52%—52.5% that erdogan won.ng way to go before you're relevant. the chp published a pamphlet called ‘radical love'. you have said during the campaign "a neighbour who doesn't think like you, just give them a hug, show them that walls can be torn down with love." "i like hugging, nobody will escape our hugs. " is that your platform to launch yourself on the national stage? go around hugging everybody? finally, 2023, the next presidential elections. could we see you stand as a candidate for your party, the chp? mayor ekrem imamoglu, thank you very much indeed for coming on hardtalk. thank you. thank you, you're welcome. hello again. we'll take a look at the weather picture through tuesday, and i think there's going to be quite a bit of cloud in the sky first thing in the morning, because this is what's going on at the moment. we've got a stripe of cloud in the west. this is a weather front that's going to be pushing eastwards. as it does so, it is all the time pushing into an area of high pressure, so the front it

52%—52.5% that erdogan won.a long way to go before you're relevant. the chp published a pamphlet called ‘radical love'. you have said during the campaign "a neighbour who doesn't think like you, just give them a hug, show them that walls can be torn down with love." "i like hugging, nobody will escape our hugs. " is that your platform to launch yourself on the national stage? go around hugging everybody? finally, 2023, the next presidential elections. could we see you stand as a candidate for your party, the chp? mayor ekrem imamoglu, thank you very much indeed for coming on hardtalk. thank you. thank you, you're welcome. hello. there's some warmth and some sunshine to start this forecast — by the end, we'll see some rain for many. more on that in a moment. here's how monday shapes up, an area of high pressure centred over the uk, for now keeping atlantic fronts at bay. and a good deal of sunshine through monday morning. there will be more cloud across northern scotland, shetland in particular and also across ea

president erdogan once said whoever wins istanbul wins turkey.s ekrem mamo lu now the man to watch in turkish politics? mayor ekrem mamo lu, welcome to hardtalk. are you surprised you are sitting here in the mayor's office? it is the first time in 35 years that your party has had this position stop at your party leader said, do not forget today the victor is democracy, that's when you one, and he said the whole world that believes in democracy is proud of turkey ‘s. so the ruling ak party, president erdogan, your party are suggesting are good democrats, they did not regularly election. —— rig the election ‘s. what kind of precautions did you take? president erdogan has described you, despite your victory, as a lame—duck. he's right, isn't he? i tell you what he means by it. yes, you won 54% of the vote against your opponent... just let me finish saying this, yes, you won 54% of the vote, your opponent from the ak party only got 46%, however, the ruling ak party has 25 of the 39 districts in istanbul. they also have the majority of the seats on th

many still support erdogan. that is not likely to last. i interest rates have shaken his grip on power. relations with the rest are at a low point. erdogan held the post before h e ascended. >> we will see that in days. >> no one can say windows better times may come. he survived the bank of the coup attempt. >> our correspondent is following the story. she joins me from istanbul. good evening. this is definitely in a comfortable and painful anniversary for a lot of people. talk to me about how the country marked the moment today. >> this has been a very emotional day for people in turkey. july 15 is a public national holiday now. we have seen a number of events commmmemorating the victims ofof ththat dmatitic night. the psident l ld flolowers. he also spoke at a huguge eventt istanbul. a very symbobolic location. the airport was briefly occupied that n night. he later retururned to t the ci. he announced that the coup attempt had failed. hihis message today, one of hihs key messages was traded in trying to drag turkey into darkness. the c

erdogan flexes his muscles. central bank -- the turkish president fires the head of the central bank. the lira falls, equity sells off. david: welcome to "bloomberg this monday, july 8. a little something going on in france. it was a great game. aix: their second win in row? david: that's right.

i've met with now president erdogan, prime minister erdogan while i was the n.a.t.o.mander, i met wh him. i know very well the minister of defense who, at the time, wa chief of defense, the senior military officer, gennoally halusiw the chief of defense, they are very dug in at thisoint. and here's an important point, for president erdogan, this is a pride point, not only for him personally, but as he sees it, for the way turkey is viewed ine the ational recommend. this is going to be a hard one to find comn.promise upo >> reporter: there is an important point of clarifyis hts i asked president erdogan about the s-400 deal last year. he said we tried to buy it from the u.s., we were we fraud and we heard president trump echo the same narrative. is that exactly what happened? >> no, as usual, there are shades of grey in all these conversations. from my perspective, also unclear the turks were actually told, no, you can't buy the patriot missile. certainly, the u.s. has reverse course under the trump administration and made that offer ry explicitly. i would say if presi

taylor: coming up, president erdogan fiers the central bank governor.urkey is not the only country where --this is bloomberg. ♪ romaine: the turkish lira edging lower today after president erdogan unexpectedly fired the central bank chief, saying he was tired of waiting for a rate cut he's been waiting for months. president trump re-upped his attacks on fed chair powell. here to take us all through this -- vincesecond row sacorella. i look back to the base care last year where he jumped, why do you think the market was more willing this time? >> we kind of saw it coming. it was telegraphed by her to want. -- by erdogan. the situation in turkey has stabilized someone. inflation has been under control. the heir apparent is clearly not going to be making any unwise decision going forward and you --e to think erdogan will be the interest rates. taylor: erdogan in some ways has been proven right that he's not building interest rates and the prices have come down. vincent: a lot of people say they didn't know inflation will get this low in turkey. you can sor

shery: president erdogan flexes his muscles.kish president fires the head of the central bank and threatens anyone who defies his government economic policies. sinks.a and a trade spat between japan and south korea is running to of been the global technology chain. the boeing deal gets rounded as a saudi budget airline is airbus planes. sinks. let's get a quick check on where the markets are trading. we continue to see downside pressure for equity markets. we see the s&p 500 falling for a second consecutive session. tech and health care leading the declines. apple plunging at the moment after that downgrade we saw earlier today. lingering impact of that strong jobs report we got last week. that is clouding the outlook for fed rate cuts. we are now seeing the energy sector in the s&p 500 leading the gains, the big winner as we see oil gaining ground on geopolitical tensions in the middle east over iran's uranium enrichment. of course, a key focus this week will be on chair powell talking to congress later in the week. let's look

anna: erdogan derails the rally.he turkish president fires central bank governor, sending the currency 3.5% lower. plus, new democracy prevails. the snap election in greece turn around he will the financial crisis. >> i will deliver on my agenda, an agenda to grow the economy, to create more jobs, but also to make sure the greek people feel safe again. anna: welcome to the market open program this monday morning, less than a half-hour to the start of equity trading. let's look at the features. the good news is bad news mantra is dominating. the end of the rally in everything, ftse futures, tax lookses, and cac futures like it will be weaker in trade. we got the jobs report. stocks stateside and europe falling on that, building in lower expectations for fed rate cuts. that's the big picture story. let's look at how that's gone down in asia. that's part of the asian session. the losses have come through convincingly. the hong kong market, chinese market moving to the downside. there are specific geographic political fa

erdogan hasresident taken control of the central bank.he do if there would be a jump condition in the bond market? damian: the lira is flat to the dollar and given the fact that they dismissed the former central bank governor earlier this week. just thinking about the sanctions, it remains to be seen what erdogan is thinking. he thinks perhaps his personal relationship with trump will bridge the divide. there are three sanctions being mulled about within washington. one is quite extreme, borderline iranian sanctions. that would be devastating for the economy given its external debt loads. , the proxy for sovereign credit risk in turkey is up 14 basis points to well over 400 basis points. that is the second widest to argentina. as we try to get a sense of what he is thinking, i think it has more to do with decisiveness inside the ak party. , the former defects president and former finance minister splinter off and maybe creating their own party. on the heels of the loss of the istanbul mayorship, it is anyone's guess what he is thinking. m

in turkey, president erdogan says u.s.issile defense system. he says president donald trump is not in favor even though some u.s. officials do want sanctions. the u.s. has warned deploying the system could undermine nato's military capability. there is the pontiff questions this morning after saturday night blackout that left parts of manhattan in the dark for a few hours. the president of the electric company says the outage did not happen because of high demand on the electric grid. he said it would take some time to determine what exactly did happen. officials are ruling out terrorism. 50 face of the new british pound note will be code breaker and the father artificial intelligence allen turing. he was selected from almost 1000 eligible nominations suggested by the public. he was a war hero for breaking nazi germany's enigma code his work on his question of whether computers can think laid the groundwork for artificial intelligence. this is bloomberg. tom: thank you so much. we will simply stop what we are doing to unde

guy: at the same time, is president erdogan wrong?

erdogan flexes his muscles. did turkish president fires the head of the central bank -- the turkish president fires the head of the central bank. the lira falls, equity sells off. david: welcome to "bloomberg this monday, july 8. a little something going on in france. it was a great game. aix: their second win in row? david: that's right. alix: even president trump took to twitter to congratulate the team, versus a couple days ago, when one of the women said we are not going to the white house, and he said why don't you win first. now apparently very proud. david: it was a great game. the u.s. was really taking it to the netherland for the first half, but they kept it up in the second half. alix: go team usa. in the markets, you have powell coming out in the next couple of days. drive up market reaction for this week. euro-dollar lower by 1/10 of 1%. the dollar getting a little bit of steam in the last 20 minutes of trading. crude also quiet. it is a quiet market with idiosyncratic events turkey, like deutsche b

what erdogan is doing in northern syria and iran and erdogan buying s-400s from russia.his is good strategy to show u.s. favor and disfavor with one president, the president. >> one minute left. to these countries, turkey, to your point, unresolved issues. for the most part people are waiting, watching for this charmed offensive to really work s, do you agree with that? >> let's look at all of this from iran's perspective. from the supreme leader perspective. president with trump smiling. the president with xi smiling. the president with erdogan smiling. the president with mbs smiling. iran feels pretty isolated based on u.s. president charm offensive. that is part of this chol thing. china, russia, will always be a pawn in this game. president is smart to engage iran's backers in this way. charles: michael, thank you very much. >> thanks for having me. charles: kamala harris breakout moment at the first democratic debate has her breaking out in the polls. not just harris, but all the female candidates are moving up. inciting hopes that the year will be that we say madam

president erdogan abruptly ousting the central bank governor over the weekend. we will discussed the latest move -- we will discuss the latest moves in turkey. this is bloomberg. ♪ ♪ guy: from frankfurt, i'm guy johnson. vonnie: from new york, i'm vonnie quinn. this is "bloomberg markets." we are just a little into the monday session. abigail doolittle is with us. abigail: starting off the week with a little bit of a risk off tone. the s&p 500 and the nasdaq in the u.s. down for a second day. the s&p 500 down about 4/10 of 1%. the tech heavy nasdaq underperforming, down about 8/10 of 1%. tech the worst sector of the day for the s&p 500 and the nasdaq. the german dax down just slightly. the risk off session really started in the asian session. investors selling that shanghai composite. let's check on a chart we haven't looked at any while. in yellow we have the shanghai composite, in white the s&p 500, blue the german dax. beginning of the year, risk on rally, all up about evenly. then the shanghai composite really took off, leading the way, at one point up 30%.

rates diverged massively from erdogan.is unusual view on how the cost of money and cost of goods interact with each other. we know that no one forward, he's going to push for lower rates as turkish inflation is expected to slow down, which is something expected because with all other factors contributing to turkey's inflation, how far he will go will depend on how the lira reacts. erdogan may have certain ideas about the economy, but after all, he's a pragmatist. he will look at how the lira reacts, how it is taking a toll on the rest of the economy, including inflation and unemployment. guy: he's going to look at today and take a very interesting conclusion away, maybe. thank you very much indeed, ant, aunt -- onur bloombergs turkish bureau chief. vonnie: taking up, our factor funds discussion. this is bloomberg. ♪ ♪ vonnie: live from new york, i'm vonnie quinn. guy: in london, i'm guy johnson. this is "bloomberg markets." let's turn our attention to factor investing. we are seeing it start to seep into the fixed income m

but with the decision by president erdogan to suddenly remove or hold management at the central bank,t has caused some volatility in the lira. it is possible that the lira might weaken to a level that it might be more difficult for the new governor to cut rates, as president erdogan would probably like him to do. guy: greece's center-right democracy leader has taken over as prime minister. that is after yesterday's election. it handed kyriakos mitsotakis a mandate to tackle the nation's chronic woes. >> i feel i have a strong mandate to deliver on my agenda, which is an agenda to grow the economy, to create more jobs, but also to make sure that the greek people feel safe again. maria: he will tell you, i want to grow this economy aggressively. he talks about 4% annual gdp growth. essentially, that is double the current rate. he wants to cut red tape. he wants to attract foreign money. but more crucially, he wants to slash taxes for corporations and households here in greece. that was his main election promise. do that, quite frankly, he needs fiscal space, fiscal leeway, and the only

men at the g-20, including saudi crown prince mbs and president xi and turkey president erdogan and russian president vladimir putin who he joked with about election interference. >> don't meddle in the election -- >> reporter: and, wolf, moments arg reporters were called into the oval office with president trump for a bill signing. this is an opportunity for the reporters to ask questions so we'll see if the president makes any news and of course we'll bring you the latest. wolf. >> we'll be getting that tape. we'll watch it closely. pamela, thank you very much. >>> that tape should come in fairly soon. joining us now, democratic congressman ro khanna of california, a member of the oversight and armed services committees. congressman, thank you for joining us. you served as co-chair of the bernie sanders 2020 campaign and sanders as you just saw in the poll has dropped four points. how do you explain why other progressive candidates right now are seeing a dramatic surge in their poll numbers? >> well, there is no doubt that kamala harris had a good night in the debate. and i give her credi

francine: the turkish lira weakened after president erdogan relieved the nation's central bank governorhe has reported that policymakers support his view that higher interest rates cause inflation. with this removal out of the blue, where does it leave the central bank and where does it leave the new person in charge? >> it leaves the central bank in a tough position, francine. the previous head was probably on the cusp of starting an easing cycle. but with the decision by president everyone -- resident erdogan topresident suddenly remove or hold management at the central bank, it has caused some volatility in the lira. it is possible that the lira might weaken to a level that it might be more difficult for the new governor to cut rates, as president erdogan would probably like him to do. center-right democracy leader has taken over as prime minister. that is after yesterday's election. it handed kyriakos mitsotakis a mandate to tackle the nation's chronic woes. >> i feel i have a strong mandate to deliver on my agenda, which is an agenda to grow the economy, to create more jobs, but al

erdogan is promising rate cuts. that will be interesting.will reduce inflation the single digits by the end of the year. can i asked you where we are in the political chatter? the us stumble mayor -- the rerun, is itr being overhyped by western media? think there is too much talk about erdogan losing control. hiscan talk about invincibility begin gone. there are influential members of the party that are defecting. you have to remember that erdogan is in power for another four years and in turkish politics, that is close to an eternity. nejra: thank you for joining us, benjamin harvey. ubs is still from with us. let us get a sense from you on emerging markets right now. said governmental growth has fizzled out. arend: going sideways. not getting better. stuck in between the simultaneous easing by global central banks and growth in the dollar being quite strong. it is not a convincing lay environment for emerging markets. so far, it seems to be helping at the margins the likes of turkey and other vulnerable once. what i think on the global sid

lira suffering after erdogan fired the nation's central bank governor erdogan has expressed frustration rate at 24% since last september to support the lira. peter, interesting you were starting to say in your notes that some economies, local currency debt you were drawn to because of your view on the dollar is the turkish lira in that camp >> turkey is certainly a part of these em funds and universe. i still think it's attractive. when you see a story like this it obviously worries you erdogan said lowest interest rates will lower the rate of inflation. he has been fighting his central bank for years now i'm optimistic on the rest of em turkey is still a problem. erdogan is a disaster for that country. until he changes there won't be a change until how that continue is run so, it is alarming when you see a president firing their central bank. >> in the short-term of course the istanbul election has increased the political risk because it's given more short-term issues for erdogan to deal with and of course the risk is serious unpredictability and this is a slight example of that which

warnsent erdogan policymakers to get on board th

erdogan isesident fully committed that lower rates will end up with lower inflation. find it very difficult the them not cutting rates now. -- difficult to see them not cutting rates now. manus: i want to get your perspective from the fixed income side of things. i look at the emerging-market bond yields, local debt yields on hitting the lowest in a living euros. in the broader em context, the fed was our saving grace, isn't it? those that rally in young debt -- does that rally in the end that pause post the jobs data? nick: it would be a buying opportunity. the fed, even if they have the lead to a that will stronger dollar" quickly back onto the table. so i think the market has been looking for any kind of real yield story, anywhere where there is a nice narrative behind it. i think that will change. that is perhaps one reason why they have not done more this morning because the real yields are still there. people short this stuff especially when you have the better markets -- nejra: i wonder whether and when the lira becomes a buying opportunity because of those rea

president erdogan saying that he hopes the u.s.se. 0e also says that the as-40 will be operative as soon as april of 2020. all caps of geopolitics. keep an eye on that. we are looking at the lira, pretty steady as of today as the bonds extended the rally. "bloomberg surveillance continues in the next hour. taylor riggs joins me out of new york. we will be talking to the chief finance officer of twitter, as a company reports second-quarter results. in the markets, it is a bit of a lopsided day. a lot of focus will be on boris johnson. the e.u. just moments ago saying no to borris johnson. that increases in no-deal brexit. risk. the scale of the challenge facing boris johnson was laid bare in the first hours of this morning when mr. junker said the uk's withdrawal deal is a what best they will get. we are also looking at treasuries on the back of gdp of the u.s., the fed next week, the boe is also next week. european stocks are mixed. treasuries are ever steady. . euro is the drifting lower a day after fluctuating in the wake of that

president erdogan has a different view of economics than many of us.eves that high rates contribute to high inflation. how much pressure is he going to put on the new central bank governor to deliver a series of rate cuts? -- rate cuts like this? >> president or to one -- president goethe -- gone --t goethe president erdogan thinks that if turkey lowers interest rates, inflation rates will fall. that's an unusual view on how the cost of money in the cost of goods interact with each other. how far he will go i think will depend on how the lira reacts. the president may have certain ideas about the economy, but he is a pragmatist, a pragmatic politician, and he will look at how the lira reacts, how it is taking a toll on the rest of the economy, including inflation and unemployment. >> germany's industrial crisis seems to be getting a little bit worse. manufacturing fell to its deepest slump in seven years as weakened abroad and water levels on the rhine river taking their toll. >> it shows the hopes that a rebound in europe, that weakness was over -- un

guy: at the same time, is president erdogan wrong? we will show you a chart that shows you the real yield. damian: this is the thing we get to. this points to a bigger divide within the party. what might be important to foreign creditors and might be important to the president erd ogan and turkey might be different things. despite you have real yields, if the currency does not cooperate they will not be able to ease policy. david: how to the markets react? off,n: equities have sold the curve inverts. the turkish are the most inverted of all the emerging markets. worse than places like nigeria or iraq. you would think foreign creditors would be concerned about the price action. david: thank you so much. let's go to maria tadeo in athens on the new greek prime minister. they are efficient. interesting because in the space of 24 hours greek politics have gone full circle. the new prime minister voted in. he is the new greek prime minister. we're expecting an imminent announcement and he was clear when i spoke yesterday in athens that he

bank governor no official reason was given for that particular dismissal, but erdogan has expressedh the central bank for keeping its benchmark rate at 24% since last september in order to support the lira, so central bank governors around the world coming under fire from their political leaders, not just here in the u.s. but in turkey as well >>> still on deck, the ipo rush rolls on one of the most anticipated offerings of the year making an unusual move ahead of its big debut. >>> plus, verizon, sprint, t mobile, at&t and now google? why silicon valley may be asking, can you hear me now? orwi ehae"s ck after this new align whole food probiotic. a blend of quality probiotics and fermented whole food botanicals, expertly curated to naturally support your gut health every day. go with align whole food blend. from the pros in digestive health. they have businesses to grow customers to care for lives to get home to they use stamps.com print discounted postage for any letter any package any time right from your computer all the amazing services of the post office only cheaper get our sp

i couldn't anticipate that president erdogan was going to sack the central bank governor it follows methe world, joumanna. >>> on another note, let's take a look at greece and what happened there over the weekend. greece's center right new democracy party stormed to a landslide victory in snap elections, unseeding alexis tsipras and his party. new democracy is on course for an outright majority in the greek environment. kyriakos mitsotakis will be sworn in later today as the new prime minister sylvia, it's not that long ago that we were all concerned about greece collapsing, exiting the euro, the whole euro project was really in question they have come a really long way. now we have the center right party in power what can we expect from mr. mitsotakis >> reporter: it's indeed a new chapter in the greek history we have mainstream party returning to power after all we saw back in 2015 a lot of protests hearings against austerity. with very confrontational tone against the eu and the international creditors and now we see the conservative party, new democracy, getting elected and now maj

and respect of the principles of good neighbourly relations, and i communicated that to president erdogan, including the turkish illegal activity within the separate ——cypriot exclusive economic zone and i do expect europe as a whole to react to this, because this is a problem affecting the relationship between europe and turkey. 0n the migration side, this is a deal that has more or less worked in the interest of greece and europe. i would be looking at expediting asylum procedures which currently take ages in greece, and once a final asylum decision is made, if someone is not granted asylum, he needs to be returned to turkey according to the agreement. and i believe you have also had a phone call congratulating you from borisjohnson, the british mp? i communicated with borisjohnson, who i happened to know, we spent some time together on the greek islands. we exchanged text messages. i spoke to prime minister may, she called me and officially congratulated me. but of course it is not my point to make any public comment on who will replace the prime minister. greece is obviously part of t

and, honestly, it's not really erdogan's fault. >> your question about president xi.leader. he's a brilliant man. you know better than i he's probably considered to be one of the great leaders in 200 years in china. and we just have a very -- he's strong. he's tough. but he's good. we have a very good relationship. >> i mean, that's a buffet of admiration, max. is this actually winning any points for diplomacy or the u.s.' interests at all? >> no, this is just making the united states look weak and f feckless. i mean, if donald trump had been president in the 1980s, he would not have said, mr. cardboagorba this wall, he would say i really admire it, i would love to bring it to our southern border. there is a big difference between what previous presidents and trump have done. previous presidents have certainly dealt with dictators. you don't have a choice in that job. you have to deal with unelected leaders, but with trump he goes much, much further because he is actually praising these dictators for being so strong, ie, for being so repressive. he is praising kim jon

turkey's president erdogan has fired the central bank governor checked in cairo he's been frequently criticized by the president for not cutting interest rates in response to turkey's economic downturn. has been replaced by his deputy. have been held for the 14 russian seamen who died in a fire on one of the navy's research submersibles the men were buried at a cemetery in st petersburg details of monday's blaze are still scarce the defense ministry said the sailors were killed by toxic fumes from the fire. a team of swiss scientists says planting one trillion trees would be enough to absorb the c o 2 emissions that are fueling the world's climate crisis the trees would cover a landmass the size of the united states but they say it's no substitute for using less nonrenewable energy sources. but if venezuela's president nicolas maduro and opposition leader have backed rival visions for the country on its independence day the 2 held separate rallies in the capital caracas earlier $22.00 political prisoners were released but hundreds remain in custody has ruled out holding talks with pr

>> reporter: the end game seems to be, if you listen to president erdogan, not only receiving delivery of this missile system but co-producing it. this flies in the face of u.s. law and that comes into play with the fact that russia -- turkey, rather, wants to buy or is buying over 100 of the united states advanced f-35 fighter jets and u.s. law says that if you -- that any entity that's dealing with the russian military needs to face sanctions. that's one part of the puzzle. another part of the puzzle is if turkey has both these s-400 missile systems and the united states most advanced fighter jet, then it's essentially got a package here where it can figure out what it takes to defeat the f-35. turkey has that knowledge, russia potentially has that knowledge. at a strategic military level this is bad. the turkish today have taken their 11th shipment of these components. the turkish are saying this all should be completed by april next year. president trump gave president erdogan the impression at the g-20 recently that there would be no sanctions placed on turkey because of its purch

let's look at the story in the times which looks at president bird —— erdogan of turkey, who has said backs the one child policy. this is interesting, because in the past some of these policies have not been back. they have said that some of these policies have been a great embarrassment for humanity, and have talked about genocide with regard to china as well. this is about internment of chinese muslims, china says they are vocational centres where people learn languages and courses. in the west there is a lot of criticism. if anyone wants to see john sudworth, our correspondent in china, he was given exclusive access to some of these camps but he was closely monitored by chinese authorities. it was a fascinating look at what was going on there. lets have a look at, did you see her match last night? i didn't watch any of its. you just cannot believe this 15—year—old girl is doing so well. she won in straight sets, very quickly. the crowd was behind her, they see it as a fairytale story, they see it as a fairytale story, they love it. you have to feel sorry for the opposition because

we've heard president erdogan saying president trump has the authority to waive sanctions or delay them. and certainly this latest announcement from the president hasn't deterred turkey. just a short time ago the 14th cargo plane from russia landed in ankara, delivering more parts of the s-400. >> thank you so much. >>> it's a race against the clock to raise the debt ceiling ahead of a looming financial crisis. house speaker nancy pelosi and treasury secretary steven mnuchin plan to speak again today to negotiate both the budget and a debt deal. the u.s. reached its $22 trillion limit on borrowing back in march. since then the government has been shifting money around to pay the bills. congress and the president need to reach a deal before the government runs out of money in september. talks have been productive, but pelosi told reporters she is not doing a short-term deal. mnuchin says he wants a comprehensive deal, but if one is not reached requested a clean bill to raise the debt ceiling for as long as possible. that would allow the government to keep running while a budget agreement

i called president erdogan and i said, listen, he is an innocent man, he is a pastor, a religious , he is notnot a spy the things they said. we had a couple conversations and i was able to get him back, along with many other people i ble to get back. the press does not want to write about it. i guess we have 21 back. i got anyone back. either, unlike the 1.8 billion that was paid by the obama administration to get hostages back. i don't pay. once you pay, it doesn't work out. we have a situation where turkey is very good with us, very good. we are now telling turkey that because you have really been forced to buy another missile system, we are not going to sell you the f-35 fighter jets. it is a tough situation that they are in, and it's a tough situation that we have been placed in, the united states. weh all of that being said, are working through it, we will see what happens, but it is not fair. i don't stick up for countries, i don't stick up for turkey, other than i have had a good relationship with president erdogan. he wanted to buy our patriot missile. we would not sell it. he

marty: does anybody have a clue what erdogan's game is here? trying to get closer or farther away from nato and the united states? bill: what we hear is they are still committed to nato, but this kind of action lies in the face of that. i think we are a time when a lot of countries are questioning whether some of their historical alliances are as valuable as they were in the past. erdoganwe have seen cozying up quite a bit more to russia and vladimir putin in particular. facing a lothe is of domestic challenges, so on some level, he may feel like this helps him domestically or within his own party, particularly after he had that pretty devastating loss in the istanbul mayors race. it is hard to know what is going right now,an's brain but this has been talked about for over a year. the u.s. has been trying to get them to rethink this approach and it has not worked. craig: how much blowback is turkey getting from nato? this is supposed to be a strategic defense alliance. if it looks like he is cozying up to russia, the country that we are all pro

now, the lira weaker today after turkish president erdogan unexpectedly fired his central bank chief president erdogan's dismissal of the central bank governor due to a disagreement over interest rates has raised a number of questions over the central bank's independence. over the past year, erdogan has been calling on the central bank to lower rates, but the central bank in turkey has been pushing back, pointing to surging inflation as to why interest rates and turkey need to stay relatively high. the move comes weeks ahead of turkey's monetary policy meeting, where economists now expect a rate cut. in response, the turkish lira has been moving lower. back to you. >> seema mody, thank you >>> the other big thing to watch with turkey is the fact you're getting comments out of both turkey's erdogan and russia's putin saying delivery of a missile defense system is moving forward. if that happens, you could see the u.s. slapping sanctions on turkey a lot of developments to keep an eye on in terms of that country. >>> shanghai composite down more than 2%, meantime, today, posting its wor

because under president erdogan, that relationship has become strained. purchased a defense system from russia and because of that the delivery of the f-35 fighter jet from the u.s. has been suspended. turkey, of course, is a nato allies. but should it be? should that relationship be evaluated, should turkey still be a nato ally? >> we have a military base in turkey. they are a nato ally. the chairman and i met with the foreign minister of turkey and the ambassador and said, we let you into nato because of the soviet union threat to turkey. it makes no sense for you to purchase s-400, you know, capabilities from russia that actually are in direct contradiction to the f-35. so we passed a resolution in the house condemning turkey and of fering them the patriot missiles as opposed to thes-400 which is russian and we are holding up the f-35 sales until they change their behavior. they claim they have purchased these, these, this missile system. they still have time to stop this decision. the problem, michelle, they will be incorrect contravention to the u.s.

president erdogan downplaying these risks. what can we expect in real terms?'re certainly going to see sanctions announced the end of this week. the turks are making a bet trump is going to carry through on a promise to be lenient. it's an open question about whether he can do that. the law is quite clear sanctions will be imposed. there's a menu of 12 different sanctions. he has to pick five of them. the severity can range from light to a crippling turkey's economy. anna: the central bank governor was removed, did have short-term impact on the government. how concern does it play more broadly? this comes into u.s. sessions. ben: turkish markets have been resilient. he fired the central bank governor. he's been clear about the reasons. he wants interest rates lower. eu,ar as a you, they are -- they are threatening sanctions. it's for drilling off. we've got three major challenges. u.s. sanctions, he you sanctions, and central bank governor cutting sanctions. anna: thank you very much. metcalf,s, michael global head of strategy. your thoughts on turkey and why

president erdogan appealed to him earlier this month. the trump white house's armoury against other countries, china and iran. so they need to be tough with turkey to maintain that and if sanctions are applied, it could really hurt the turkish economy at a time when turkey is facing huge economic problems. and president erdogan is not a man who likes to give ground when he feels pressure from outside. so a real rift could develop between turkey and the us, turkey and nato. turkey is nato's hugely important member in its southern flank. and so once you start having tensions between the military alliance and ankara, it could have serious consequences. a man is being questioned by detectives investigating the killing of a heavily pregnant woman and her baby in south london. the 25—year—old was arrested on suspicion of murder yesterday. kelly mary fauvrelle, who was 26, was stabbed at her house in thornton heath last month. her son, who was delivered by paramedics after the attack, died a few days later. the mayor of new orleans has warned t

the turkish lira plunges after president erdogan removes the central bank governor in a shock move.reaches agreed limits on uranium enrichment accusing europe of failing to live up to the terms of the 2015 nuclear deal. what happens now? a senior saudi prince tells bloomberg that washington's long-awaited vision for the middle east peace will fail unless it involves the palestinian state with its capital in jerusalem.

. >>> finally, emerging market investors waking up to a tumbling lira after president erdogan unexpectedlys governor for not lowering interest rates. the decision comes weeks before turkey's next monetary policy meeting and is yet another sign of erdogan's intention to undermine central banks. the timing is notable. it comes as turkey is in the process of receiving a major russian defense system that could trigger a review by the national security council and u.s. treasury over possible sanctions. all of this uncertainty weighing on the currency. it's now down about 25% against the dollar over the past year. guys, sending it back to you >> incredible. thanks, seema. >>> let's get to sue herrera and get a news update as well. hi, sue. >> hello, carl hello, everyone. here's what's happening at this hour the state department launching an advisory commission on human rights secretary of state mike pompeo making the formal announcement this morning in washington >> the commission is composed of human rights experts, philosophers and activists, republicans, democrats, and independents that very

erdogan: turkey under has become increasingly hostile against israel. the u.s.srael enjoy a very special relationship. it is a mutually beneficial relationship. israel is the u.s.' only ally in the middle east that shows the u.s.'s values. but our relationship is coming under increased scrutiny and open hostility from certain members of congress. as we heard from vice president mike pence earlier today, there is anti-semitism in the halls of congress. one particular democratic member of congress has been very hostile against israel, has made comments that have been deemed anti-semitic, to put it mildly, and made statements that many see as being openly in support of the palestinian terrorist group hamas. you are the ranking member on the foreign affairs committee. what is being done to address this, and to that member still be on the committee? [applause] michelle: i think we can take that applause as no, she should not. rep. mccaul: you know, ultimately that is a decision for speaker pelosi and chairman engel. me,as for me -- but as for as for me, i think omar