Egyptian Army Downplays Talk of Military Coup

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July 4 (Bloomberg) -- Egypt’s army has ousted President Mohamed Mursi after he defied mass protests calling for his resignation. The military also suspended the constitution in a move it said was aimed at restoring stability. Elliott Gotkine reports on Bloomberg Television's "Countdown."

The big concern is there could be an upsurge in violence from the muslim brotherhood or mursi's supporters, who would feel somewhat disenfranchised, cheated of the election victory they waited a decades to have.

At the same time, we do not know if the army will stick to what it says.

If it will overstay its welcome, or if there will be fresh elections soon.

When the head of the armed forces spoke on national television television last night he was quite certain as to how the protest would play out.

We will free the constitution temporarily.

The chief justice of of the supreme constitutional court will be sworn in in front of the general assembly and call for early presidential elections.

The chief justice of the supreme constitutional court will rule rule the country during the transitional period.

The other uncertainty is exactly how this plays out in washington.

Barack obama was very careful not to label this a coup when he called for egypt to have a swift return to a democratically elected government.

The problem is u.s. law precludes the americans from providing military aid to countries that have experienced a military coup.

Egypt receives 1.5 billion dollars from the u.s. every year.

It seems unlikely the u.s. will touch that, given how that is linked with the peace treaty with israel, which receives even more in military aid from the u.s. every year.

Certainly it will cause concerns in washington.

Continuing to negotiate for the $5 billion loan with the imf.

It is unclear if that process will be further delayed.

It has been delayed with two years now -- for two years now.

If it is further delayed it will take egypt even longer to get that much-needed disbursement.

The state of the egyptian business and the egyptian economy is one factor at the heart of this.

What has been the reaction from business?

From the business people, the former mode -- former finance minister we have spoken to, none of them seem to be sorry to see the back of mursi.

The situation right now, though it is one step further down whatever process egypt is now going through, we still have a lot of uncertainty out there.

I spoke with the head of economic research at the american chamber of commerce after mursi was ousted.

He said it was positive for egypt, but a lot depends on who they get to head up the economy ministry to turn things around for the economy, which has been suffering so much the last couple years.

Are we calling this a coup?

There is a lot of comment on this topic recently?

I suppose you could argue if they have a factory -- if they have the backing of the majority of people it is perhaps not a coup.

If you read the dictionary it will tell you it is a coup.

I suppose was stout that they have would dictate it.

One thing we know for sure, the military has intervened and ejected president mursi from office.

There was no blood spilled in that action, but we have seen further violence tonight.

Whether it was a coup or not is up to barack obama and the u.s. congress to decide.

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This text has been automatically generated. It may not be 100% accurate.


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