ahmet davutoglu says he will step out later this month. president erdogan can tighten his grip on power. but the outgoing premise or appears to remain loyal, in public at least. >> when he spoke to party delegates following the announcement, he chose his words carefully. >> i maintain my loyalty to our president until my last dying breath. no one has ever heard a word from the against our president and no one ever will. i want this to be known clearly and i will not allow this issue to be exploited. the honor of our players and -- of our president is my honor. his family's honor is my honor. his family is my family. >> davutoglu appealed to party members not to allow his resignation to split the governing party which has been in charge of turkey since 2002. the opposition has criticized the move and on the streets, opinions are divided. >> our great mentor believes this is the right move your it is great. it means he was not happy with davutoglu. he will introduce someone who works hard. it is not good to oppose everything. whatever our gr

who can we expect to replace prime minister davutoglu?eporter: there is a lot of uncertainty right now. there are a few names being thrown out about who could replace prime minister davutoglu. one of them is the minister of justice. erdogan'sone is son-in-law. rishaad: thank you a lot for that. we're going to talk about politics and economics. turning to the u.s. -- we will find it how donald trump's presidency is going to affect the reason. minutes --ed in 10 do not miss it. checking in on other stories, aegon man is with us. >> optimism still outranks pessimism. last night, a china state council meeting said more needed to be done to promote private investment growth. biggest auto recall in history has doubled in size. the regulator has ordered to to remake moreta replacements. two more deaths have been linked to the airbags in malaysia. ceo saysrio tinto tough times are ahead for the company. he says the board is still reviewing a possible expansion of its goals. early have given out gains in sydney. 31 passengers were hurt on a flight

stephen: his intention when he chose davutoglu was for him to be a puppet.s anyone who will actually be a -- a new one who would actually be a puppet and go along with this plan for a new constitution which will abolish the prime in, essentially. anchor: how much support does erdogan have in the country for this shift in power to himself? stephen cole: the polling would suggest most turks do not support this change, but he is quite popular. the justice and of element party, which he is technically no longer a member of the the kind of leads it, got almost 50% of the vote in november. he calculates he can push this through, he can get the public to support it. expect snap elections again in turkey, in the hope of getting enough of a parliamentary majority that he can bring in a new constitution. anchor: what impact does this have on turkey's relationship with the united states and europe? sign thatt is another turkey is not ready for serious negotiations over entry into the european union. with the united states it does not change much. erdogan has been the p

the party stripped prime minister davutoglu of his rights to promote provisional leaders.t shows there are people in the party who want davutoglu out. 4%, the biggest decline since june. the biggest loss since 2013, and the yield on turkey's 10 year bonds on the rise, close to three week highs. anna: thank you very much, simin demokan setting up a story from istanbul. let's bring in our guest host for the next hour and a half, simon french. great to see you, has ever, in the studio. just a reminder how politics can rub up against your investment strategy and investors are really caught in the crosshairs on this one. when you look at a country like turkey and see the politics that are playing out, is a worrying picture? simon: it is a worrying picture because of where turkey sets. -- sits. historically, they have been the boundary between asia and europe, but it is probably more of an acute focus this year with the migrant crisis. there is uncertainty, especially in the u.s., about recent regime change in the middle east, and what that has done to destabilize the political,

he replaced davutoglu, who stepped down last week. reporter: annoucnign his new cabinet, there was no doubt of his friendship with president erdogan. the government is entirely of supporters. chaning the constiution to give the president more power. duty weost important have is to change the constiution to reflect the relationsihp between the president and people. reporter: not everyone is happy. leader fears it could give erdogan authoritarian powers. >> all these powers will be controlled by one man. inevitable to wind up with despotism. reporter: eu officials also have concerns. laura: to talk more about turkey, i have a specialist in strasbourg. we had turkey's new p.m. not wasting any time, saying he plans.eporter erdogan's should turks be worried? fore has been nominated that. there is a de facto regime and goingfessed that what was anti-constitutional. the man of be recep erdogan and change it to one-man authoritarian regime. anything cannot say against this system, it is thereee in western europe are refugees and erdogan is us

the shakeup comes after former premier ahmed davutoglu step down after an increasingly public split withident erdogan. mr. yildirim has promised to work with the president as mr. erdogan seeks to expand his powers. in chile, a toxic red tide is causing a wildlife disaster. the southern coast is celebrated for its dramatic landscape and rich ecology, but now an algae bloom is threatening not only its marine life but also the livelihood of the fishermen who depend on it. reporter: for weeks now, scenes like these have been all too frequent a lan chile's southern coastline. fish dying en masse. it's frightening for the locals, and fishermen fear for their livelihoods. >> we estimate that since may 7, 500 tons of fish have washed up on the beaches here. reporter: the cause is what is called "red tide," an algae bloom that robs marine light of oxygen and makes seafood toxic. >> the el niÑo weather phenomenon that is warming the ocean is to blame for the red water. the changes in ocean currents and when patterns have brought perfect conditions for algae to spread rapidly. reporter: it is a dis

in does seem as if according to a person familiar with the matter that the ak party, davutoglu's party hold a leadership contest within about 15 days and the prime minister won't be a candidate. that ourhe's lost struggle with president erdogan. the dollar is falling a little bit against the lira today. over three days, the dollar has risen by 4%. markets do not like power struggles between presidents and prime ministers. francine: they certainly don't. the president probably will end up having more power and be less influenced either eu. oil advancing a second day after u.s. production fell the most in eight months. barrel,de around $45 a how are middle east oil exporters planning for the future? let's get the view of rony mourani. just picture this. the mall will cover an area the size of 50 football field. great to have you on the program. i don't even know how you get around. what if i'm looking for something -- do people walk or take cars? rony: of course they walk, but we will provide transportation as well. we will have small taxis and golf carts inside the mall. francine: it is

afterlaces davutoglu losing a power struggle with the president.he lira has fallen 6% this month while it stumble benchmark's down 16% in dollar norms. to beis said investigating 12 people for allegedly manipulating the shares of financial holdings following a 243% surge in the company's share price. regulators continue to investigate what was behind the rise. has artie filed a complaint against what it says is a continued cancellation of transaction on shares. insident obama has arrived vietnam at the start of an asian trip, indent building stronger ties in the face of china's growing influence. he is that there is sitting president to visit after the end of the award. washington is here to upgrade relations with any emerging the rapidlyer, expanding middle-class is a promising market for american goods. says relations must not thread regional stability. this is bloomberg news. manus: iran has said it will not join any freeze in oil production until the second half of the year or until exports returned to pre-sanction levels. on that one of 27 ana

dealing,of the although davutoglu, the prime minister who is now on his way out, was sort of the publicof these negotiations, the person calling the shots in the background always was erdogan. merkel in germany in particular, this is so important that it's hard to see how on the european side there would be any backing off from that agreement. francine: tony, how important is the deal for angela merkel at home? >> very important. turned, shecrisis said herself, that the refugee crisis is basically the biggest challenge of her chancellorship. she's been in power 10 years. she is facing a lot of domestic controversy. we recall this incident involving a kind of ditty written by a german comedian that is being investigated for possibly insulting erdogan. then there's reservations in the german political establishment about dealing with turkey for a range of reasons. it is very important, the linchpin of her effort to solve the refugee crisis at this point. francine: tony, thank you so much. let's welcome david stubbs, j.p. morgan asset management global market strategist. thank you so much.

mark: davutoglu said the decision was not his choice.u.s.ines at airports are long and will get even longer the summer. officials warned that delays will lead to missed flights and may even hurt the economy. lawmakers blame the transportation security administration, saying the agency did not anticipate growing traffic levels. the tsa says it is doing the best it can with the budget it gets from congress. the calendar says may 5, but it is cinco de mayo for anyone celebrating all things mexican. president obama is scheduled to hold his final single demaio reception at the white house. many have the impression that may 5 is mexico's independence day, but it's not. that day is celebrated on september 16. cinco de mayo is not even a federal holiday in mexico. global news 24 hours a day, powered by our 2400 journalists in more than 150 news bureaus around the world. i'm mark crumpton. very much.k you commodity markets closing in new york. let's look at today's biggest movers. oil rising for the second time in two days. wti settling in about

. ♪ Âi ♪ manus: prime minister davutoglu expected to quit having lost a power struggle with the presidentnervous about the strength of the global economy. last man standing donald trump is the sole republican contender after john kasich quits. he now must unite a divided party. it is

turkey announced today he's resigning, moving the nato nation ever closer to authoritarian rule ahmet davutoglu had held his office since 2014, but he was at odds with president recep tayyip erdogan, who's pushing for greater power. still, the prime minister pledged continued support for erdogan, despite his crackdown on dissent. >> ( translated ): my loyalty to our president will continue until the last breath i will breathe. nobody has or will hear a single word against our president from my mouth. everybody should know that and i would never let people exploit this matter. >> woodruff: the resignation comes as europe is relying on turkey to cut off the flow of migrants, and the u.s. needs its help fighting the islamic state group. >> sreenivasan: back in this country, the number of sexual assaults reported in the military stayed about the same last year, but pentagon officials say it's still far too high. in all, there were 6,083 reports of assaults in 2015, virtually unchanged from 2014. but, more than 16,000 service members intervened in situations they believed could escalate to sexual as

davutoglu is seen as the voice of moderation and the more people who like him and the central bank governore more people who like this who leave the stage of turkish politics, the more concerned investors will have a about e direction of economic policy in the country. --david: isn't this a note of democracy?a raw another country moving to a raw democracy? the president is getting everybody out which gives him more control, not related to what i would call fiscal policy, related to beliefs? compareyes, this two things happening in hungry -- you could look at poland, economist look at, compare what the president is doing to russia, he is consolidating a lot of power around himself. keep in mind that he is extremely popular, elected by a majority, his party got a majority in the elections at the end of last year. a lot of concerns about where he is taking turkey but he remains popular. carol: thank you. holding aminister is news conference and we will monitor those headlines and bring you anything as it is known. jon: up next, we talk alibaba, revenue better than estimated and cloud revenue s