its high and that's i can't tell you it's an option but i could see the european union the european central bank and other european institution to look very carefully if someone else other than european institutions and the i.m.f. of course would it should could help italy if need be now the european central bank is putting extra pressure on italy up until recently it was the only net buyer of italian debt and is now dialing back its bond purchasing program. yeah that's one of the big risks for italy that's one of the unsolved problems and that could lead us if the situation gets more dramatically into another greek plus or a gleek. ten times bigger greek situation of course now with the government at the helm that insists on more spending despite this mountain of debt is sitting you know how much of a risk how big is the risk all of this behavior poses a threat to the rest of europe there is a risk it's an increasing risk with good new government because it's the left and right wing and populistic and it doesn't have a solid economic investment strategy so the risk is there but the european ins

of thee every governor euro area central bank would be able to serve as president of the european central much, wenk you very appreciate your time. olli rehn, governor, bank of finland joining us here at the bank of finland in helsinki. guy: fantastic interview, fantastic answers given by olli rehn, governor, bank of finland, a member of the ecb learning council. matt miller in finland. we will also bring you another exclusive interview bloomberg has conducted over the last four hours with the president of the united states, donald trump. it was in the oval office yesterday with john mickelthwait. up next we will talk about coca-cola getting into the coffee business. whitbread stock is soaring high this morning. this is bloomberg. ♪ matt: welcome back to "bloomberg markets: european open." we are 50 minutes into the trading day. donald trump has hit out again that china, saying the second largest economy would not last in a trade dispute. the president spoke with bloomberg's editor in chief, john mickelthwait, saying his administration was re-examining how to determine if china is manipul

one of the things that happen there was that european central bank and any central bank may choices.e money created to help weaker countries or stronger countries. this is not a political thing. it was a monetary decision and a money decision as well to do things to help create german companies or french companies or the stronger part of europe to begin with. the argument was that there are better bets. five and half a trillion dollars worth of money was greeted by the european central bank to help your and chose not to help greece. has his ongoing thing with italy. and actually work with ben burnett key on a similar policy which still exists in europe. but by making the choice of providing subsidies for the banks. in the countries and so forth evolved. that is contrary money in the is deciding to play favorites. which has other issues. from that same point of that and inequality. it manifested in the brexit vote. because one of the things that happens historically is that when ever there whenever there is economic anxiety amongst a group of people or countries or people that can loo

its high and that's i can't tell you it's an option but i could see the european union the european central bank and other european institutions to look very carefully if someone else other than european institutions and the i.m.f. of course would it should and could help italy if need be now the european central bank is putting extra pressure on italy up until recently it was the only net buyer of italian debt and is now dialing back its bond purchasing program. that's one of the big risks for italy that's one of the unsolved problems and that could lead us if the situation gets more dramatically into another greek plus or. ten times bigger greek situation of course now with the government at the helm that insists on more spending despite this mountain of debt is sitting out how much of a risk how big is the risk all of this behavior poses a threat to the rest of europe. there is a risk it's an increasing risk with good new government because it's the left and right wing and populistic and it doesn't have a solid economic investment strategy so the risk is there but the european institutions a

and there are now reports the european central bank is worried about the impact it will have on bankseurozone. so they'll be paying close attention to the finance minister when he lays out a new economic model in the next few hours. and this tells you just what's at stake. over the past year the lira has sunk more than 40% against the us dollar. the latest nosedive comes after last week's us sanctions. turkey sold the us more than $9 billion of goods last year, but there are concern about turkish companies maintaining their preferential access to the world's biggest economy. that's because washington says it's under review, after the two countries imposed tariffs on each other. those geopolitical tensions sharpened the focus on president erdogan‘s tightening grip on power and its impact on the economy. it's since eased expectations by cutting its economic growth target to less than 4%. growing debt is a huge problem. a lot of that debt is held by private companies, amounting to more than $2110 billion. and given the majority is held in us dollars, the weak lira makes it more expensive

but one of the things that happened there is the european central bank and any central bank made choices. they made choices to use the money they were creating to he help. this isn't a political thing, it is a monetary decision and a money decision as well to do things to help german companies were french companies. the argument is there is no better bet. $5.5 trillion worth of money was created by the european central bank to help europe. .. >> because one of the things that happened and historical is that whenever there is economic anxiety amongst a group of people or countries or people to look at jobs attentional or look across the border to see problems they want to vote for whatever doesn't exist. they want to vote out where they are. the governments involved aren't listening to nobody blames central bank and so that weekend people are demonstrating in the streets because it was the lowest in 17 years relative to the cost of things with the financial crisis. no one is marching in front of the central bank. but nobody was doing that because you don't think that we will march. not ou

basically he has this criticism not only with the international monetary fund but also with the european central bank is a european commission and they are indeed right we are exporting much more than we importing which necessitates that the rest of the world does exactly the opposite then porting much more than they exporting and they basically finance is via debt so they increase their debts so we're living off our economic model is built on others increasing their debts and this is clearly not sustainable and this was also one like that don't we we like that because it's not us who make the debts it's the others but at some point they will have difficulties and we've reached this point already this was a financial crisis of two thousand and nine and two thousand and ten the europe is the euro crisis. so this is not only some abstract danger that lurks in the future we've already been at that point if we only come out of this crisis because of very low interest rates. management more government that bothers but it is likely that the situation might repeat in the future. is germany really to blame a

the european central bank is examining exposure of european banks to turkey, the drop in lira comings high-level meetings in washington and turkey officials over detained american pastor ended the week with no progress, the trouble in turkey weighing on u.s. stock market futures this morning, there's talk about a possible bailout from imf, the dow down 98, s&p down 12 and a half. lauren: what would this do to gain that is we have seen to u.s. on the week, well, russia is feeling the pain from economic sanctions that the u.s. imposed this week, the currency, falling against the u.s. dollar to its lowest level in two years, and as we noted, stocks in russia and europe also plunging, the sanctions stem from a march nerve-agent attack that was used in uk against former russian spy and daughter, the u.s. and great britain are holding russia responsible for the attack. >> sanctions is a way that we can try to encourage better behavior on the part of government, i'm speaking in a baud-base sense but that's one way we can encourage better behavior. lauren: moscow has repeatedly denied involv

bailout programs that means that athens is no longer dependent on aid from the european union european central bank and the international monetary fund the loans amounted to two hundred sixty billion euro. finally no more aid packages and no funding requirements but the last eight years have been tough for greece and brought dress to cost cutting measures many greeks lost their jobs and their homes on average income has fallen by a third but taxes remain high and now for most people it will be a long time before the situation improves and some are very skeptical about the future like this silversmith gave human the personally for me in the coming years i don't see any hope everything looks bleak to me. you know all of the crisis brought me and thousands of people in my position to a low point in business my company closed but in a dignified way without owing money to the state or pension funds and we could open in this cafeteria and many market. he hopes he'll soon go in a foothold again a lot of people try to fight their way through like that it is a got to go you can be my hopes on something bett

fears over the currency saying if they have their dollars, we have our people and our god the european central bankrned about turkish exposure at some of the continents banks here according to "the financial times. the paper reports that the central bank is examining links between several european lenders and ankara, including bbva, unicredit and bnp paribas. the report did say the ecb did not view the situation as critical cnbc reached out to bbva for comment and they pointed to comments daught s made by the c said they are aware of the situation. >>> tesla's board could ask elon musk to recuse himself as they explore his plan to take the company private. board members will meet with financial advisers next week to seek more information about musk's proposal. earlier this week he announced on twitter his plan to take the carmaker private in a deal that would be worth as much as $72 billion, however mr. musk did not clarify if tesla itself has committed financing for this proposed transaction shares were higher in aft after-hours trading yesterday after cnbc's report. >> that multi, multimillion do

of its three bailout programs athens is no longer dependent on aid from the european union european central bank and international monetary fund the loans amounted to two hundred six. in europe's. finally no more aid packages and no more funding requirements but the last eight years have been tough for greece and brought drastic cost cutting measures many greeks lost their jobs and their homes income has fallen by a third on average the taxes however remain time for most people it will be a long time before the situation improves and some people don't even believe it's possible like this silversmith. something i've never personally for me in the coming years i don't see any hope everything looks bleak to me. because he sees the middle of the greek crisis brought down me and thousands of people in my position women weren't interested in buying our clothes anymore and as a result my manufacturing company closed we started this combined cafeteria and many market he hopes he'll soon gain a foothold again many people in greece are trying to fight their way through. it because like i can my hopes on s

the monetary policy off the fat as a complete no go institutions like the fed also like the european central bank here in frankfurt need to be completely independent and it is even more surprising because it was donald trump himself who appointed germany powell for the position of fed chairman his predecessor janet yellen wanted to continue to work in this position but did not extend her contract you know it's another unwritten law commenting on the currency as a u.s. president but just how we could dollar does trump actually want. well for the moment and he got what you want at the dollar went down to a true week a low actually the euro gain strength that is right now is the level of our one fifteen dollars usually when we have to scenario shares here at the docks go down this way but not today analysts don't believe that this trying to set to continue and even though trump believes that the we dollar is better for the u.s. economy also exports in the united states are warning that this could have a rather negative effect for the economy and the boom that we have seen lately could be stopped wit

today for the past eight years athens had been dependent on aid from the european union the european central bank and the international monetary fund the loans given to greece amounted to two hundred sixty billion euros in return greece had to implement painful austerity measures and reforms now the time has come for greece to finance itself independently on the capital markets but how realistic is that. finally back on their feet financially no more cash injections or bailout funds that's the greek government goal after all the economy has been growing since last year mainly due to greek exports gaining ground last year greece exported goods worth twenty eight point nine billion euros exports have risen by thirty five and a half percent since two thousand and ten but the lion's share is in refined petroleum products a worrying concentration experts say greece itself has no domestic oil reserves it only process is imports and then exports them small businesses are also important to the greek economy but they have the make any money many banks are still sitting on bad loans and investors still don

programs for the past eighty years athens have been dependent on aid from the european union the european central bank and the international monetary fund the loans given to greece amounted to two hundred sixty billion euros in return greece had to implement painful austerity measures and reforms and now the time has come for greece to finance itself independently on the capital markets again but how realistic is that. finally back on their feet financially no more cash injections or bailout funds that's the greek government goal after all the economy has been growing since last year mainly due to greek exports big gaining ground last year greece exported goods worth twenty eight point nine billion euros exports have risen by thirty five and a half percent since two thousand and ten but the lion's share is in refined petroleum products a worrying concentration experts say greece itself has no domestic oil reserves it only process is imports and then exports them small businesses are also important to the greek economy but they hardly make any money many banks are still sitting on bad loans and investo

three hundred redditors including the european central bank by your imagination national monitoring bond that's close to a hundred and 30% sentence he he he kind of sound that i guess. i've had or more exchanging restaurant. maryland alleged told me earlier earlier recently he'll deal he's on that debt help help but not not [inaudible] problems [inaudible] we don't. and and limits masterfully for me please please essential then they can get. them. what? do you think you can come in and out in a situation where [inaudible] there. well yes yes was an innocent is unison's success rate a lot on adventure story [inaudible] they managed. the has house financial shermans their stores. what to expect to a a docto? each other cost or story. eighty one one is also hold your nose usher should enjoy his. as for the for the money. years ago to go. with just generally goes to show me something else [inaudible] read it [inaudible] well. it's just last. because when i when i don't. want to talk again. side. not. greecece me in me. from the hardline and had a lot about. and detected s ss three hundred bi

forth but all in so that we've run by in our money terry policy by and in the pendent central bank and also the european central bank have insisted on that is independent north central bank that cannot act independently can pursue rational and reasonable monetary policies and if everyone doesn't understand this. it may be almost hopeless to head turkey but if he and that should decide to see the light we might be able of course to help them because we have a vital interest in a stable turkey for all kinds of strategic economic reasons but also because turkey due to the three million turks in germany is part of our domestic policy scene and what are president everyone's options right now. well there are several options i mean the first obvious right thing to do would be to do what our other guest was suggesting to provide the central bank with the independence that it needs to fulfill its mandate but if out on continues with his in insistence to not allow this then the other options are one one of them of course going to the i.m.f. . there are many observers who are betting that this will end up being th

financial aid totaling nearly three hundred billion euros from the european commission the european central bank and the international monetary fund in greece tentative plans to officially celebrate the bailouts and were cancelled e.u. commissioner of economic affairs pier of moscow viki hailed the bailouts and. the fact is that greece is transformative reforms have laid the foundations for a sustainable recovery putting in place the fundamental conditions need for sustained growth for job creation and for sound public finances indeed used to come this was the main goal of the program that and to date we all knew that greece concludes its program with a public debt level that these the highest of any member state. greek prime minister alexis tsipras compared the crisis and aftermath to homer's odyssey a national address an international drug. said our country is regaining its right to define its own fortunes and futures like a normal european country without having policies forced on it by foreign officials with no more blackmail no more sacrifices for our people. and in that regard we take a lo

the european central bank and th european commission, greece agreed to drastically cut spendingme and imp economic reforms. the greek economy is three quarters of the size itas in 2007, and the deep cuts to public spending are set to continue. the bailout exit means the country can once again borrow money at market rates. deal activity added to e optimism on wall street today. pency agreed to buy soda stream r more than $3 million. the ceo says gearing away from sugary drinks is important for the company's future. >>> tyson foods said it would buy keystone foods for more than $2 billion. the acquisition is part of tyson's strategy tore ie its product offerings and expand globally. keystone foods is a supplier of chicken, beef ando fish the major fast food restaurant chains as well as convenience stores. shares of tyson rose more than 1%. investors will be focused on tha fe reserve this week, and just today, the president of the atlanta f said that the economy is strong and ready to move on from monetary stimulus 37 rapheal added he is 12iking wi r int herest rate increase this year, a

receive help from the european union for example by a coordinated central bank action from the european central bank and there's a good reasons because of the debt crisis is also linked with the european banks in the south spanish banks for example are heavily big creditors eighty billion euros italian banks and also french banks so i could go on to the question straight i expect that the problem of the crisis in turkey will not somehow mitigated if there is no support coming from outside the country. time to update you on other business stories south korea is set to impose a driving ban on twenty thousand recalled vehicles of german luxury brand b.m.w. authorities have urged the owners of effective models to get a safety check while warning that they pose a danger to the public there have been more than thirty cases of car fires which are thought to have been caused by engine problems b.m.w. is the second most popular foreign car brand after fellow german mercedes bentz no injuries have been reported so far as a result of the car fires. found the austrian capital of vienna has been ran

vonnie: let's get focused on central banks. the european simple advice -- single advisory measure may be run by a woman. the irish central bank deputy governor and the vice governor at portugal. let's bring in paul gordon, bloomberg's european west central bank editor. there is a push at the ecb from our gender equality although the director general happens to be a woman. paul: of communications, that is right. diversity and the single supervisory mechanism actually gets to a point or nominate a candidate itself, and they tended to appoint men. the key here is to go for a woman, that is likely to be the case. we just heard that sharon donna reed has put her name in the -- there are reed others there as well. romaine: when we take into account the draghi will not be there forever, doesn't this selection play to the issue of who or what country will be representing the ecb? does, because euro area companies -- countries like to divide these jobs. if you get the ssm you are probably not in the running for the presidency. ireland is a good choi

. >> making comparisons with the european central bank in 2008, jean-claude trichet, one of the lasts he did was raise rates. came in a few months later and the global financial crisis was raging and had to cut them. some people in the market say this could be that kind of mistake because you have that brexit storm brewing. that is probably overstated. they have only made a very modest move. it is the highest since 2009, but only three quarters of a percentage point. if the situation changes, it does not take that much for them to reverse course. shery: thank you so much. you can read stephanie's interview with mark carney in bloomberg markets magazine. take a look at what tesla is doing right now. it continues to rise. over two days, up 15%. the electric car maker has done pretty well. their earnings were pretty well received, especially on the cash and print, better guidance, a potentially apologetic mosque -- apologetic musk. know, with all of the ongoing issues in the company, tesla has become one of those favorite targets for shorts, including big names, such as jim chanos and d

pushing for the top spot of the european commission to be filled with a german, and not the european central banksure there are some bulls happy with the situation. matt hornbach, great to have you with us. subadra rajappa and rob waldner. i want to get a market check for you. let's bring that up for you. 10 year yields looking like this, on the week down by four basis points. two-year grinding higher by a single basis point. coming up, a fresh china data on the global trade war. this is bloomberg. ♪ ♪ jonathan: i am jonathan ferro. this is "bloomberg real yield." i want to head into the final stretch to get you up to speed on what's coming up through the rest of the week. there will be trade data from the united states as we get insight into how the tariffs between china and the united states might be affecting the numbers. u.s. trade data coming on tuesday. we get some u.s. gdp on wednesday. look out for that as well, and some housing and personal spending data. the u.s. personal income data dropping on thursday. i want to get to a debate that's happened in the fixed income market throughout 20

basically he says this criticism not only with international monetary fund but also with the european central bank is the european commission and they are indeed right we are exporting much more than we importing which necessitates that the rest of the world does exactly the opposite them putting much more than they're exporting and they basically finance this via debt so they increase their debts so we're living off our economic model is built on others increasing their debts and this is clearly not sustainable and this was also one like that don't we we like that because it's not us who make the debts it's the other. but at some point they will have difficulties and we reached this point already this was the financial crisis of two thousand and nine and two thousand and ten the you look at the euro crisis. so this is not only some abstract danger that lurks in the future we've already been at that point if we only come out of this crisis because of very low interest rates. management more government that bothers but it is likely that the situation might repeat in the future. is germany really to

becoming more and more unlikely that those loans will really be paid back and that is why the european central bank which is the major supervisor of the european banking system is taking a very close look at this and is on high alert. current pain the worst case scenario for the markets. well the worst case scenario as it was explained to me by traders here is. controls of capital flows which might be limited by the turkish government when the situation or if the situation escalates further further capital controls and no corporation of the turkish government with the international monetary fund the i.m.f. a look in the past there has been other occasions where we saw boom and bust situations in the turkish economy and at those times the most recent one happened around the year two thousand the government. cooperated with the international monetary fund with. the president added and his rather patry arctic nationalist stance it's of course difficult to imagine that he will cooperate with the i.m.f. . in frankfurt during joins in istanbul thank you both very much. pilots of europe's biggest budget a

and so forth but also that me very run by in our monetary policy by an independent central bank and also the european central bank has the insisted on that is independent no central bank that cannot act independently can pursue rational and reasonable monetary policies and if everyone doesn't understand this it may be almost hopeless to help turkey but if he should decide to.

becoming more and more unlikely that those loans will really be paid back and that is why the european central bank which is the major supervisor of the european banking system is taking a very close look at this and is on high alert all right let's get the view now from turkey correspondent joining jones reporting for us in istanbul during turkey's foreign minister has said further pressure will only hurt bilateral ties he's about retaliation but how much worse can relations get. well the potential is to get a lot worse currently u.s. forces are working with a syrian kurdish militia just across turkey's border so if you consider a terrorist organization and if they so wish they could put a lot of pressure on those u.s. forces and the kurdish militia they're working with that would ratchet up tensions further on top of that washington is looking for ancora to enforce its new sanctions against iran has refused to do so given the current climate is unlikely to change that stance that again puts the two nato allies on a collision course potentially for a lot more difficult times ahead. turkish currenc

that means that athens is no longer dependent on aid from the european union, european central bank, and the international monetary fund. the loans amounted to 260 million euros. reporter: finally, no more aid packages and no funding requirements. but the last eight years have been tough greece, and brought drastic cost-cutting measures. many greeks lost their jobs and their homes. on average, income has fallen by a third, but taxes remain high. for most people, it will be a long time before the situation improveses, and somome are very skeptical about the future, like this silversmith. >> personally, for me, in the coming years, i do not see any hope. everything looks bleak to me. >> the crisis brought me and thousands of people in my position to a low point in business. my company closed, but in a dignified way, without owing money to the state or pension funds. and we can open this cafeteria and many market. -- minimarket. reporter: he hopes he can soon gain a foothold again. many people try to fight their way through like that every of -- like that. >> even ifif we leave the bail

i think you're spot on there the european central bank is printing used to print eighty billion euros per month just propping up a gigantic bubble happening right now it doesn't do that anymore it just prints sixty billion euros per month in the us federal reserve was printing trillions of dollars inflating the money supply we know how this ends once a government starts printing money to pay off its own debt the story doesn't have a happy ending anymore it just doesn't history is brutal on this point so cryptocurrency doesn't really need to replace the us dollar replace the euro it just needs to survive while those behemoths collapse under their own weight and that. when that happens it's going to go fast so will they widespread use of cryptic currency while promising a new level of liberty actually discriminate older generations on many won't be easy for older folks to get used to this complicated their usual stuff right well it does advantage stand it isn't it is complicated it is too complicated it is it is not usable enough it is not usable enough at all and i agree that this has

policymakers in regulators abroad are increasingly concerned the financial times reports that the european central bank the e.c.b. is specifically concerned that european banks may have collateral exposure in turkey while the e.c.b. staff operating the single supervisory mechanism which looks out for such risks a turkey is not yet in crisis they clearly signal that investors should take a careful second or even third look at their turkish portfolio carson brad ski chief economist at i n g to characterize the current risk the european markets are still extremely nervous and we saw that via the euro exchange rate to drop for there will be no one fourteen this morning so therefore you really can see there is nervousness there is uncertainty and and investors always associate europe closely with turkey. and the turkish lira fell sharply again today the turkish currency is down forty five percent this year along. and checking in on the u.s. economy new data shows inflation is now at the highest level since two thousand and eight there was a two point nine percent year over year increase in c.p.i. that's the

central bank has not raised rates leading some to question its commitment to tackling the leroy's tumbling value and the country's economic woes could have ripple effects beyond turkey to the european central bank is concerned about e.u. banks being exposed to turkish debt spanish banks are the most vulnerable having lent a total of eighty billion dollars to turkish borrowers and turkish companies are concerned they won't be able to meet their debt commitments to foreign investors on monday new higher tariffs on turkish steel and aluminum imports to the u.s. went into effect they could deal a devastating blow to the economy investors and now seriously questioning whether the country can free itself from what is turning into a major crisis. there's of course doesn't sound that well let's bring in our financial correspondent in frankfurt all of it bad has been following the story for us only it's good to see you well european markets opened in the red this morning you told us about it and it seems like it's not getting any better. that's true and when you look at some banking shares it's getting worse not all are really losing heavily but if you look at the first five losers in the e

policymakers in regulators abroad are increasingly concerned the financial times reports that the european central bank the e.c.b. is specifically concerned that european banks may have collateral exposure in turkey while the e.c.b. staff operating the single supervisory mechanism which looks out for such risks a turkey is not yet in crisis they clearly signal that investors should take a careful second or even third look at their turkish portfolio carson brad ski chief economist at i n g characterize the current risk the european markets are still extremely nervous and we saw that the of the euro exchange rate dropped for there will be no one fourteen this morning so therefore it really can see there is nervousness there is uncertainty and and investors always associate europe closely with turkey. and the turkish lira fell sharply again today the turkish currency is down forty five percent this year along. and checking in on the u.s. economy new data shows inflation is now at the highest level since two thousand and eight there was a two point nine percent year over year increase in c.p.i. that's the

still go on double digits more good news inflation is a steady two percent exactly where the european central bank once said so that means by the end of the year it's likely to roll back its stimulus for the economy all brits reporting from the frankfurt star can change paul thinking. in talks over an updated free trade agreement for north america canada's trade minister said that there were risks to all if no agreement could be reached with friday's deadline looming the country's foreign minister chris you're afraid. said the talks were constructive but it's believed these sticking points involve subsidies to canadian dairy farmers and rules on automotive content mexico already backed a preliminary deal on monday. one of the biggest trade shows for consumer electronics and home appliances has opened here in berlin and there seems to be something for every tech fan at this annual fair and if the into the patient is keeping you awake at night there's something for you as well. we're going to see problems this is effect might have the answer push on some headphones and a sleek mask and you can be li