>> your outfit says it all. >> do you think it matters if you look like the part >> no. no. >> oh, my god. we're done. >> thank you. >> have a good weekend >> yeah. thank you. >> thank you for the opportunity to sit here with today. >> i have to get home by 2:00 to watch this i hope rickie wins make sure you join us on monday. squawk on the vei"squawk on thet good friday morning. welcome to "squawk on the street." jim and david are off this morning. stocks are set to lose their gains for the week possibly the month on the dow as contagion fears bubble up around the turkish lira germany is down nearly 2% as the ecb is reportedly concerned about loan exposure. cpi matches expectations but

year on year now a cycle high going back to september of '08 road map begins with turkey and tariffs. the lira plunging. the president tweeting his fears about the country rattle investors. the market reaction. futures are lower in the free market and tesla the board appearing to get more serious about musk's go-private plan more on the story of the week coming up. global markets under pressure this morning as the turkish lira tumbles to record lows against the dollar on worries about turkey's financial health and the diplomatic riff with the u.s moments ago, as you heard michelle say, the president tweets a lot of discussion this morning about how serious this is.

whether there is a story to fill the summer friday or whether there's actual serious contagion. >> there's a huge story for the turkish people the president smeels weakness so he's going to attack them even more when he has the opportunity for it whether or not there's more contagion here, hard to say. we have been seeing this evolution in turkey on the part of erdogan his unwillingness to let the central bank do what it needs to do at a moment like this simply, interest rates in the united states are higher than they were a year ago and when you can get 3% on a 10 year in the united states as an investor, you demand more from other unstable places in the world. and so you will take your money out of a place like turkey if you wanted to keep that money in the country and he needs to, because he has a current account deficit, you have to let interest rates rise. he doesn't want to do that you had a run on the currency.

it's been dramatic the statement he made this morning, which set the markets to a low, which was when he said -- can we bring up the full screen they have their dollars. don't forget this. if they have got their dollars, we have got our people, our rights, our allah. he didn't seem to suggest he was really willing to actually do all the things that need to be done now now, his son-in-law, as i understand, has just taken the stage. he's going to say some of the correct things like we need a stronger monetary policy these would be good things i don't know, though, if this is enough to turn around the currency, especially in the wake of president trump's tweet they need a policy shock of huge proportions. will they let the central bank do what they need to do? >> what's the transmission mechanism, if any, out of turkey to the rest of the global

markets. >> yeah. >> we don't know how active that is now the emerging market currency index is down. so that is the way you would see it impact our markets. if it was a global financial tightening that came through the dollar. >> right and people are pointing out 1% of all global outstanding loan exposure right. the stock markets is $150 billion. this is not a new story. currency has been falling for a decade how many how much of this is a surprise >> right i think that's all the good points that's why i adopt thi-- don't v as bigger reaction in the united states what do you see happening in turkey what happens physically with the distribution of money and loans, et. cetera there are some banks in europe that have heavy exposure there what have they done in order to protect themselves

could there be a failure if the stock prices don't act like a failure they act like a hit to earnings. >> absolutely. if you look back to 1998 and 1997 you have the emerging markets global driven financial crisis there was a tremendous amount of capital stacked up in grabbing for yield in parts of the world and not having the liquidity once things turned it's not clear that's going to happen five and a half years ago, we got a crisis in cypress that briefly consumed our markets. >> i was there. >> we were in a different spot. >> right. >> you don't have to tell her about cypress! >> we had ptsd is very active at that point. >> what was crucial about cypress, they were going to redesign the whole process how a european bank would be allowed to fail. right. that was the drama there it was wider than cypress. we have to ask now, are we at the point where they may have to test that process they put in

place with cypress for any banks? i don't see it now. >> but the difference here, we've got higher u.s. rates. starting to get qt quantitative tightening. >> yep. >> when things like that are happening. that's when accidents are prone to happen. >> potentially, yeah i also feel as if just where we were field position wise in the u.s. markets, just kind of churning here right below the highs. we're up 6% in the s&p in six weeks. would it be a logical place on an august friday to have back off off? no does it spill into anything beyond that? i don't know we're talking about dramatic affect yet on regional growth rates but you never know. you don't know if it's going to eventually become that kind of a story. >> as for the president's response today and the doubling of the tariffs 50% on steel 20% on aluminium we'll get more from kayla who is

watching that tweet that came out a few moments ago. kayla, good morning. >> reporter: good morning. it's the latest in the back and forth on trade on the two countries. remember in late march the tariffs went into affect originally on turkey in addition to a whole host of other countries. in the meantime, turkey decided to retaliate against cross section of u.s. goods representing call it 15% of what the u.s. sends to turkey each year the u.s. trade representative was studying turkey's market access to the united states. that was something that was also being looked at very closely by investors. what the trading relationship between the u.s. and turkey would ultimately be and what that meant for turkey's economy. however, small it may be there were talks in washington this week at the state department between turkey and the u.s. they resolved nothing. they were on trade they were also on the detention of the seven american citizens, including the evangelical pastor, andrew brunson, which the president is following

closely. interestingly, where the president tweets this new policy we don't have a press release from the department of commerce which is running this investigation and running this policy and we would expect that would be formalized in that channel. and it also appears to be a somewhat arbitrarily arrived at number we know the president likes big round numbers on trade there needs to be a lot of evidence behind the decision to make policies like this. otherwise it would appear ripe for a challenge at the world trade organization so we'll see what the end game is for that policy and what eventually happens and what commerce eventually says about how it has arrived a the official decision, if that is what we get today, to double those tariffs. >> we'll watch erdogan, obviously, has been to washington under the president's term it's not clear exactly, kayla, whether it's about the sanctions related to the u.s. pastor is that the end game, or is

there something else he's seeking? >> that's one of the outcomes that the president is looking at but there is also this trade backdrop here. and we know he likes to use the tariffs as leverage. he likes to exact pain on economies where he feels he can to get an outcome that is desirable for him and his administration so it seems to be that on one hand, this could be about trade but this could be using trade as leverage for many other policies or outcomes that he wants to see take shape here. >> kayla, there are a bunch of turkish officials in washington, it was yesterday or wednesday, obviously, that came to nothing, huh? >> it came to nothing. it was one of the reasons, michelle, why you not only saw the market slip but the turkish currency slip. because there was this expectations that maybe in this hour long meeting between the turkish delegation and the deputy secretary of state that there would be some sort of truce that would have been

reached. some sort of agreement and there wasn't so this deterioration between the u.s. and turkey is something that people don't quite understand exactly what to make of it. what the result is especially with the u.s. being a fairly large trading partner of turkey's. >> yep. >> the other big concern, guys, when you talk about the europeans is they've got a deal with turkey to reduce the inflow of migration right. there was a whole thing they did financial arrangement and if that falls apart, there's going to be another issue that the eu is going to be dealing with. >> yeah. we should point out, too, 80 million people it's not a small country seventh largest eurozone economy, i'm pretty sure, four times of greece in terms of size. >> member of nato. >> yeah. >> thank you, kayla. when we return, tesla's board is in the spotlight as elon musk considers taking the company private. we'll get one analyst perspective on the situation, and his reading on the stock we'll take a look at u.s. futures at this hour it's suggesting right now we'll

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tesla's board will meet with financial advisors next week to discuss elon musk's proposal to keep the company private the board is likely to ask musk to recuse himself from that process. it's getting interesting in the last five days what do you make of the price action yesterday to begin with that it's fallen below the point which he made the tweet. but post saudi headline. >> clearly i think the market is skeptical. whether the deal can happen. you know, in our view, if we borrow a line from jerry macguire, show us the money. we need to see how they're going to secure the financing, what are the details? and the details have been left out. if you look at what happened with dell, it took them six months to arrange a detailed financial planning before they announced that a deal had been done it seems like tesla is going in the opposite direction they announced it prematurely,

perhaps, and then are trying to figure out the financing they might be able to secure the financing but it's uncertain. >> is it a legtd mate complaint there's been no 8k >> yes i think it's legitimate. you know, given the problems the stock has had in the past. the fact that he needs to have the share price above 360, because his convert is due in march of 2019. the strike price is 359. if the stock price is not above 359 he owes $920 million in cash that's important, as well. >> do you buy the theory he's trying to incentivize people to take equity? >> i think it's the very bizarre way of handling things to tweet out saying we're going to consider taking the company private and say funding is secured without providing any detail that, to me, strikes me there's been some discussions in the past written documents where there's funding in place.

>> these reports that cnbc has that the board has told him you're going to recuse yourself from these discussions by the way, hire yourself a lawyer is he at risk in his position here as ceo of tesla if he is, would the stock go up or down? >> i'm not a legal expert. i have no idea whether he's at legal risk obviously, the -- >> is he -- i don't mean legal risk is he at risk at being the ceo of tesla anymore because of this is that a good or bad for the stock? >> that would be a stretch given his connection with the company and the stock and the roips with board of directors who have supported him in many ways his acquisition of solarcity i'm not 100% sure whether, you know, they would push him out or not. he clearly does not want to run a public traded company. he has, you know, antagonistic relationship with the analysts and investors which hasn't

served him well. the analysts are-- it's importa to communicate clearly to the analyst so they can communicate to the investors he doesn't want to do that i can understand that is a volatile industry. >> he was sure happy to take the capital. >> absolutely. >> yeah. >> you say now, okay, show me the money. what is interesting about this situation, we don't know how much money we need to be shown there's various different structures they're talking about. rolling the existing investors you might have to buy them out you mentioned dell well, dell had on the corporate balance sheet net cash it was a cheap stock you knew how much you needed to raise. it that wasn't much of a stretch to finance you have to write checks after you buy the company to fund the business. >> yeah. and i agree 100% they can -- we estimate they can raise probably $24 to 54 billion assuming that three simple scenarios. one, 0% of the existing shareholders convert to private

and he has to finance 80% because he owes 20%. the second scenario is that the top ten mutual holders convert 50% of their shares or 100%. the range is to $24 to $45 billion. either way, whoever takes over is facing a huge capital structure issue. they have $9.1 billion of long-term debt that debt increased $2.4 billion for the previous year. they have current liabilities of 9.1. current assets of 6.7. there's a deficit of $2.4 billion on the current side they're burning through cash they have a huge capital structure issue. this is why we've been caution on the stock. >> how long have you had the sell >> i just downgraded it about two weeks ago. i was on the sidelines with the hold and we recently got negative. >> so even when that earnings came out and actually pushed the stock sharply higher, that didn't convince you? >> no. because we think one was a short

squeeze. secondly, he was conciliatory toward the analysts. that was a positive. but the stock was up because of his commentary about gross markets improving the third and fourth quarter we're skeptical of gross margins going into 2019. we think he's selling a lot of high-end vehicles. $65,000 price tag. the gross margins are pretty high we don't know if they can make margins on the $35,000 model, we think is a large percentage of the 420,000 reservations that have driven the stock higher that's a concern we have until we get clarity there's head winds with the credit expiring. >> right. >> one day we'll get back to production targets as opposed to equity price targets >> right. >> thank you. >> thank you when we return, sometimes beating the street isn't enough. just ask drop box. down sharply despite better than expected results what the ceo told cnbc next. and a look at the futures this hour.

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announced that coo dennis woodside is stepping down. woodside will not have a direct replacement. some of the customer responsibilities will taken over by the current vp of business strategy and operations. he credited woodside for helping transition to a public company. >> it creates opportunity for a couple of our leaders. we'll miss dennis but he's leaving the company in great shape. >> we also asked howston about competition in the cloud space and whether it will compress margins in the future. >> we pay attention to the growth and we deliver strong free cash flow the business is healthy. we've been in a bit of a competitive environment. but we're doing really well. >> drop box has been turning its focus on the surprise space which is dominated by big players like google and

microsoft. he talked about going head to head with those companies. >> we work with all the different eco systems. we partner with google and microsoft. more and more we find our customers are tieing together tools from the different eco systems and we do the best job at that. >> he said the company is focussed on people using drop box at work and said 80% of customers use drop box professionally by the way, guys, we should mention that heading into the earnings release, the shares were up, actually, as much as 10%. back to you, carl. >> thank you very much one of the big stories today take a look at the premarket looks like we're falling on this friday morning potentially losing our gains for the week, which would mean an end to a pretty nice run of not a sixth consecutive weekly gain. opening bell a few moments away.

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opening in the world what a friday morning between the turkish lira and cpi, which we didn't get to year on year is the hottest in almost a decade. september '08. going to raise questions for the fed as we watched wholesale inflation rather tame yesterday. >> i think it might be maybe at first intuitive to say maybe the market is selling off because it's worried about contagion risk about currencies, et. cetera if you have to ask how aggressive is it going to be in line with cpi, it could be a bigger situation for the markets. if you can believe interest rates are the primary driver by the way, it would make the turkey situation even worse. >> it could. we would indicate it would go lower before the cpi number came out. it seems like it was pretty much on target. you're getting to the point where the core is above the fed's target you know, the question is how comfortable are they letting it ride that way and staying relatively gradual i think the whole questions are being pushed out for the first

half of 2019 it seems like september and most likely december will be hikes and then reevaluate after that. >> interesting how steve liesman reported yesterday that the betting and positioning changed since jay powell said he's going to do a conference a news conference at every single meeting because the old rule was you did not expect them to do anything when they weren't going to have a news conference. now they have a news conference for every single meet, with every single is hot. >> live, as they say more discussion about two things one, the spurt in growth over value. last few sessions. up until today, obviously. and the journal looks at evaluations trending at the lowest levels of the year the last few weeks and what it means. >> right you've had earnings come up to meet stock prices. stock prices flat lined since almost january we're about back to the five-year average for the s&p 500. it's not as if we got really

cheap. it's just that there's great earnings out of taking care of an overvalueation. [ opening bell ] >> i find it interesting because the s&p 3,000 might be a bold number it's like 5% it's been stuck for awhile. >> there's the opening bell. some weak red on the left side of your screen at the big board it's the intrepid celebrating the 75th anniversary of the commissions of the "intrepid. we're going try to keep our eye on some of these european banks.

unicredit, losses in the mid 5% range. >> they have significant operations in turkey so the degree you're worried about turkey, you're going to be worried about whether or not the banks will take a hit to their earnings i don't see that those banks are trading away what should be fundamentally worried about something systemic but, obviously, if they're going to take a loss in a big country like that, you know, it's going to hurt your bottom line. >> there's a european financials etf that trades actively it's down at the open around 3%. people are definitely taking some off of these in terms of earnings expectations. you know how it goes, right. the conversation will immediately turn toward what does it mean for the ecb and now they have to potentially plug another hole is it going to change the idea they're going to gradually move off their easing pattern >> yeah. >> if you're going to europe, though, $1.14 and change looks better than it has for awhile. >> i've got one even better.

russia russia is so cheap now and getting cheaper today. >> you just went. >> i just went five people go out to dinner, three courses $220 it's crazy how cheap russia is and we haven't talked about it much today it's been overshadowed by turkey, but they're having another, you know, run on their currency, as well. because of the sanctions that have been imposed. a new round of them in the last couple of days. >> interesting round of downgrades on this friday. i've been trying to keep a list. deutsche at morgan stanley, tiffany at openen heimer, and intel. that's a second big cut for intel. it talks about some their struggles with their process. >> intel opening down 2.3% semiconductors did kind of give up the leadership role a few months ago even though the big tech stocks did. i think semiconductor equipment

has been worse i think slowly the market is having this idea the cycle is peaked in terms of returns on capital and the rest of it and what that means for the broader market is it clear? you have kind of had a lot of these groups surrender a little bit of leadership. so that's where i would place it right now. >> and if the whole sectors seems to suffer a little bit of loss a premium take out. >> right. >> and it gums up the whole supply chain. >> and that's sort of interesting and runs through the downgrade of tiffany, which is essentially about how the yaun tracks tiffany's same-store sales. we know where it makes sense. >> some of the powerful consumers are in china. >> makes sense you saw many luxury brands suffer when there was a crackdown on corruption. the price of watches were falling. so it would make sense that tiffany will have exposure like that to what is going on in the

chinese yaun. >> tiffany had a tremendous run of stock i think it's, you know, up 50% or something. >> you can see that. >> yeah. a little bit of a profit taking. >> yeah. we'll watch nike today class-action lawsuit brought by some women at the company who said they have discriminated against, i think, females. we talked about them in the last hour this has been an underlying issue for the company regarding management turn over and degree to which even some of their mea culpas acknowledged. >> we need sara here today she reported on whether or not their culture was not fair to women. it would suggest those women feel it was the case in they came without any specific event or study and said

this is our problem and now we're going to solve it. it was more -- i'm trying to say proactive. then they raised compensation across the organization. it seems fz the broader reevaluation under a relatively new ceo of corporate practices and this seems to be, i guess, part of whatever the longer term story is there. >> another stock, though, with a great run. >> 167 points on the dow worse since july 11th. it gives you and sufficie sensed we've had it. >> it's been tick to beicking higher and it told you why the volatility cut down 10 yesterday and now up to 12. 5. >> almost got to a nine yesterday. >> yeah. do you think it's a function of

being close to record highs. it's been an orderly march in the last few weeks to the highs. also, we keep talking about how the market is not that broad there's a lot of stocks down for all those that are up. that's the exact kind of activity that just sort of suppresses the index level volatility and smothers the limit. >> when you look at what is bringing the dow down today, it's like a hodgepodge there's no story to it, from what i can tell. you know, is there a story there? >> you can see the global ones but they're all global, pretty much. >> yeah. walmart is up. >> yeah. it's a little bit of a defensive cash to the dow now when you have walmart and the pharma stocks. >> yeah. tesla is lower we talked about it, obviously.

we have confirmed this tweet from david is legitimate he's not verified by twitter i want to thank elon musk for the shorts he's a man of his word they did come with -- manufacturing defects. >> look at the photos. look at your screen, if you're not looking at the screen! >> if you missed the joke, elon said he would send david a pair of short shorts after david said he would not review, i think, his tesla lease, i recall. >> yes. >> david had been short of tesla at times so it was, obviously, i'm going to cancel my lease because, you know, i'm not happy with the car. i'm sort of seen as a little bit of sour grapes by elon musk. >> yeah. what am i supposed to see? they did come with manufacturing defects. i can't tell what they are it's a joke. >> it's a play on -- >> oh, sorry [ laughter ] >> and the fact that tesla quality control might not be.

>> yesterday people tried to argue that the price below the level of his tweet at 3.858 is a sign he has little credibility. >> it's too soon to tell but clearly the market is not going to kind of move in advance of any process that the board is undertaken here. it looks like the board is building a process around this premature tweet about the effort to take the company private. not surprising that the stock is down it seems like the longer you go without a filing, without anything substantiative about potential financing. the more you're able to say maybe it's not that much behind it on the other hand, the stock can go wherever it wants it trade the at 390 a year ago. >> 2.90. >> exactly my point is, it doesn't need the deal to jerk up and down. >> yeah. if the market had believed him, it would have gone closer to 4.20 immediately.

>> if you had a true agreement if you had everybody buying it. >> yeah. >> not just by him saying my intention to take the company private. >> that's my point if they believed him, it would be up. >> right it was -- we sat down with steve bannon and when he talked about turkey today, erdogan, the leader of turkey, came up in my discussion with steve bannon. >> he gravitates to personalities that are strong personalities. he likes president xi, he likes erdogan, i think is the most dangerous guy in the world. >> i followed up asking him doesn't it bother you he likes people like erdogan. and steve bannon said no what i think is interesting bannon said he's attracted to people like erdogan and yet today what does the president do he wants erdogan to do something. he wants him to release the seven americans, including the pastor, so he lays it on with

even more tariffs with his tweet. so even if he's attracted to personalities like erdogan, he is not unwilling to use as much economic power as he can muster to try to get him to bow to his wishes as we saw the tweet from the president earlier today. >> did you see anything constructive in erdogan's comments today sort of don't get high on your ambitions. you won't be able to make this nation kneel >> from him? no so you to put your hope in the son-in-law finance minister who said the right things. we should be watching, i mean, if the central bank is going to act, it could happen any second. think to argentina a couple of months ago bam. 12% in single day. right. they had an emergency meeting. they've had emergency meetings before in turkey i flew to turkey once. they did the emergency meeting at midnight in turkey. 5:00 p.m. eastern time because they knew they had trouble then. that was four or five years ago. they could do it again but is he going to allow them to

>> i think the move today versus the dlarp -- dollar ranks in the top ten going back to 90 >> it's extreme. to michelle's point, if you had any hint of some kind of counter effort or policy response you're not sure that currency is going to continue. >> right i would say if you are trading the lira, you would be very careful right now because if they did do a policy shot and pull out the shorts you had. dow is down 190. seema mody is on the floor >> reporter: the global story the focus on the trading floor turkey being at the center that's weighing on stocks this morning. as the s&p 500 was inching closer to the all time high of 28.72. hit back in january. a quick check, though on the sectors. defensive names are higher like telecom. there was a talk about the

evaluation but energy has been putting a damper on that move. take a look at global stocks weakness in european markets with less than two hour goes in that trading session with the german dax leading the declines. the euro is trading at 13-month lows against the dollar. the ecb has been concerned over european sector lenders to turkey before bbba could be particularly impacted by the depreciation of the lira as it continues to plummet take a look at the yield, as well, in the turkish 10 year note spiking above 10%. and for what it's worth, tur, the turkey etf thinly trading but worth noting down double digits today broader concerns about debt sustainn't sustainn't -- sustainability such as brazil has put it under

pressure it hasn't been just a story for today. we have an ipo at the new york stock exchange a regional u.s. air carrier that provides contract-based flying for united and american airlines priced a downside ipo below the expected range that stock about to open for trade. back to you guys. >> all right we'll see how it does. thank you very much. we'll head to the bond pits. rick santelli in chicago you've seen a currency crisis or two. any effect on the bond markets >> yeah, no. i love the way you discuss the 1998 boy, we had a lot going on toward the end of the last millennium russian bankruptcy, of course, and all the issues were hugely market moving. i agree, currency markets have moved into a more sophisticated mode outside of peg. it doesn't dismiss the notion of volatility it doesn't dismiss the tail wagging the dog as the appetite for dollar is satisfying a variety of servicing issues. it's going to add another

channel of demand. look at the ten year note yield. one could say it might have been affected by safety issues. i don't think that's a safe bet. we lost the 290 handle we garnered on the 23rd of july after a long period of consolidation. but even with the inflation data, many saying that's an unusual response most likely it is some of these global concerns that took anything out of two days worth of inflation data that will get to in more depth in a second bunds reacted the same way as they slip into the low 30s it's close to a one month low with regard to closing we don't know exactly how they're going to close quite yet. let's get back to the july release of cpi the following chart is going to take us all the way back to october of 2011. because the last time we had a number higher than 2.9, we've had several 2.9. it was december of 2011. if you look at the core rate,

that is concernurrently the higt since september of '08 the chart starts in january of '07. finally, the star of the day, to some, and maybe the antagonist is one week of the dollar index just flying. it was already firm. now we've garnered a 96 handle hasn't seen it on a closing basis since early july of 2017 back to you. >> it sure is. only 9:45. thank you very much. time for a closer look at oil prices jackie deangels has it. >> oil was on track for the biggest weekly loss in three years. it's up more than a percent. it's interesting to see how it shakes out at the end of the session. here is what you need to watch and focus on the iea monthly report was out this morning talking about demands treads stable for 2018 it looks like a small uptick in demand for 2019. there's a lot of production out there, too coming from the united states,

opec said it will up its numbers to make up for some of the shortfall coming from iran and that's what the iea was focussed on in the particular report saying it's calm now but things could get shaken up in november if the iranian barrels come off. the markets haven't been sure. that's been keeping us supported here at these levels a new range seems to be developing about 65 to 72. but remember summer driving will tamper off those prices typically will move lower and potentially if saudi puts the barrels online. we could see lower prices. >> thank you very much coming up, the new evidence emerging of weakness in china's economy and amid trade tensions between that country and the u.s. "squawk on the street" will be right back hi i'm joan lunden.

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china people's daily, the newspaper seen as a mouthpiece for the government said today that the chinese economy is such a large size, such a heavy thing

can't be hidden by being low key, just like an elephant, can't hide behind a sapling. this is amid criticism of the trade minister's handling of the relationship with the united states we want to discuss all about china, but first, turkey is the big story today with the selloff of the currency. any thoughts on that and what it could mean for systemic risks in it world >> a lot of countries, turkey is a great example have been looking to china and saying whatever our options were in the past, and that's china, is going to be a big source of demand for us, a big investor china's got its own economic concerns, that means turkey has got to get back to its own fundamentals, not counting on some big new player in the global economy to ride in and offer a way out. >> let's talk about that big global -- what was supposedly going to be a big global player.

what do you make of these reports that there's criticism of xi jinping and his response and the handling of the crisis there? >> low intellectual nutrient value. to write a story that there are differences in debates in beijing. xi jinping was chosen for his leadership, it's not just him dragging the country kicking and screaming and trying to be more of a superpower. that's not really surprising we're spending too much time talking about those politics there are fundamental economic issues in china today that are the first order of concerns, especially for the markets and those deserve a lot more attention. >> such as >> such as on the trade side, we had data this week that people thought looked pretty good because chinese exports are holding up growth around 12% 12% is the monthly average for

the past year, and it came in july, in a month that you had had the most appreciation since the start of the 1994 modern exchange rate. and all they could do is keep pace with the exchange rates meanwhile, back home, the really large issues for china are domestic debt. it's not the trade wars, it's their domestic situation they have default rates coming up because they cannot follow the u.s. fed up. we saw busses lining up to take protesters home from beijing last weekend more of that to come >> the story is there's more of a higher pain threshold for those dealing with economic hardship from the trade side >> the party has a high pain threshold because party members don't really feel a lot of that pain but average chinese do and you

have chinese looking at the value of their currency holdings, falling against their cousins who already have an apartment in california, looking at how much better they would have done if they had been able to move just a little bit of their life savings out a couple of months ago than we are now. my colleagues don't think so most of the market out there is starting to agree with that. >> but the u.s. market versus the chinese market some say, see, that shows the u.s. is winning. is it? >> that would be a very danger inference to draw, on day one, the biggest stimulus boom that was dropped from on high that's a couple of decades, and you don't have long before the economic consequences come home to roost we have that coming next year. that's the u.s. story, on the chinese side, there's lots of fundamental limits for debt financing for them and that's

showing up in their markets. >> dan, thank you for joining us dow down almost 200. s&p is back to 2835. more "squawk on the street" in a minute

♪ ♪ good friday morning, welcome back to "squawk on the street. we're at post nine of the new york stock exchange. dow's down 219, worst day for the index since july, worst day for the s&p and nasdaq since july 30 as well. two big stories, turkey and the lira, and we'll get to all of it relationships with turkey are not good at this time, the u.s. offering a double on tariffs on steel and aluminum with respect to turkey and the markets selling off around the globe, we'll take a look at possible contagion theories in a moment and tesla is discussing the ability to take the company private. carl talked about the

turkish lira tumbling this morning, record lows against the dollar, down almost 20%. you can see 6.52 lira for every dollar take a look at that chart, that's the dollar you see charted there, a dramatic rise against the turkish lira over the past month they are having a currency crisis and it got worse this morning when president trump weighed in, tweeting, i have just authorized a doubling of tariffs on steel and aluminum to turkey as the lira slides down rapidly against our very strong dollar aluminum will be 20% and steel 50%. our relations with turkey are not good at this time. remember the president has been asking turkey to release an american pastor and some other american individuals who have been imprisoned there. now the turkish president have made things even worse this morning, he made a speech at the presidential complex and said a

number of things including don't forget this. if they have got dollars, we have got our people, our right, our allah, that sent the turkis lira tumbling because he does not honor the policies his finance minister who's also is son-in-law appointed just a month ago. he announced late yesterday that he was going to make a major speech today about a new economic policy. he said a lot of the right things, but they're going to have an independent central bank and stronger monetary policy it doesn't seem to have helped much take a look at the 10-year treasury, the equivalent of the 10-year treasury, okay, that's the 10-year note of the united states what i meant to show you was the 10-year of turkey which is yielding 20% the two-year is yielding 22%, so they've got an inverted yield curve, but we wait to see if the

turkish central bank does some policy shock to raise their currency dramatically. this is the kind of move you're going to need to see in turkey if they're going to stem this currency crisis. guys >> this additional tariff move that the president has suggested in a tweet turkish steel exports in the united states were down 50% in the first five months, it had already bit kind of hard with the new tariffs. it seems that that's more of an offset to the currency effect as opposed to some kind of a new assault on the -- >> there's three banks that are selling off. to the degree they're going to take losses for whatever's going on there let's bring in our senior economics reporter steve liesman, you've seen a crisis or

two, learight? >> it seems that the fed has to work together with the fiscal authority. i will point out, turkey did raise interest rates in july by 125 basis points they're sitting at 17.75 in the past month, so they have taken action the federal reserve was raising interest rates step by step, quarter points and you wonder why is the fed so gradual and make so many announcements that it's going to raise rates before it raises rates. it's communicating with the american public, but it's also communicating with foreign banks. the message has been, hey, guys, get your act together because there's more to come down the

road as the turkish bank has raised interest rates, maybe not enough to stem the outflow of capital but also it didn't get its fiscal house in order. and the biggest concern here is the foreign denominated debt. >> they have borrowed a lot in foreign currencies so when you pay back in dollars are lira, you have a lot more to pay back because of the weakness in the currency >> i don't think we're going to live or die, grow or not on turkish steel exports or aluminum exports i think the bigger question here, michelle, is i think there's a geopolitical question, which is i believe turkey has tactical nuclear weapons at the base there, it is one of the most forward nations of nato it's also an important staging

ground for our operations in syria. so those are questions that are sort of divorced from the economic issues that are out there, but if you go around the world and this is a question for donald trump, really, and you create a fire here and a fire there, and a fire there, at what point do they sort of join and you have all of a sudden wildfires? i think we're far from there right now. and carl asked a good question earlier, is this a slow news day? it might be some of that, but you have a series of emerging countries who have a problem, you might have a stability problem. >> turkey's degree of external borrowing, and the borrowing of other currencies, dollars and euros, is an extreme for an emerging market. so emerging countries are not as

much based on the dollar has they were before that's true for china, that's true for many emerging markets is that a fire break we don't know. perhaps we're just seeing softening of developing country markets around the edges >> i was going to say very quickly, if you didn't get the message from the first currency crisis that i covered or the second or the third, what you want to do is keep your foreign denominated debt low, if you don't have offsetting foreign denomination income, i don't know what to say, i feel sorry for you. >> tough love, that's what our viewers need is tough love as the dow tumbles triple digits, we're now looking at the dow's worst day going back to june 25. we have tony and peter guys, happy friday to you both can we ladder this on a spectrum

of cypress, greece, argentina. >> steve brought up an important point in bringing the fed into the debate we can look back at the temper tantrum that the markets -- back then markets thought the fed would eventually raise their rates by 3%. one can't easily blame this on the fed. and we think the fed will in fact ignore what is happening. i think the sweep of the s&p 500 was very, very close, .5% from its all-time highs markets have shunted off, and i think the fed will too and continue to march up the dot clock. >> we have two things, especially in turkey, we have idiosyncratic problems that are

unique to turkey and turkey is so easily influenced by the united states and russia because remember, istanbul is the gateway to the east. there are pipelines that go through the black sea into turkey from russia so turkey is very important geo politically. we should be concerned about turkey from that standpoint. however, we care a lot more about it in the context of a more systemic problem in that developing market rates have grown quite a bit in the last year should we really care about turkey as much would the lira be depreciating in the absence of higher rates probably not >> so you think it is in some form, it's a symptom of tighter global policy? >> i completely agree, look at indonesia, the rupee, look at

the rubble, look at emerging market currencies generally, look at the rial >> that's all true and then you lay on all the self-inflicted wounds. >> and also you have a trade war on top of it. >> when you look at the various nations and the dimensions, you know these are very idiosyncratic political factors. markets have reduced their expectation in terms of how high the federal funds rate would go, and it's likely to be problematic, nations have their own problems they i have to deal with >> the key kwquestion usually i this situation is there a lot of capital placing bets that are now falling apart. can we make that call right now, tony is that where we're at >> the answer is of course

>> is there enough that -- >> the world operations in a so-called fractional reserve system the intensity is less so in the financial markets. in terms of investors looking abroad to earn money in fact more money has been moving to the united states in recent years to earn additional interest on their moneys >> the dow is down 216 points. >> yeah. >> is that because of turkey or is that because the cpi this morning? >> we do not live in a univariant world, this is a koch indicakoch -- complicated situation, maybe the market was overbought to begin with there's lots of other risks that haven't been baked into prices. >> would i like to live in a univariant world

>> we would have nothing to talk about. >> that's true >> the markets are coming off the boil the s&p was hovering above 2,800, where does it turn into something more than that because we're through earnings and what's next that's going to drive things >> the transition methods can be slow and that's part of this story. and the reason for that is they are the engine and have been the engine for global growth for the first time as emerging markets central banks are forced to raise rates, it is going to slow their growth latin america could be back in recession as a continent next year and asian economies are slowing because their central banks are being forced to raise rates. that's what's important now, but it takes time to bleed through to our economy, so we should be fine for the negotiation sxt si.

>> in terms of current valuation, we'll be optimistic about the economy to grow in the low 6s or so not the global trade war, as if there's a financial warfare, selling of assets, currency intervention and sanctions that's something to be vigilant about. >> perhaps china selling treasuries, which we would not expect, no way in the base case. things like that would be very scary. >> we'll have you back on that day if that ever happens as we go to break, we'll look at some of the big movers, but news corp, campbell, drop box falling despite an earnings beat, as the coo offers his thoughts and we'll check on the legal implications of elon musk's tweet earlier in the wk theewi the dow down 202, don't go away.

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process. jim, good to see you >> good to be here >> we're chewing it over already. what are the responsibilities attached to a ceo saying something like that, what might it mean? what wiggle room is there? >> there are huge responsibilities when you're a ceo. this is a case study in why we have securities laws i mean look at the stock action, billions of dollars have been made and lost, set in motion by this tweet and a lot of stockholders of tesla are not sophisticated investors. they're fans of the car, i know amount a lot of individual investors own that stock there's a question whether twitter could qualify for that, but i think the general consensus, when you're talking about a $70 billion plus deal, twitter is not alone

number two, if you do say something, it cannot be misleading, incomplete or worse wrong, even false. everybody saw the way the stock shot up on that. it so if this funding is not secured, that was a statement of fact, that wasn't saying i hope to get the funding, or i'm encouraged, or it looks good that was a fact. if that tushes out to be wrong, there's going to be serious consequences for that and there should be. >> you say if it's wrong and that's what a lot of people have said. >> the word secured is not binary, there are grades or secure, security >> everybody's going to be pulling out their dictionaries now. it's kind of like what is the meaning of is? the question is how do you parse this the ordinary english language secured means secured, have it

in hand. maybe you can slitter o eslithef that, i'm sure lawyers are working on this. but if it's not there, it's misleading >> where could it go on its face >> it could go to failure to file ak, which is a normal way to disseminate information like this to a misstatement. but if they can prove that his goal was to move the stock up and punish short sellers, we're getting very close to the fraud line that's very difficult to prove, i'm not saying that's what it was all about. and it also goes to the point that the company needs to get out there and explain this they need to file with the sec and tell the world not only what they're planning to do, but what has gone on in the past week to put this into some sort of context. >> what do you think that the sec is making inquiries into not just their tweets, but their policy statements?

>> they wouldn't be doing their job if they weren't doing that but i am surprised how flat footed the board seems and the company itself seems they're telling us, i guess they're not telling us, cnbc reported that they're going to be talking to lawyers and advisors next week they should have been doing that long before the tweet ever went out. >> a subset of the board did come out the next morning and said last week elon musk came to us with this idea. he has a record, obviously, publicly trying to advocate for his own stock, and that would seem to complicate efforts to get investors to buy this product. if you have questions around his behavior and his future. >> i find it very puzzling and

contradictory that musk himself has been complaining that the stock is going up and down why is the stock going up and down a lot of it is because of what he said. is he going to apologize again i have been looking at brilliant entrepreneurs, and give him his due, he has a phenomenal track record here, and i love the cars, but people like that need to be surrounded by other people who make sure they stay within the boundaries of the law, you need strong lawyers, you need outside counsel. >> you were talking about exchanging the public markets. the public markets actually treat him very well, when you look at the multiple which the stock has.

do you think there could be a group of investors out there that are so enamored with him, that they would strike the kind of deal that investors would be looking for? general finance terms because they have such a belief in the long-term that eventually they're going to make a ton of money. >> anything's possible and he's got a great story, it wouldn't shock me that there are people like that, but if i was musk, i would want to think carefully about who they are and how long-term they are and how enamored they are, if you're substituting the public market for one or even a handful of very powerful venture capitalists or investors, you're bringing somebody under the tent with a tremendous amount of influence and control over what happens. is that really better than having public markets? looking at how amazon has traded over the years the public market has been amazon's best friend if you've got a great story and a vision and you can articulate

it, i don't know why you wouldn't want to be in the public >> arguably, you could have found entrepreneurs like musk, like bezos or whoever who continually sustained short capital. but they didn't need the capital all the time musk needs the capital on an ongoing statement. >> the visual and the story, this is an odd time to be thinking about going private when you're still burning through cash he suggested a profit, which i kind of raised an eyebrow to that on the last earnings call but he hasn't yet produced it. yet in this cash flow situation, this is not a typical situation, maybe not for a buyout, maybe for a deep pocketed venture or something. but i'm not at all convinced >> it seems like directional you're leading to this does not happen at tesla.

>> i'm a little cemeskeptical im >> you would have to have a willing donor, who will believe they're going to get equity in return that will really pay off. >> people are throwing in sovereign wealth funds and some of those things, maybe that would be an avenue, if they're really prepared to invest long-term with very, very high risk but we're talking about a big number here. >> it's the biggest ever venture capital deal >> saudi arabia may have moved into 4.1%, but this will be fascinated if they really do go private. as we go to break, taking another look at the major averages here, the dow's settling into this loss of about 200 points or so and in turkey erdogan continues to make statements about the

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well, it'sonce again.eason >>yeah. lot of tech companies are reporting today. and, how's it looking? >>i don't know. there's so many opinions out there, it's hard to make sense of it all. well, victor, do you have something for him? >>check this out. td ameritrade aggregates thousands of earnings estimates into a single data point. that way you can keep your eyes on the big picture. >>huh. feel better? >>much better. yeah, me too. wow, you really did a number on this thing. >>sorry about that. that's alright. i got a box of 'em. thousands of opinions. one estimate. the earnings tool from td ameritrade.

. we're monitoring speech by turkish president you are doe w -- erdogan, who's talking about this currency crisis as the turkish lira hits an all-time low against the dollar, and that does spill over into the emerging markets and there is an i-shares stock index in turkey, it is down by more than half its value year to date the question has been for broader markets, does it touch off a broader chain of emerging markets. right now the main emerging markets funds today are showing about a 2% loss, that's far in excess of turkey's index there's the vanguard emerging

markets down 2.2% vwo, the eem is the big one there, i always point out that the big chinese internet companies are the big oldings of the eem and it not a traditional type of play, all of these basically track these global indexes, so it's a pretty big hair cut the s&p is up more than 6% year to date. >> if we just look at the dollar index. >> yes >> the dollar looks like it's been stronger this year. you compare the dollar against emerging markets, wow, it's taken off like a rocket. this situation where turkey probably reminds everyone just how expose everyone is to a strong dollar, certainly wouldn't be as bad as we're seeing with turkey >> the emerging markets currency index are looking pretty much

highly stressed, let's put it that way >> let's talk about the -- let's bring in art hogan hey, art, good to have you here. put this in context for us are we talking about turkey this much because it's a slow summer day in august. or is this really meaningful and we can look at the dow and say, okay, it's weaker because we're worried about some kind of systemic risk coming out that part of the world? >> i think financially, it's not strategically important. when you think about the turkish stock market, is about 1$100 billion in market cap, or thereabouts. when you think about their currency that's been going down since 2010 in terms of strategically in the financial system, not that important. geo politically, they certainly have some security seasons,

where they sid geographically, and russia pipelining petroleum products into their country. and the eem, i think they're about 45% of the eem i think there 1% of the emerging market index so generally what we're seeing in the eem market is much more related to the u.s. dollar >> i'm sorry to interrupt you, but we are showing on the left the live event with erdogan, to see if he has anymore comments that hurt the lira like he did earlier. and turkey is getting hit hard, between 4% and 5%. they have been down for the week you're not worried about systemic risks, when you talk about the transmission, when you're worried about banks that might have exposure. and are you worried about broader consequences even for our u.s. market?

>> certainly the euro zone has its host of problems and i would say italy is probably more important to that when they present what their budget is going to be and their plans for next year with their new administration, that's not going to go over well i think in brussels if you're concerned about the euro zone, i would be concerned about turkey right now for those with exposure to turkey, this is not going to be an easy ride, and it going to get worse before it gets better. but i think that turkey has larger problems right now. >> we finds ourselves in a world where you not only have trade rifts on multiple fronts, but we're in an environment where sanctions are being tossed around more and more loosely, the thought of using currency as weapons. putin and erdogan just spoke personally on the phone. doesn't that make you want to think of additional hedges you

didn't have before >> carl, that's a great point, but that sort of reminds you of what we have been concerned about since the beginning of the cold war for trade when this escalates, you get concerned and start thinking about perhaps raising more cash or being more defense by being large cap and multinational. i think that's true and consistently true. part of the trade war, if you think about north america, conversations with mexico, sounds like they're warming, conversations with canada this week, sounds like that's warming. we're not in with the euro in general, but with china, which is part of this trade war, and this trade policy concerns in the of marketplace are getting worse not better we don't see an exit ramp with chandler rig china right now. we had a very good second quarter earnings season and unfortunately when that ends, basically today, we're going to

see what kind of a headwind we have in the market and that's going to cause a volatility that we haven't had this week in the markets when you get in that news vacuum of not hearing about corporate earnings and starting to focus on trade again >> this whole first half or 2/3 of the year is earnings peaking, international growth going to decline going into next year what does the fed do about it? with all of the things we're talking about today bear upon those questions in a major way >> that's a great question i think embedded in that question, is does the fed do anything, i think the ecb is does the fed have a reaction to that and jay powell has been agnostic as to everything that's been happening on the globe and he's been agnostic to a yield curve. so do we see a change in u.s.

monetary policy or even as is spoken to at their next meeting when they're going to raise rates in september i don't know but i will tell you this, during the first half, we have seen incredible earnings for the s&p 500, a pair of 24%ers and guidance for the second half didn't come down at all. that's a result of a couple of different things, lower corporate taxes, but the fed is higher than norm it. we're seeing single digits for the s&p 500. >> one of the key questions still out there. thank you, art art hogan, really appreciate it. >> when we come back, we're continuing to keep a close eye on this market action, looking like a sellout to close out the week, the industrials lower by 197 points, decline of 37% and

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at what they do is indispensable, and i couldn't ask for a better partner. trump tweeted that the united states relationship with turkey is not good the lira has been plunging again today down about 20% or so the so-called manhattan madam is testifying before a grand jury in washington, d.c. as part of the mueller investigation. former upscale prostitution ring operator kristin davis has close ties to 2016 trump campaign advisor roger stone. buffalo wild wings could be adding sports betting to the

me menu a spokesman for the chain said it has a -- and a historic night at the ballpark in toronto. mookie betts became the first mlb player of the year to hit the cycle. >> it is speci >> the nasdaq's longest daily win streak of the year on pace to end at 8. the wall street journal as an article out saying valuationings are slipping even as stocks hover near records joining us this morning, luke venture's managing partner is here with us the journal also argues that some of the recent weakness in tech is causing some managers to trim their tech heavy positions,

what do you think the important narrative is right now regarding tech >> i think there's going to be a diver divergence in the fang names, and the-no no-nots are going to be facebook and twitter. i think tesla actually moves into one of those kind of leadership positions and i want to emphasize why that can happen, is these fang stocks are near all-time highs, why do we think there's going to be this divergence, if you think about those companies that are in the have categories, tesla, google, amazon, those companies are still disrupting some major markets, everything from robotics, a.i., autonomy, there's just major markets that they can go after. we're very optimistic that that is something that can keep these names going. >> i want to make sure i upd

you, gene. did you say there's a less than 50% chance that tesla remains a public company in other words you're more inclined to belief elon musk >> the simple answer is yes, i guess, that's one way to put it, is i believe musk has said slightly different i think the company is going to operate and actually createsmore value as a private company i know you have talked a lot about it this morning. so there's not a ton more that i can add beyond this simple reality that this is a very different company, a very different valuation than other tech companies in the private markets, we spend a lot of times at luke ventures looking at private companies i think investors can win, i think tesla can win, i think

elon musk definitely can win because he doesn't want to be a public ceo as much as i would like tesla to be a public company and fall into this new group of what i think will be tech leadership. i think a year from now, that's probably not going to happen >> gene, do you see as many very large venture opportunities of this type that are this capital intensive as tesla is right now. uber's only got $20 billion in actual capital investments have been made into it over the years. it's not as if somebody wrote a $50 billion check to it. >> tesla, let's say it's an $82 billion enterprise value they actually have a product, the private world deals with a lot of them don't have products, the ones that do have products have much higher valuations and so you have a fortress around

their manufacturing process, you have a brand, you have other x factors around what they're doing in solar you have the battery storage i just think the capital that's been invested over the last decade, it's a very important valuati valuation. our belief is that there's a greater than 50% chance that this happens when the news first came out, i put the chances of 1 in thre3. it's very clear that there would be support there >> gene, we have breaking news no now. getting some news out of the white house about turkey >> we have a statement from the white house on the president's earlier tweet from the president on turkish president but not much news here as he stated the president has authorized the preparation of documents to raise tariffs of

imports on steel and aluminum from turkey. section 232 tariffs are written into countries whose exports threaten -- talking about the president authorizing the preparation of documents here. that's a little bit different in tone, implies that there might be some more process involved here than what the president tweeted just about an hour ago, take a look at that tweet from the president of the united states, saying i have just authorized a tariff against turkey aluminum will now be 25% and steel 50%. our relations with turkey are not good at this time. so we'll see where this all goes this afternoon we'll try to get some more details from the administration here underlying the president's

decision >> the tweet that the president is very, very willing to go after turkey when they're very weak at the moment because he's asking for the release of these americans that are being held in prison and in particular one pastor who is there. and this is even though steve bannon told us at delivering alpha, that actually president trump is attracted to people like erdogan, and his willingness to do this even in the face of that is what i find interesting. let's play that sound bite >> i think he likes putin. it appears to me he likes putin. >> i think he gravitates to personalities that are strong personalities. he likes president xi, he likes erdogan, who i think is the most dangerous guy in the world and i think he's attracted to putin because i think he looks at those people as strong leaders of countries, they're nationalists, they put their countries first and they get on

with it and they don't care what other people think >> does it bother you that he's attracted to those people? >> no, it doesn't. >> my question was are you concerned that he's attracted to people like that clearly, his willingness to go after turkey, even though he likes erdogan, means that he'll put his personal feeling aside when he needs to >> the fact that you were able to pull out of bannon to say on the record that erdogan is one of the most dangerous people in the world and at the same time is not bothered that the president has respect for him. the president views this tariff and trade issues as overriding all of his sort of whatever admiration he might have for erdogan personally or as a strong political leader. this is a president who views tariff and trade agenda as

absolutely number one as he goes into midterms in november, that he want tos to demonstrate to voters that he's going to deliver on those things he promised >> we're showing this live picture of erdogan who's speaking, and he's been speaking a long time today, in part because he's been dealing with this currency crisis he urged everyone out there who has dollars, euros or gold under their pillow, they should go exchange it for lira at their banks, that would certainly support the lira, but it's not happening as we look at the chart. >> and putin and erdogan had a conversation today the dow is down 218, session low is 285 so not far off of that, back in a moment

let's get to rick santelli with the rick santelli exchange. >> hi. thank you. i want to welcome my guest, former dallas fed vp jerry, thank you for joining me this morning >> thank you, rick >> i look at the board i see yields on all the high quality sovereigns from bunds to tropical systemy lower emerging markets are on fire and not in a good way. all of this to me sounds highly disinflationary but yet all the conversation regarding tariffs and trade and foreign policy all seem to center around inflation. can you define that for me >> well, look, of course the fed is fixated on this obsolete theory that faster growth causes

inflation. we're seeing as you just said the opposite strong growth and disinflationary policies because the fed policy of raising rates has mainly affected the dollar and not the rest of the yield curve. >> now when i look at all the world events going on, turkey, the lira, trade between russia and turkey, what's going on with russia and sanctions it's going to making fed's job and to a larger extent europe and mario draghi's job more difficult. >> yes at both ends, u.s., eu, ecb, if there's just a lot of disruption going on that makes it very difficult for those banks and other central banks to adhere to the stated policies. >> now, jerry, once the dust

settles, do you, indeed, think that the tariffs on their own will be inflationary it seems like supply chains have gotten so sophisticated that in many ways they can mitigate the pressure of tariffs? >> yes rick, as you know, i've been inflation hawk all my life but this time i don't see it right now. and my concern is the fed believes against reality that we're going to have higher inflation. so keep hiking rates and i don't think it will stop until it causes a recession >> i got you jerry, a difficult situation in traded in the '70s and '80s and inflation can be a scary thing but we haven't seen it on our door step yet. thank you for your time. now send it over to john ford what's happening on "squawk alley" >> galaxy note nine 9 from

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busy friday this summer. watch for major averages dow is down 199 off the session

loss we're watching the unrest in turkey as well, the lira plunging against the dollar. a lot to get to in a moment when "squawk" ally begins don't go away. alerts -- wouldn't you like one from the market

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and turkey's capital of ankara 11:00 a.m. on wall street and "squawk alley" is live ♪ good friday morning. welcome to "squawk alley". a lot to get to today. we'll begin with stocks. sell off in the make as the dow is down 188. turkey instability one of the leads rippling through the market as president erdogan speaks this morning brushing off concerns of a weakening currency mike