tellsturkey's president bloomberg his country's central bank did the right thing by cutting rates and it should continue to do so. the turkish leader also accusing the u.s. of failing to live up to its obligation saying it is highlighting a cleric and backing kurdish fighters that it considers terrorist. and a data dump. yahoo! says the personal details of at least half a billion people were stolen in 2014.

very warm welcome to countdown. getting some breaking news reflecting that conversation our editor in chief and the turkish president in turkey urging private banks to follow the central bank on rate cuts. that was the message from the president to the country and to the financial markets and to the central bank perhaps but that is the story we are bringing you this morning. plenty more from our conversation as we go through the program. let us go back to the markets. it has been a fascinating week terry where do we find ourselves this friday morning? i have a chart here showing the fed factor. saw in a rally that we equity markets in blue and the developed sovereign bond market in white and a bit of retrenchment that we saw in the dollar index. we took a step back and reassessed how long central-bank globally would remain lose as

as fed -- would remain loose the fed decided. we have had some diverted views on just how long we can bank on those rallies in bond markets. from the likes of greenspan and others. let us put up the risk radar. away from the picture of the week, this is a picture of the market right now. asia-pacific pulling back a little from the rallies we saw through the week. as we see the dollar and oil changing direction a little. pausing for thought perhaps. the dollar index is fairly flat this morning and dollar-yen at 101.1. moving away from the 100 market that we saw it at earlier this week. and the yen retreating, down 0.3%. goldman sachs staying with that week yen bets.

wci, 49.79. down by 1.1 percent. the saudi's and the iranians met yesterday for the second day. algeria looms large at the end of the weekend into the start of next week. let us get the bloomberg first word news. good morning stephen. yahoos says personal details of at least half a billion people were stolen in a 2014 hack. the company says the attacker was a state-sponsored actor and the stolen information may include names, phone numbers, rates of birth, passwords and security questions and answers. users are being contacted and their accounts secured. comes ahead of verizon's acquisition of yahoos web assets. according to people familiar with the matter, in agreement

could be announced within weeks the no final decision has been made and the talks may still follow part. this comes five months after bats is pursuing ipo. -- lowe bank profitability and mounting legal costs. social democrats discussed the lenders both at a closed session. the matter comes after the u.s. -- related to mortgage-backed securities. european central bank president mario draghi says center banks they seect when systemic risks. speaking at a conference in frankfurt, he says also policymakers must remain vigilant. >> macro prudential policy is still in its formative years and policymakers are understandably cautious about deploying novel instruments. see systemic risks,

we should act. greater risks arise from in action. reporter: first round for a arerolling stake in a grid due today according to a person with knowledge of the matter. the company is selling at least 51% of the units with a total value of as much as 12.6 million pounds. national grid has declined to comment on potential bidders. protesters have taken to the streets of charlotte, north carolina for a third night although the latest protest has been largely peaceful as police aseased video that could -- police refused to release a video that could resolve an issue regarding the killing of keith lamont scott. global news -- global news 24 hours a day powered by our 2600 journalists

and analysts in more than 120 countries. you can find more stories on the bloomberg top go. this is bloomberg. anna: let us get to the market action. juliette saly has details for us. today's trading day, we have japan back. it looks different from the trading days earlier this week. juliet: it seems like it does not take a lot to disappoint investors. they stayed exuberant yesterday on the idea of cheaper money for longer but we are seeing sellers take control today. that is peering the weekly gain that we saw on the overall regional index. coming back online after the public holiday yesterday falling 0.2% on late trade. also have the yen retreating. goldman sachs retreating -- reiterating its long-term view that the yen could weaken further and the boj signaling

that they may intervene to counter appreciations. there has been a good rally on the afx 2000. asx.e there has been a little bit of buying coming through in late trade in korea. but this selling coming through the asia pac markets led by the decline in consumer and banking stocks. although energy -- although energy and health care stocks are doing well. we are also watching in japan, toyota, the biggest drag on the overall regional index. sony looking quite good. it has announced a partnership agreement with the biggest movie theater owner, owned by a chinese investor. have a look at this. in australia, up by almost 6%.

this is ahead of a doomsday destroyer ride to be launched at a theme park on the coast. i can tell you that it is freezing in the studio but the thought of that warms me up. thank you. let us move on. we returned to the top story. the turkish president says the country's central bank was right to cut rates last week and should continue to do so. the comments came hours after policymakers lowered turkeys overnight lending rate for the seventh straight month. says lower editor rates are needed. >> i see the last central-bank rate cuts as balanced. because it is not right to make sudden moves, up or down that andd contain some violence

create a tremor in the economy. but i believe it would be beneficial to continue this steadily. and right now, this new administration of the central-bank since they took office, they have been carrying out cuts, taking into consideration the interest rate policies of the government. and i think this is an important signal, especially for investors. bankse is that the other will take this signal that the central bank has given that they also he did and accordingly -- that they also heeded. you remove that much investment from that country. in a country where there is no investment, we cannot talk about development. we can only talk about development in a country where

there is investment. we have been pushing this issue, but we still have not seen the speed and stability in the investments that we wish to see. if interest was low, investors would get credit immediately and start to invest. high,nterest rates are they cannot invest. this, our despite investors are making investments. i say let us look at america as an example, europe, japan, and accordingly, let us bring interest rates as low as possible. anna: the president also blasted the u.s. for harboring a cleric it accuses of organizing july's failed coup. >> since there are 65 countries in the coalition, let us get together.

dash. bring down have no doubt, together we can do it. andif you get up distinguish among terrorists, you are harming turkey. we are disturbed by this terrorist group you are defending. a threat to our country. by giving them weapons, you are strengthening this threat to our future. the president speaking to our editor in chief. we will bring you more of that interview with turkey's president throughout today. joining us now for the rest of this hour, a global market strategist at j.p. morgan. good morning. talkingthe president about geopolitics and also about the business climate. he is talking about how interest turkey,d to go lower in

is he talking sense or interfering in policy? easy answer is both. he is right and the basic economic principle, lower rates could institute growth. good that the central bank is acting as much as it can away from the political situations. unusually have independent authority. a couple of things the central bank in turkey has been doing -- they are working at simplifying targeting measures. that is making it easier for investors from abroad to be more comfortable and able to understand the policy changes that happened in turkey. the step forward is good. anna: i know you have been suggesting at j.p. morgan that rates will continue to go down decreasingn -- as inflation is not so much of a

problem. what about the investment case in turkey? with all of the geopolitical concerns? concernse geopolitical are a topic area of concern. especially in turkey. when of the reasons we like em on a whole is the stabilization, but they do not have the head when benefit of oil stabilizing. newre looking more at the stocks in turkey and seeing a bitaway -- and staying a away from anything that can be affected by the geopolitical. it can affect the entire country and there is caution on turkey as a whole. anna: i have a chart that shows the rally revived. etf getting market a boost after we heard from the fed this week. has that changed your view in emerging markets? guest: we still do expect the

fed to start acting fairly soon so given that, we cannot say that the higher interest rates in the u.s. is a no risk event em.the m -- for well below the long-term average for emerging markets and with yields across bonds and equity stocks not giving you that much, the emerging markets are looking at bringing investment -- bringing investors in. like -- you were dissecting the emerging market around those countries that have a commodity cycle and a booming middle class in a consumer environment. turkey, some of the north african countries with big ,opulations -- you need new young consumers who want to buy things and supply their flats

with things and go to the university. education, health care cater to that growing young middle-class. anna: stay with us. here with some of your highlights. it is a big morning for european pmi data including the eurozone. harker p.m., u.k. time, and mester will participate in a lockhart panel. we will also be getting rate updates from the u.k., germany, and esm. coming up, the wrong kind of inflation. facebook says it has been giving inflated video metrix. how upset is the marketing community? directing investors to the corporate debt market. labor pains. jeremy corbyn looks set to win

the uk's labour leadership. conversation,at this is bloomberg. ♪

anna: welcome back. this is countdown. news from hong kong. hang seng is down by 0.25%. broadly reflected in the msc i msci-pacific -- asia-pacific index. i am in hong kong. yahoo! says the personal details of at least a half billion people were stolen in a 2014 hack. the company says the hacker was a state-sponsored actor and the

stolen information may include names, phone numbers, passwords and security questions and answers. users are being contacted and their accounts secured. this comes ahead of verizon's plan to acquire yahoos web assets. facebook says it has been giving advertisers and inflated metric for the average time viewers watch a video. they have seen the popularity of revenue growth. facebook says the error has been fixed. it did not impact billing and it has been notifying advertisers. shares fell. bats. an agreement could be announced within weeks. apart.ks may still fall this comes five months after bats went public. it's shares -- its shares

surged. -- a potential market value of as much as 20 billion euros. renewables ofe its parent as germany's biggest utilities take steps to ease the difficulty. and a ceo says brexit is bringing more luxury buyers to london. he spoke to bloomberg after the reopening of the spanish steps in rome, restored after a donation from an italian jeweler. >> we attract tourists from across europe. that things have shifted to the u.k.

but we might have lost from some european countries we have were then regained from tourists in london. reporter: that is your bloomberg business flash from hong kong. anna: just me this morning. more of the pie in london. a dustup about japan. the bank of japan's mission to control government want yields is altering just days after it was announced. the 30 year and 40 year that deals have tumbled. announced that he plans to control bond levels but he failed to convince traders that he has the tools. our guest from j.p. morgan is still with us. this is the spread between the two and the 30 year jp -- that is widening.

in the couple of months before we got this announcement and now it has been falling since as if the curve is flattening. what do you think the boj wants to achieve with the yield curve? guest: the shape will be interesting. the 10 year rate is there hoping to target. when you want to protect the probability of your institutions, you need a state -- a slightly deeper yield curve. in the past few weeks, we see on the chart the flattening on the curve. the boj would like it to be steeper. things can take a couple of months or even a couple of quarters. we will here soon, next week, on how they want to start purchasing in what volume, of what maturities. produce aey can

better yield situation in japan. anna: we understand next monday early morning london time. were you impressed by the creativity of the boj this time around? it seems to shift attention away from the means of stimulus more towards the ends. guest: it shows central bankers still have a few tricks up their sleeves. has been quoted as being the one who has run out of tricks. was a bit mixed but generally positive. most things like this one have to take a couple of months for us to see if it is effective. anna: is it so easy to make the yield curve look like you want? why have other central banks not been doing this? why does it take until now for a

central bank to come out and say -- we want a curve to look like this? west: it is not as flat as are seeing now in most developed markets. maybe we do not need to do it until it gets really bad. cutting interest rates, by assets, and then -- iasing riskier assets think as we get closer and closer to doing these new frontier monetary policies, that is when you go there. it might be strange to jumping in and controlling the yield curve after so many other attempts. anna: amazing how quickly we move on an unconventional policies weekly become classic. japanese shares trading a little weaker. what is your expectation around the japanese market and the invest ability around japanese equity? the bank of japan is a

top shareholder in many japanese companies. the scene we were looking at a year or so ago, when the weaker again with support the exporters in japan, that story has come and on. we are focusing on the governance so the cash sitting on the japanese company balance sheet. those are the stocks that have been performing quite well in the past few quarters and that is the name we are carrying forward. anna: will things get better for japanese banks? guest: if the yield curve is as deep as the banks need it and the bank of japan is successful in their goals, then yes, the large part of the market and perhaps move better and come out on a positive side. anna: thank you very much. j.p.l market strategist at morgan stays with us on the

program. up next, a warning from the ecb president and the chair, mario draghi. we will hear what he has to say about systemic risk and banks that need to review their business model. this is bloomberg. ♪

anna: the imperial palace. a live shot for you. the dollar-yen is at 100 .8. maybe the boj is not quite so pleased at what is happening in the japanese yield curve. let us get to the breaking news this morning. a new edition of daybreak is now available. let us have a look at some of the stories making this morning's eight edition. that cover story is a failed talks. u.s. secretary of state john kerry has abandoned efforts to salvage peace. it is pointless to move ahead

without a gesture from russia. and also europe's refugee crisis. meets indiana for a summit tomorrow two days after a boat carrying 500 migrants capsized in the mediterranean. and daybreak is also focusing in on the brexit conversation. martin shoulder has embarked on a tour of the u.k. residentean parliament meets with jeremy corbyn later today after talks with theresa may. rebounding global equities in asian trading. oil retreating. we have all of the details of what you need to know in the market. nejra: from our new screen set up here. seen his what we have stocks, bonds, commodities rallying and a weaker dollar. because central banks and the fed in particular seem to be the gift that keeps on giving.

we are seeing a little bit of a change in that trend. starting with asian stocks. i have the msc i asia-pacific index. up.re at about 0.2% japanese markets reopening. seeing a retreat in japanese stocks partly weighing on this index. if we move on and take a look at what is happening with the dollar. the bloomberg dollar index. we are seeing it weaken this , it is uping the drop so slightly today. up against most major peers. you did mention the yen earlier. we are seeing it weaken. trimming its weekly advance, this after officials signaled they may intervene to counter strengthening. goldman sachs has -- as well has retracted its long-held view that the yen will weaken. the bloomberg commodity index is here for september.

this is down. the first decline at the end of the chart in more than a week. we are seeing a weaker oil price. industry -- industrial metals are down after yesterday's biggest jump in two months. gold is also down. down, buting stocks with asian stocks, they are heading for their biggest weekly rally in two months. a little bit of a shift in the markets. though, bondst are gaining across most of asia and so yields are coming down. i have the bloomberg global developed sovereign index. i have tracked it through 2016 and it is heading for its biggest weekly gain in terms of prices since july. we did have bill gross saying earlier this week that the bear market in bonds has been delayed

this after the bank of japan and the fed policy decisions this week. anna: thank you. let us talk about europe. draghi says policymakers must act if they see systemic risks. speaking in his capacity as chair of the european systemic risk board, he warned that doing nothing could lead to greater problems. >> macro policy is still in its formative years. policymakers are understandably cautious about deploying novel instruments but when we see systemic risk, we should act. greater risk arises from in action. low interest rates tend to squeeze net interest margins owing to downward rigidity. but, over banking, is also a factor in the current low level

of profitability. analysis by the ecb suggests these fx tend to outweigh the impact of net interest income in the short term. but the picture very's depending on banks' business models. in the broader context of generalized overcapacity and technological innovation, some banks will need to review their business model to bolster profitability. anna: mario draghi. by the global market strategist of j.p. morgan. he talks about systemic risk and central banks need to act if they see systemic risk. do you see systemic risk at the moment? there is a healthy debate about how long the bond rally can continue. guest: there are areas of systemic risk. but the valuations of bonds right now are pretty high.

75% yielding below 1% in the global government bond based. that is high valuations. with that comes the risk of capital loss. we saw that in may of last year. but i think was important for mario draghi to assess is the risk in the economy. is soe the ecb which supportive pushing out money, offering credit, but making sure that there is still some credit standard and that we are not exacerbating the italian banking situation. those are the risks that should be focused on getting work at of the system that would help the general eurozone growth story. anna: are you impressed with the cspp and its ability to cheapen money for corporate? -- for corporate? s? guest: high-yield has come down.

buying assets and releasing government borrowing costs is a good way to start on a carry policy. have lower borrowing costs is serving them up on a platter. that only the banks of the secondary markets are trading bonds at a lower price. we have seen a amp up in certain types of corporate issuing. that is the first line of defense for the cspp. see a need for more fiscal spending in the eurozone? minister the prime criticized angela merkel and the policy he believed lies at her door around austerity in europe. says that things need to be looser in the eurozone. the you think so? and if so --do you think so? big thingt would be a

for europe. the other people or countries that have dropped the austerity issues. in general, government expenditure in the eurozone would help stimulate the infrastructure and the investment side of things. we have seen a lot of support of growth by consumption. we have seen government programs like the young core plan -- the junker plan. need an orchestrated effort among the eurozone economies to say this is the next step, we have to stimulate. and you might be thinking -- we have not got to ditch the austerity mode so quickly. anna: thank you. stay with us. us move to the u.k.

conversation. the foreign secretary boris johnson says he expects brits -- brexit talks to star early next year. the parameters moving forward would be set out at that point. we have details on this story. nejra: this was in an interview with sky news that it does tally with what bloomberg news reported boris johnson said to the italian foreign minister last week in florence in terms of the timing of that triggering of article 50. what is interesting is that the timeframe is the clearest yet given by a public figure from a member of the theresa may limitingt previously itself earlier to article 50 not being triggered before next year. asked about the latest timeline, it would notsaid happen until the end of 2016. she has defended the delay arguing that she needs time to

build up a team of advisors and form a negotiating stance. that is a position that angela merkel and other officials have backed. but there is a sign now that eu governments are increasingly wanting her to start these talk sooner rather than later because we had her meeting yesterday with martin schultz. he said prior to that meeting, that may should not wait too long. anna: the other big talking points is we are getting into conference season. the labour party conference was this weekend. they will be heading to liverpool. the big development could happen before the conference starts which is who will lead the party. jeremy corbyn has been pledging to reach out to lawmakers opposing him. nejra: and you had that great exclusive interview with jeremy corbyn a few days ago. you were saying earlier that martin scholz will be meeting jeremy corbyn today and basically voting ended on

wednesday in this leadership contest that we will get the results on saturday. the ballot was triggered by owen him afterchallenged jeremy corbyn refused to step down in the wake of mass resignations from his shadow cabinet and lost in a vote of confidence among labour mps. jeremy corbyn is strongly favored to win this leadership contest because of mass roots support in the labour party despite opposition he has held -- he has had elsewhere. and jeremy corbyn also said to you that we do reserve the right to oppose article 50. this is the key thing. how will this fit into the rice at negotiation, especially with an election in 2020? anna: setting the stage for us on what we will hear on the u.k. political front in the coming days. by monday, the leadership that a between a win smith and jeremy corbyn for leadership of the labour party will be over. i will be live at the labour

party conference in liverpool. and we are still with our guest from j.p. morgan. we have these comments from boris johnson suggesting the start of the year could be when we see article 50 triggered. and he talks about an article 50 letter being written. theresa may coming out and trying to distance herself from timing.ifics around the she does not want to give a running commentary. she does not want to show her hands in public. what is your basic assumption on when it will be triggered? guest: early 2017. in general, this uncertainty has been weighing on u.k. companies including small companies. we sell survey results yesterday showing a lot of pessimism among small u.k. business owners. perhaps if they hired someone, they would not be able to live in the u.k. you don't know if the exports

will be traded as freely as they were before. these are the things that companies in the u.k. are dealing with. anna: talking about u.k. stocks -- this is a good chart to show. the cheapening of u.k. stocks. they are trading at a low. you can see how the pound, things have changed since brexit. what is your attitude in terms of loading up on u.k. stocks at the moment? guest: it is the good way to go if you want to capture some of the pound depreciation. they are the minors, the health care, the pharma -- the stocks that can have cheaper at -- cheaper exports to the rest of the world or a translation affect when it comes back with a cheaper pound. 2-d valuect the pound when article 50 is invoked.

in general, overall european markets have been ok considering the brexit affect. they are playing on different factors and dynamics rather than brexit across the channel in the continental european area. anna: where do you expect to see the real signs of trouble for the u.k. economy? we have rdc and the commercial seenrty -- we have already the commercial property sector struggling. yesterday, we heard from the financial policy committee at the bank of england talking about their concerns regarding property and how they are manifesting themselves. guest: the story about the was a of various funds post brexit panic sentiment at a time when there was not a theresa may laying out a structured program for invoking article 50. in general, i want to see the

gdp growth pictures for post-june and that will come out in late october. that will tell me if investment has contracted as badly as had been predicted. parts of thef economy i will keep watching. until that gdp number comes out, we will not have the heart measure data for what brexit has done for the u.k. that was a concern at the bank of england heading into the boat. had talked about quite extensively, how much interest there would be in u.k. assets. it will take longer then what we thought to see the truth about brexit. guest: with article 50 still not being invoked -- what are the terms that theresa may will negotiate and what will the eu leaders give us in terms of .enefits or trade agreements

because that is unknown, there is no way to predict in this long probability band of growth or investment or earnings growth for companies, how much we will get unless we know the incremental information. it will be a developing story that lasts for a few years. anna: thank you very much. 6:45 a.m. here in london. between a flat rock and a hard place. orchids will fall 15 percent if governments do not get serious about fiscal action. that is up next. a purging of political rivals. it has been a busy year for ankara. we hear from the turkish president. problems mounting, german lawmakers are increasingly concerned about the fortunes of deutsche bank. is the lender running out of options? we discussed. this is bloomberg. ♪

anna: welcome back everybody. 1:49 a.m., very early friday morning if you are in new york. perhaps out from the thursday the night before. futures flat. softs have gone a little in the msci asia pacific. reporter: thanks. turkish president has told bloomberg's editor in chief that the country's central bank was yesterday andates should continue to do so. the comments came hours after the policymakers lower the interest rate for the seventh great month. steady, the cuts as a careful, and balanced cut.

because it is not right to make sudden moves up or down that could contain some violence and could create a tremor in the economy. but i believe it will be beneficial to continue this steadily. jeff who says the personal details of at least half a billion people were stolen in a 2014 hack. the company says the attacker was a state-sponsored actor and the stolen information may include names, phone numbers, dates of birth, and security questions and answers. users are being contacted and their accounts of -- and their accounts secured. -- the ceo of bulgari says brexit is bringing

more luxury purchasers to london. it has attracted towards -- tourist to the u.k.. as a global brand in london -- what we might have lost, we have more than regained officially from tourists in london. reporter: that is your bloomberg business flash. blackrock's larry fink has told bloomberg that markets could fall 15 percent if government do not take aggressive fiscal policy action. >> what i would like central bankers throughout the world to for that it is time

aggressive fiscal policy. we cannot do it alone. anna: former federal reserve chairman alan greenspan added to that bearish tone suggesting the bond market rally is untenable. this came after the 10-year note yields in the u.s. fell to its lowest level in two weeks. greenspan called it the classic case of a peak after a bull run. >> it looks like it will never turn. just below the peak of stock bids in excess of offers. when you get to the top, the marketsappear and the go down fairly sharply. i think that -- this is a peak incase of a speculative security. anna: greenspan there.

is still with us in studio. greenspan saying the rally in u.s. treasuries is unsustainable. not the first voice saying that. how sustainable do they look to you? guest: it depends on the rest of the global bond market. when you have such low yield, you do have the temptation of investors to move into what is traditionally not a higher-yielding assets of the u.s. treasury market is higher-yielding then it's peers around the world. peers around the world. when december comes and our expected -- expectation is for a yield rise there. anna: larry fink talking about more fiscal spending with the election looming does the path look fiscally stimulating to you? guest: they do have some infrastructure spending in the

works. the affect of any of these maindates or the two candidates getting into the presidency and putting forward infrastructure spending is equal or negligible in terms of the difference for us at the moment. we will have to see what happens in november for a clear answer on general policy as well. next next week we get the stage in the campaign with the debates. let us talk about the u.s. labor market. we thought a lot of the hard work had been done in the u.s. labor market in the sense that the unemployment rate had come down so far. it seemed the inflation was the missing part. but janet yellen talked about participation. explain to us why this is so important. an uptick in the participation rate broadly speaking. guest: the labor participation

rate increasing is a good sign in general. as a broad economic theorist, you want people to come into the market. the job market would look good. and increase was good in that sense. it is not good when you calculate the unemployment rate because that will never go much lower if you have more people coming into the labor force. are we looking for the big increase we saw in the last year to continue? probably not. a lot of workers have already joint. a general population labor participation rate. we are still well below the crisis level. 25-50 years old. perhaps we might see a little more participation coming forward. i would not expect an employment rate much lower

than 4.7. anna: i saw them near a four decade low. thank you for joining us. up next, more on turkey. president when we come back. ♪

anna: turkey's president or to erdogan said his country did the right thing by cutting rates and should continue to do so. the turkish leader also accused the u.s. of failing to live up to its obligations, saying it's backing kurdish fighters it considers terrorists. and data dump on the dark web. yahoo! says the personal details of at least half of the people -- half a billion people were dumped. welcome back to "countdown."

it's 7:00 in the morning here in london. we've seen the asian market session looking a little different today compared to the rest of the week. let's have a look at what the futures have in store for us here in europe. what do they suggest about the european trading day? we'll pick up on weakness in the asian session and the weaker in europe, down by around .2%, around .1% on the ftse, a little more on the cac. week where stocks and bonds and commodities rallied, the dollar weakened, and markets reevaluated how loose monetary policy from central banks was going to be, how long it was going to be loose for. putre we assess that, let's up the risk radar and show you where we are overnight. things are looking different in the overnight. a bit of a pause for thought in that move. .1%,asia-pacific down by

dollar index fairly flat. we had a move in the yen, which we have seen in recent days, down by around .2% this morning. we heard from goldman sachs, staying with their weak yen bets despite the fact that this looks like it will be the third week of increases for the japanese currency, gaining more than 1% so far this week. nymex crude, that will be a focus of our early next week conversation, down by just over 1% this hour. saturdays and arabians -- saudis and iranias met again ahead of the meeting in algiers. bond+++

talking slightly different timescales. 1.62% is the yield on the u.s. 10 year right now. over in germany, -0.1%. -0.05 in japan. let's get the bloomberg first word news with christine hardy. christine: thank you. yahoo! says the personal details of at least half a billion people were stolen in the 2014 hack. the company says the attacker was "a state-sponsored actor," and the stolen information may include names, phone numbers, dates of birth, passwords, and security questions and answers. users are being contacted in their accounts secured. the revelation comes ahead of verizon's plan for point a billion-dollar acquisition. talks to acquire an exchange operator, according to people familiar with the matter. they say an agreement could be announced within weeks, though

no final decision has been made and the talks could still fall apart. this comes five months after they went public in a long-awaited ipo. its shares surged more than 24% in after-hours trade. finances are raising concerns among german politicians with low profitability and mounting legal costs. social democrats discussed the was at a club session. the woes at a closed session. european central bank president mario draghi says that central banks need to act when they seize a stomach risk. speaking at the esrb conference in frankfurt, the woes at a clo. he also said policymakers must remain vigilant. ismacro prudential policy still in its formative years, and policymakers are understandably cautious about deploying other instruments. but when we see systemic risk we

should act. greater risk arises from an inaction. protesters have taken to the streets of charlotte, north carolina for a third night, although this latest protest has been largely peaceful. that is as police refused to release video that could settle wildly different accounts of the fatal shooting of a black man earlier this week. officials say that releasing dash cam and body camera pictures could in peavy official investigation into his death. -- could impede the official investigation into his death. an official has been charged with the fatal shooting of an unarmed black man in tulsa. he's charged with first-degree manslaughter in the death, who was standing by his broken down car. shelby claims she didn't obey her commands and when she fired, he reached into the car.

the police footage shows him walking away with his hands in the air. global news, 24 hours a day, powered by over 2600 journalists and analysts in more than 120 countries. you can find more stories on the bloomberg at top go. i'm christine hardy. this is bloomberg. carolineanna: thanks. let's get to breaking news. a sporting-goods retailer in the ashley, theree have been developments. sports direct saying that the ceo has resigned. the board appointed mike ashley as the ceo, who resigned and agreed to facilitate a smooth handover of his responsibilities, according to the company. this is the latest in a long saga for this business. faced tensions with shareholders over a long 's majority it

owned by mike ashley and there was tension after they faced a raft of criticism about its working practices. it seems as if there might, after years of tension, be a review. they have hired an independent party to conduct a review, and theyndependent review -- have set that task to be completed to bring shareholders and the company further together. the latest news is the resignation of the ceo. let's check in on the market action in asia. juliette saly is standing by. juliette: anna, we're routing of the week paring back that weekly gain, the best we have seen an asian equities for about two months, thanks to the boj earlier this week and said. that we have seen a little bit of selling in the japanese market today, which closed lower by .3%, resuming trade after the

public holiday on thirst they and retreating -- on thursday and retreating following the boj decision on wednesday. t, have also seen a weaker ye goldman sachs still very bearish on the yen, and there is speculation that we could see more intervention in the currency. the cost is closing by .1%, some upside there and in taiwan, and australia the over former, closing higher by on1%. elsewhere you are seeing selling coming through, mainly due to weakness by consumer and banking stocks. the banking index on the nikkei is down by about 1.5% during today's trade. in china, we have seen some weakness in the major indices, down by .1%. worth noting, the eight share index in hong kong is on track

for a weekly gain, and we have seen a little bit of upside coming through from the health care players. in terms of currencies, a bit of weakness and asian currencies today. the yen down by .1% against the dollar, so it is a story about dollar strength, and weakness coming through in the aussie dollar. we're hearing from amp that the aussie is still considering a rally halt, 76.4 to round out the week. anna: thank you, julia sally in hong kong. let's turn to our top story. the turkish president says the country's's central bank was right to cut rates yesterday, and should continue to do so. policymakers lowered their overnight lending rate for seven straight months to extend its longest easing cycle in nearly six years. erdogan tol john nichols -- >> i see the central-bank cuts

as a steady, careful, and balance cut. because it is not right to make some moves up or down that could contain some violence, that could create a tremor in the economy. but i believe it will be beneficial to continue this steadily. coup brought renewed pressure just for economic growth in turkey. with the lira down 65% since 2013, erdogan talked about his hopes for the direction of the currency. >> [speaking turkish] >> there hasn't been the kind of explosion that some people were expecting, even after the coup. it should behat lowered. it's not at the level desired.

those who were expecting it to crash, they didn't get the result they wanted. if we preserve the stability, and if the turkish currency gets a little more valuable, i in the in turkey growth economy -- let me elaborate. within the first six months, the growth rate in turkey is quite satisfactory, 3.8%. the is much better than primary economies of the european union. turkey has grown pretty much 20 nine quarters. we have never experienced negative growth for the past 20 nin9 quarters. there's stability and confidence in the market, to which we have attached great significance . we have protective stability.

we abide by the rule of fiscal discipline. that is why investors are getting scared, and although we are not always at the desired level, we are still strong. 2.8% on an annual basis. anna: he also blasted the u.s. for orchestrating july's failed coup. >> and we say, since there are other countries in the coalition, let's get together. the --ring down have no doubt, together we can do it. but if you get up and distinguish amongst terrorists, you are harming turkey. we're disturbed by this terrorist group. they constitute a threat to our country, and by giving them

weapons, you are strengthening this threat to our future. anna: stay with bloomberg. we will bring you more from that interview throughout the day. let's broaden the conversation and look at things through the investment lens. that dolores, senior investment -- daniel morris joins us in london. great to see you. we have the central bank in turkey, the president suggesting that could go further. theyi spoke to jpmorgan, weresecon -- they suggesting that you treat the countries that will benefit from stability differently from the likes of turkey and places where you see a big consumer investment case story, a rising middle class. how do you dissect the em world? >> probably along similar lines how we need to think differently

-- the story in the past has manufacturing things in china and shipping them to europe. that seems to be a story of the past. focuses on i think, bigger economies that have strong domestic demand. it's the middle class, their services, consumer sectors, something that will be driving emerging markets as opposed to the trade story. about pullingeard back expectations around how many hikes he will be able to fit in. we have seen renewed appetite for emerging-market assets. this is a jumpstart for the biggest emerging markets stock, being highlighted. how much appetite do you have for em? >> well, it's getting more attractive. we are certainly not in a pound the table moment, but what we

have been thinking about with central banks is at what point will we see less support from quantitative easing, and what will that do to equity markets? a week ago we suggested that when it happens it could be severe. so you will have a slightly longer-term horizon. and i think that is really where the strengths come through, where you see higher gdp growth, where the potential for margins to rise. and it really comes out in favor of her emerging markets -- of emerging markets. anna: where do you see the big risk on investment horizon? i was reading a colleague in asia -- he was talking about how policymakers, central bankers, he is saying that the longer the rally lasts, the more aggressive could be the switch back, when finally that punch bowl is removed. the damage to the economy could be all the greater, if more and

more people are piled into it. is that something you fear? greenspan has been talking about the unsustainability of it all. >> it's a question of how far over the horizon. that's part of the dynamic you have had over the last couple weeks, when you first had the bank of japan not act, think about it. the soft came back up, is this a point we start tapering? in the end, we didn't get a taper. we got some tweaks, but it does suggest that it's ok for now. but you are right, we need to think about what's going to happen when they finally do stop. they have to at least taper, and you want to be in assets that will appreciate after that point that are just inflated because of liquidity provided by central banks. anna: daniel morris from bnp paribas. next, concerns among german politicians about deutsche bank. this is bloomberg. you our:30, we bring weekly show, "brexit: what

next?" today, we stick to the billionaire steven lansdown, founder of bristol sport and key brexit supporter. this is bloomberg. ♪

anna: welcome back. this is what loo london looks like. dollar against the pound, a little bit of movement. let's get the bloomberg business flash with christine hardy. christine: thanks. the turkish president has told bloomberg' editor in chiefs that the country's's central bank was right to cut rates again yesterday, and that it should continue to do so. the commons came hours after policymakers lowered turkey's overnight lending rates for a seventh straight month. >> i see the central bank cuts

as a steady, careful, and balanced cut. because it is not ready to make some moves up or down that could create some violence, that could create a tremor in the economy. i'd like it to be beneficial and continue steadily. christine: the billionaire founder and majority shareholder of sports direct has taken over as chief executive. the news comes after it the ceo resigned yesterday. the company has come under heavy criticism for the way it treats its workers, and questions were raised over their corporate governance. yahoo! says the personal details of at least half of ilion people were stolen -- half a billion people were stolen. the attacker was "a state-sponsored actor," and that

the information could include names, phone numbers, dates of birth, passwords, and security answers to questions. users are being contacted and their accounts are being secured. the revelation comes ahead of verizon's planned $4.8 billion acquisition of yahoos web assets. anna: thank you. christine hardy in hong kong. let's talk about the banking sector. deutsche bank's finances weakened, and mounting legal costs are causing concerns about german politicians. this was raised during a closed session, according to people who do not want to be identified. let's get more without berlin bureau chief, who joins us now. great to have you. how did this discussion of deutsche bank play out? >> hi, anna, good morning. i think what we're seeing is that lawmakers are starting to put this on their agenda. they follow the news closely, like we all do, and they see the

out information coming regarding deutsche bank, and they want to be prepared for what might come in the future. this particular meeting was a meeting of social democratic lawmakers and junior coalition partners in chancellor angela merkel's government, who are part of the bundestag finance committee, and they basically had a discussion about the potential fine of $14 billion, and they came to the conclusion that they don't think the fine will be that much. they also talked about deutsche bank's finances, and should they have to pay that huge fine. what they didn't do was go into any details beyond that, and discussion of what they would have to do. it was putting in on their radar screen. your situation at deutsche bank, how we know it, and a discussion around what that might mean. anna: and what is angela merkel's government saying about this? >> well, her government is being

very tightlipped. they obviously don't want to do anything that could cause further problems for deutsche bank. wolfgang schaeuble told in february, he gave us a short answer -- "everything is fine, i don't have anything more to say about it." schaeuble in february, he gave spoke at the same finance committee with the the entirecrats, and bundestag got together this week in the entire bundestag got together this week in a closed session, and he addressed them for an hour and a half and they didn't talk about deutsche bank. anna: daniel, thank you very much. the numerous, senior investor -- daniel loris, still with us. spoke at the same financelooking at the banking ss a whole, one thing that unites them all is this flatter yield curve, the low yield environment. that takes us to the boj, and

what they are trying to do. i've got the spread. low, not withk the boj wanted to achieve. objectivesat are the are they changing and can they achieve them? yes, the yield curve has gone down. so first question, is the purpose of the qqe policy to support the financial system, the economy as a whole? that's clearly one of the key questions. secondarily, raising the inflation targets without telling us how they will achieve it. the results from the bank of japan, even though the markets took it fairly well, wasn't entirely satisfactory. anna: we should find out more next week about how they plan to control the curve. right now, we don't know for what purpose, what shape. >> exactly.

we don't know how they are going to deal with the situation at the longer end of the curve, if two-year yields were to fall. how would they react? with maybe trying to raise interest rates? that seems to be the opposite of what they were going to do. it also seems they are becoming ever more constrained in achieving their objectives with the tools they have. anna: much of the rally we have seen equity markets in japan since then has been around the banking sector, for understandable reasons. what do you see in japanese equities? >> i think the key issue, as it has been for the last several years, is the end. -- is began. the yen. after the policy announcement, the yen strengthened slightly, so we aren't seeing the weakness you would think they would want in terms of growth of the equity market and in terms of inflation. anna: thank you so much for spending time with us. daniel morris, bnp paribas.

that's it for "countdown." we have been to the boj and the fed. next week we turn our attention to the oil markets. friday looks like it could get off to a sluggish start. "on the move" is next. this is bloomberg. ♪

welcome to "on the move." 7:30 in london. we're counting it down to the european open. i'm guy johnson, alongside caroline hyde in berlin. this is what we are watching. german politicians are waking up to concerns about the country's biggest bank. it has lost nearly half its value this year, but will berlin take action? keep on cutting. the turkish president says that turkey's central bank should continue to drive the rates