelona the grapes grown here and up in bottles of cava a sparkling wine enjoyed all over the world but uncertainty is growing along with the grapes thanks to catalonia as tug of war over independence the company is behind two of the regions iconic brands fresh annette and co dont you are considering reregistering elsewhere in spain. At first i thought independence was a good thing. But now theyre making it so difficult really i dont know if my vote was good or bad. Just gone for senate and my very Companies Like fashion that and cotton you are pretty thick by that dont affect me so much to be on. The banks. Too big banks have already relocated away from catalonia at least on paper spains fifth largest lender sabba del and its Third Largest bank like catalonia as winemakers they fear that if the region split from spain theyd be cut off from the security of e. U. Law and theyd be out of the euro zone. To a country that has declared independence at least from the e. U. Yesterday the british Prime Minister told the parliament in london that the ball was now in the court but many banks in london are not waiting to see what will happen they are already moving their european operations to cities like frankfurt here in germany so they can keep access to that you the affected bankers want the best for their families so they are now in a rush to find apartments and schools and kindergartens for their children. Some ten thousand new jobs are expected to spring up in the frankfurt area as a result of break that. Real estate broker stefan pointing observes developments from up high and senses change in the air but believed that fund of course breaks it will boost frankfurter will be renting an extra fifty thousand square meters of space thanks to break and were also sensing a second wave in the making. The Companies Providing services to the banks are also increasing their staff numbers out of frankfurt wasted no time for motoring itself as an alternative home to banks leaving london its a development that could benefit the entire region. And talk not about us on the very first day after the referendum we activated a website explaining what its like to live and work here. Instead of using billboards the frankfurt Marketing Team contacted banks directly and discovered widespread interest except for certain reservations when it came to families. And team people asking about International Schools and being assured that people here speak sufficient english. Peoples arriving in the metropolitan school in frankfurt in ten years people numbers here of mushroom from fifty to five hundred and the building itself continues to expand as seen from the scaffolding from the previous extension. Principle pitta feathers used to be an investment banker in london himself and is now receiving a growing number of inquiries about his school from that city. It happens every day because were still growing physically were able to offer individual places for all school grades. The school has yet to be overwhelmed by families fleeing braggs it although elsewhere there are indications of change. We were just about to buy a house for the summer and a banker came in from london and snapped up when it was just within our grasp so yes weve already feeling the effects of. School places and office space evidently an ample supply in front of what is likely to become a rare commodity thanks to the break that in fact is Affordable Housing for the new arrivals. So Corporate News now weapon maker be a east systems wants to lay off almost two thousand employees most of the jobs will be lost and their military division according to Union Sources two factories in Northern England will be affected by the cuts thats where the euro fighter jets are being built right now be a he has already cut back on the jets production the company is waiting for a large order from saudi arabia even though the emirate of qatar just purchased twenty one sorry to twenty four other euro fighters. Well the Independence Movement and catalonia the ongoing brechts of talks and recent troubles in turkey its all not that bad at least thats how the International Monetary fund seems to look at it its optimistic for Global Economic growth the washington based institution the said its forecast for twenty seventeen and twenty eighteen is now higher than expected twenty point six percent for this year and three point seven percent for next year the i. M. F. Describes the current economic upturn as the broadest in a decade pointing to stronger than expected upswings in europe china japan and the United States as well as emerging countries in asia good times ahead from the perspective of the International Monetary fund but how does wall street see it lets bring in our financial correspondent in new york you call to yes hi good to see you now do you think investors share that optimism that were seeing from the i. M. F. Well i mean no rest on wall street do not necessarily need the opinion of the i. M. F. To make up their minds if the economy looks brighter or not in the past couple of weeks months weve got some pretty solid economic reports here in the United States just past week we had the best reading from the industrial sector from Industrial Production in about thirteen years the car industry seems to be doing a bit better at least we got some hints on that from the latest car sales so here in the United States overall the picture does look pretty bright and for sure it didnt hurt that the i. M. F. All saw actually higher the expectations a little bit for this year and next by the way the i. M. F. Also dustys some risk especially when it comes to protectionism i mean thats a tendency that we might be seeing all over the globe not just from the United States itself and they also some geopolitical events and also could distract overall Global Growth but bottom line as we did see another record day here on wall street we are shy not even two hundred points for the Dow Jones Industrial average to reach twenty three thousand points for the First Time Ever but we did not necessarily need the i. M. F. To achieve this goal. In new york thank you very much. We stay in the u. S. A diplomatic dispute between the u. S. And turkey is making investors nervous on sunday the u. S. Stopped issuing nonimmigrant visa and turkey a decision it said was based on security worries turkey retail he added hours later by freezing u. S. Passports out of its electronic visa system and while thats tough on travelers the impact of the spat is also being felt on turkeys markets. More than three hundred thousand turks flew to the u. S. Last year in turn almost four hundred sixty thousand americans came to turkey the visa dispute threatens to cut off this important stream of business travelers and tourists. The rao had immediate consequences on the Financial Markets shares in Turkish Airlines lost up to eleven percent as the week began. Nervous investors sent turkeys main Stock Market Index tumbling almost five percent one point. Tension with turkeys allies a series of terror attacks and above all the fallout from last years coup attempt all this has weighed on the turkish currency the lira has lost half its value over the last three years. And turkeys double digit annual inflation rate makes turkish exports cheap but it diminishes turks purchasing power. Another danger is turkeys high level of Government Debt it has to repay more than one hundred seventy billion dollars over the next twelve months ankara now wants to carry out further Structural Reforms in order to stimulate the economy it hopes that will encourage Foreign Investment but investors say that some likely without political stability. Before we go shares in kobe steel plunged almost twenty two percent in tokyo on tuesday after more companies came forward to say the steel maker had supplied them with products that didnt need specific ations minutes sunday it had falsified data for el nino and Copper Products that it had shipped to some two hundred Companies Said about four percent of production was affected the parts were used in airliners cars and high speed trains its customers have been scrambling to find out what has been affected and whether theres a safety. Thats all for this edition of business they very much for joining us see you next time take care good bye
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