i'm francine lacqua in paris. in london. i've been speaking to the country's central bank governor. we've been talking about normalizing monetary policy. he does not think european growth has picked. let's get to the bloomberg first word news. taylor: president trump has switched policy and ordered the commerce department to help phone maker zte stay afloat in the united states. weeks after banning the company from buying american technology, he tweeted that he and president xi jinping are working together to help the chinese telecoms company get back in business fast. it is a major about turn for trump, who has accused china of stealing american jobs and technology. bps ceo has said the u.s. withdrawal from the iran nuclear accord could cut oil supply by one million barrels a day. bob dudley made the comment in an interview with bloomberg. >> what we've seen is a withdrawal from the agreement which seems to be the beginning of a negotiation of some kind. it could lead to a million barrels a day off the market. th

tom: all this up bloomberg say francineation to lacqua. francine: i'm going to tear up.ink all the team because we do a wonderful job. tom, i wish you were here. next time we go to rome and we have gucci and italian food. tom: we could do that, but it's wonderful to see you in the order of the stella artois. we are glad that you did. congratulations from all of us. data check right now -- what are they talking about? futures negative two. dow futures soft as well with the euro under 1.20. which seriously shows the dynamics in emerging markets with the turkisg lira -- the turkish lira extraordinary. we are thrilled that jones will help us out with professor feldstein as well. francine: choking up. no, i'm kidding. stocks are little bit mixed and the focus is on trade talks and the jobs number as well. getting a little bit of breaking news actually for one stock in hong kong. when novo will be removed from the hong kong hang seng index. that is because of valuation going down. what else i'm looking at overall is financials falling after some disappointing earnings from bnp

i am francine lacqua.re's nothing like coming in on a tuesday and looking at turkish lira. this is an important currency that we have been looking at for the last couple of weeks and months. it is one that tom keene was all over. this is pretty amazing, a five-year regression. if you look at turkish lira, it is something that has been moving significantly and you can see it is moving today. if you look at the lira and its longest losing streak against the dollar, there is a chart we will bring up for you and it is looking at short-term currency rates pushing to new highs as a prospect of higher u.s. interest rates. that is a five-year regression. something that we will push out of course on the terminal. and as a your colleagues at the tuesday morning meeting. let's get to the bloomberg first word news. nejra: u.s. oil prices have fallen back after donald trump tweeted that he would announce a decision on the iran nuclear .eal today germany, france and u.k. have lobbied the president to remain in the agree

in london, francine lacqua. like what marcus afterward -- marcus ashworth said, that it was a bit indeterminate right now. francine: the concern is markets were looking at this as a kind of litmus test where the market panic yesterday to see if we were going to get more of that or not. a lot of people are saying we is by. look at who it's all about -- who is buying. therekets really believe can be an italian exit from the euro, we could ask act more pain. -- expect more pain. tom: i think we need team coverage, you and me from rome, the artichoke tour. german two-year yield improving here to a -.70, that is my litmus paper. francine: overall, like us, markets regaining composure. tom: absolutely regaining composure. our first word news in new york, here is taylor riggs. taylor: the white house is racing to prepare for the summit with north korea. the administration says it expects the meeting to take lace, but says denuclearization in north korea has to be on the table for president trump to agree. a u.s. delega

and francine lacqua is in london. about the wedding, but there are some really interesting headlines out. i have got royal wedding favor. francine: i know that you do. tom: i am looking at these headlines out of italy. this is important. translate this, francine. anytime you see the word hope, you circle it with a big yellow pen. paschi -- monte paschi, what is that about? francine: for our listeners and viewers who are just joining us, we have received a text which is the grievance between the league and the five-star about how they will govern italy. they have each been talking about monte paschi. this was the devastated bank under government control. it is listed and the government still has a big stake in it, which is why anything that these two gentlemen talk about has a big impact. yesterday monte paschi was down 8% because they suggested that bankcould re-nationalize -- the bank. today it stands at 3.1%. saying, whatle are are you talking about a bank that is actually ipo, because anything you say will hurt sha

i am francine lacqua.heck what is trending over the bloomberg universe. , it is exemption day for u.s. tariffs. the administration says it will defend its interest. readng to bloomberg.com to about the political turmoil and why merkel thinks europe is the best guarantee for peace. our most read stories, first of all, one story continues to dominate, italian politics. third place, check out the markets live blog with the move in italian debt. second, italy's president tells populists comey when you are ready. why james gorman things george belief on the global crisis is "ridiculous." if the u.k. fails to lay out its position next month, theresa may faces ongoing divisions within her own party on the nature of the divorce, particularly the customs union membership. said the dealor was willy wonka thinking. , the former chairman of the conservative party. still with us, james barty thank you for staring -- james barty. thank you for staying around. do we know what the customs union will look like? >> i do not

i am francine lacqua here in london. is setces -- u.s.de forth sixth day of losses, the largest drop since february, a stark turnaround from earlier in the month after u.s. president trump decided to reimpose sanctions on iran. at what level can we actually find relief? joining us is a bloomberg correspondent and julian returns.orth you have a shale producer looking to balance. we know that saudi arabia wanted to put the price around $80 a barrel, so shale producers worked on $75 for rent. consumers will compare prices more in the $60 to $70 range. now we have a new level. in the past, it was what was the price to make money? now it is -- what price can the consumer afford? francine: how big of a mess is the geo and opec, because you have russia facing problems? javier: it will be quite messy, the june meeting. it is not only opec. we have a group of 24 countries. you need to find an agreement, bigwhen you find the two grown-ups in the room in a way, saudi arabia and russia, making decisions way ahead of the opec meeting, to where we will

he will be speaking to francine lacqua later on. of what he is bernanke week in september, the ecb has been getting closer to ending asset purchases. we will continue to monitor the event. if you would like to monitor the event, live go on your bloomberg .e italy's populist leaders have all but completed a governing plan as they prepare to seek a green light from the president later today. the leaders continue to keep quiet about who they will nominate as prime minister. italian politics remains as fascinating as ever. joining me from rome is kevin costello. kevin, walk me through how close we are, because this definitely keeps getting pushed back, and what happens next. he is not saying he will play ball here. is thethe latest we have two parties will be meeting with him this afternoon or tomorrow. says hela -- motarela will consider, and once he has the plan, he will take point -- he will take time to consider things. guy: could we talk about the plans that the two parties are proposing? about theome concern fact that the ital

nejra: that was francine lacqua speaking exclusively to the bank of france governor in paris.nie: time now for the latest bloomberg business flash. a -- tos started explore the potential sale of assets. the retailer is controlled by a hedge fund manager. he said his hedge fund will be willing to buy a number of sears assets including real estate. it is going to be a management reorganization at tesla. ceo elon musk has told an employee memo that he wants to slap -- slack in the structure of the carmaker. he made the announcement after getting word that the chief of engineering is taking a leave of absence. the only company that manufactures applejack the iphone posted quarter profits that missed estimates. the results are likely to increase fears of the smart phone boom is coming to an end. apple barely sold enough iphone x's to meet wall street's water down expectations. that is your bloomberg business flash. nejra: let's take a look at where european markets are trading as we had to the close. we would not normally show the ftse but we are waiting for italy to form a governm

yorkis tom keene in new and francine lacqua in london. 6, 10 days on brexit. is the u.k. just getting ready for the wedding? francine: indeed, the united kingdom is getting ready for the wedding. there is quite a lot going on in brexit. what is going on is theresa may is getting a hard time from all sides. the scottish parliament is getting involved. there is still no solution to the irish border. we had a little data, and the underlying wage growth was not as strong as expected. tom: we have seen that elsewhere. retail sales in the u.s. later this morning. keepr: hamas has vowed to her testers storming the borders between israel and palestine. 59 palestinians were killed and hundreds more were wounded. theviolence occurred as u.s. was opening its new embassy in jerusalem. palestinians say putting the embassy there undermines their own claim to east jerusalem. setting down for trade talks with china. they may work out a deal on chinese telecom equipment maker the te. -- zte. president trump says he is working to get zte back in business.

i am francine lacqua here in london.s slashing car import duties to 15% following hp truce between beijing and washington. european automakers -- on the cut. for more we are joined by bloomberg's auto reporter in frank for. great to have you -- frankfurt. great to have you on the program. another sign of lessening of trade tensions. >> yes, it is certainly positive news for automakers. talkshas been persistent and indications over the last few weeks and months that the chinese auto market might become more open for foreign investors. this seems like the latest step in that direction. francine: does it actually mean a lot for european automakers? how much do they export to china? do we have any idea of how much more revenue they will gain from this? >> yes, it is especially favorable for the german premium carmakers. they have relatively few local production in place in china, compared to the big market manufacturers. we just actually got a fresh set of estimates from analysts. they have numbers out there saying that -- f

francine lacqua in london. francine, i look at the trip to china, i have never seen it.on going over there to help his president. i would love to be a i would love to be a fly on the wall at that meeting. i don't know whether you speak differently to the chinese but i wonder whether the trump administration will listen to that brief. when i'm looking at in europe, this is significant for a global audience, unexpected inflation slowdown. what that means for ecb policy going forward. tom: totally agree. with what we have seen for capital in the united kingdom, good morning canada. you are focused in winnipeg, forget about that. be focused, canada on first word news. a warning from china before trade talks begin with the u.s. today. beijing says it will not submit to threats from the trump administration. a chinese official says it will not accept u.s. preconditions such as abandoning manufacturing omissions or narrowing trade gaps by $100 billion. a surprise revelation last night about president trump and stormy daniels. the president reimbursed michael coed $130,000 in hu

francine lacqua, there is just no news flow. where do we begin? let's talk turkey. e have an economy meeting coming up. francine: right. this was called by the president. this goes back to what we were quizzing the deputy prime minister in washington about, which is is the central bank really independent. it is quite a move. i am looking at a lot of m&a news, including the media landscape with liberty global selling their access to vodafone. tom: we have appreciation of the west virginia dollar. we will look at that coming up. right now, our first word news. here's taylor riggs. u.s. secretary of state mike pompeo has arrived in north korea to prepare for president trump's summit with kim jong-un. pompeo'speii a'-- second visit there in recent weeks. is said toligarch have met a $500,000 payment to an entity controlled by president trump's lawyer michael cohen. according to the lawyer for stormy daniels, the payment was used to pay hush money to the foreign actress. a&t confirmed it paid cohen consulting fee to provide insight into the trump white house. argentina ha

francine lacqua in london. european brent crude, $80 a barrel. erging markets, on non-dollar-denominated countries. francine: it is also about the trend. it will have an effect. i don't know if it has an effect at $79 or $80 but it could trigger the markets. look at emerging markets -- a lot of them are producers. some of them, in india, consumers, for example. does that hurt consumption of oil? does it drive the price down or do they continue to buy oil, but then it impacts finances? an interesting angle. tom: lots going on. italy, we just heard from kenneth clarke on brexit in the united kingdom. the markets moving. first word news, here is taylor riggs. taylor: president trump showing flexibility on the upcoming summit with kim jong-un. the white house, from john bolton, who proposed a plan in which north korea would propose banning nuclear weapons. north korea threatened to walk away from the summit. top economica's advisor on unfair actions. this weekashington for talks with the administration on resolving the dispute. ahead of the house ways

francine lacqua in london. i am talking in new york. made a today. n today. francine: we have stripes, just , theng people celebrate only day we can sleep in by asking for more holidays and pay. tom: head of global rates strategy at oppenheimerfunds, brian levitt. there is this great summer mystery of technology in america, the impact of technology on our economy and your world. is technology suppressing the real rate? the bottom line, technology feeds into wage growth and all that, is a keeping the real rate down? it feeds into inflation growth. it is freezing productivity breast-feeding productivity. -- it is feeding productivity. actually making a large part of the workforce useless. tom: it is a great earnings season once again. technology is the reason. brian: it is a very good earnings season, not just on the bottom line. not just the tax cut, sales look good. we don't see any cyclical inflation in the u.s. we have a tight labor market, so we are seeing inflationary pressures rise. that is good news at this part of the cycle. it causes a little

francine lacqua in london.♪ this is bloomberg. ♪ taylor: this is "bloomberg surveillance." i am taylor riggs. hyundai has back down under pressure from activist investor elliott management as it has scrapped a controversial $8.8 billion deal between two of its units. sony is turning away from the gadgets that made it famous. the new ceo will unveil a three-year plan tomorrow that mbraces sony's growing reliance on gaming subscriptions. deadpool 2 has taken down the avengers. with a weekend gross of $125 million, slightly less than expected, but the second-highest opening ever for an r-rated movie and ended avengers three-week reign at the top of the box office. tom: thank you so much. it has been dollar, dollar, dollar, dollar. stronger dollar this morning. sterling printing a 1.33 handle. what is amazing is the 5% appreciation on the dollar since april. jim reid with deutsche bank looks at fixed income. what has been pushed aside is the u.s. deficit and all of those pesky options we will see -- auctions we wil

am tom keene.i francine lacqua has the morning off. the finance minister over the weekend saying that the company could disappear this is a result. that. have taken a at one point they were down -- they were down. london markets are closed today. let's get to the first word news with taylor riggs. taylor: boris johnson says it would be a mistake to walk away from the iranian nuclear deal. he writes that it has the fewest disadvantages among options. they are close to a deal. the president has threatened to pull out of a deal by the end of this week. trump's lawyer is leaning against him. rudy giuliani says that such an interview would be a trap. rudy giuliani says that trump wouldn't have to comply with a subpoena if it was issued. that air france will disappear if worker unions keep blocking reform. excessive salary demands could sink the largest airline. aftero quit on friday failing to reach a wage agreement with employees. starbucks are tuning up in a deal. they will pay the coffee shops for the rights to sell starbucks products in

i am francine lacqua with guy johnson in london. about what oil does on the back of that saudi minister. prices start creeping up, it also hurts demand. guy: the big question is going to be, how do the saudi's and russians get out of it? now they are getting to understand what that ultimately looks like. they are worried about demand destruction, they have indicated that. it was interesting, in some ways, opec is acting almost as a central bank year. it is trying to moderate and manage that story. francine: it is interesting to see that the higher price of oil has not really had much of an impact on inflation, because that is a wage growth story. we see a little bit of pressure on the periphery countries like italy, where we can have a cabinet named as soon as today. we are also looking at some concern about spain. with understand there is a vote of confidence. spain it needs a strong and legitimate governance. that get straight to the bloomberg first word news. here is taylor riggs. taylor: north korea is still open to the idea of

spoker today, mark mobius with our colleagues francine lacqua and tom keene and had words of caution americans be up against. >> infrastructure that will shock a lot of americans who have not been there and seen it. i think this will be a game changer when they sit down to talk. tom: when it is a game changer, it is a game changer of [indiscernible] the president is working on getting it done in one week, one month, 2020. what is the timeline of credits and she -- president xi? > >> they will take their time to negotiate with the americans to get the best deal. is one-sided race. you have china with a lawyer -- with one voice. on the u.s. side, you have 200 voices. the chinese negotiators take advantage of that. i think the chinese you back to keep the americans happy. they don't want to create a law. that's richer. francine: is it true intentions? trade tensions if he turns up to be that way. it would be very bad for emerging markets and the world in general. exports are not a big deal for many of these countries for internal growth. that is true in china. exports forrade some count

stay with us for "bloomberg surveillance" with francine lacqua. g. ♪ francine: the u.s. says it won't impose tariffs on china for now. sealing the deal in italy. the populist party agrees on a private minister. france warns them not to put european stability at risk. driving up prices. car will cost people millions of dollars.

we begin with francine lacqua's interview with friends all the l to go home. >> first, we will have tohe net asset personages, as soon as happy, sustained, adjusted inflation is achieved. as i have already said, whether it will end in september or december is not a deep existential question. we were very clear about the second thing, that the first rate hike would come well past the end of the net asset purchase. what i explained is that we will give, probably, additional guidance before the end of the year about the timing of this first rate hike and about its contingency. let me explain about the timing. leastassed, meeting at some quarters, and about the contingency, it will be contingent also on the inflation. and there istable, a clear virtue of our gradual normalization path. we look at data and the economic situation. quarters,u say some could you assume that is six months from the asset purchase, or could it be nine months? >> english is not my native language, but i understand the concern. >> so it could be up to three or four. >> i will not comment more. >> when you look at t

haidi: that was vanguard international managing director james noris speaking to bloomberg's francine lacquah us live and catch up on our interviews on tv . you can also dive into any of the bloomberg functions, plus a join in on the conversation during the show. this is for bloomberg subscribers only. be sure to check it out at tv . this is bloomberg. ♪ haidi: i am haidi lun in sydney. yvonne: i am yvonne man in hong kong. you are watching "daybreak australia." in the us is bad loans to the country's five biggest eight-run banks are $7 billion more than the lenders assessed. for the yearts ended march 20 17 and showed discrepancies triggered large losses as the banks increased provisions. haidi: volkswagen is opening three new factories in china with its local partner sow group as it seeks to step up ownership. there will be focused on suvs and electric vehicles, the fastest-growing segments of china's auto market. yvonne: the japanese owner of chinese soy sauce maker is said to be considering a sale. he is talking to advisors about the level of potential interest in the 100-year-ol

let's begin with francine lacqua interview with the bank of france governor. >> first, we will have toend of the net asset purchases as soon as the path of inflation is fulfilled. i already said whether it will end in september or in december, it is not a deep question. and then we were very clear about the sequencing. we said the first rate hike would come well past the end of this net asset purchases. and what i explained is that we will give probably additional guidance before the end of the year about the timing of this first rate hike and about its contingency. let me explain about the timing well past, meaning at least some quarters, and about the contingency, it will be contingent on the inflation outcome. then we will see exactly how we formulate it. we are predictable but we are, it is a clear virtual of our gradual normalization path. we look at data and the economic situation as it is and will be. >> when you say some quarters, could we assume six months from that asset purchase to normalization, or could it be nine months? >> english is not my native language, but i underst

up next, francine lacqua and open bloomberg: surveillance." francine: trying again.- appointment as prime minister. don't listen to soros. morgan stanley chief executive backs away warnings of a financial crisis as global stocks bounce back. facingn't think we are an existential threat at all. francine: deadline day. brexit braces for a trait offensive from president trump. tariffs are due to come into effect midnight washington time. ♪

i am francine lacqua in london. julia chatterley is in for tom keene.asuries and the possibility of a yield curve inversion and geopolitics. how differenting things can be after a month and a half in terms of the interest rate curve. solid action on the 10-year and 30-year with record amounts coming into the market. sentiment is reflecting globally. francine: the rate pressure from the fed eases. let's get to first word news. taylor: president trump will propose a sweeping effort to lower drug prices today. the plan is designed to increase competition and lower costs. it does not go as far as the president once threatened to have the government negotiate prices directly. united nations secretary-general istonio guterres says he ha confident the u.s. and north korea can reach a historic deal. he told bloomberg it is vital for north korea to get out of what he calls a straitjacket. malaysia, the new prime minister says he is willing to pardon a key opposition politician immediately. expected to take over prime minister was he is released from jail. the co

next, francine lacqua and "bloomberg surveillance." ♪ ♪ francine: erdogan exclusive. as lira hits a record low the president says he will tighten his grip on monetary policy and the central bank. we have to give off the image of a president who is influential in monetary policy. >> you will play a role in monetary policy going forward? is that the big change. >> yes. this may make some uncomfortable, but we have to do. francine: china's vice premier heads to washington, d.c. as president trump defends his decision to help zte. over and out.

you evil and get an ugly bar whilefrom francine look -- francine lacqua. ar. ♪ ♪ francine: this is "bloomberg surveillance." --ning us now guest: we shouldn't read too much into these local elections. governments tend to not do very well in these midterm local elections. we are expecting a different result herein london. london. here in labour expected to do very well here in london. today,inet is meeting the inner core of the cabinet, to hash out a strategy on brexit. on the table is this big question of the customs union strategy that still hasn't been resolved. you've got very different views among the tory party on this, threats about leadership challenges, also some aggressive words from europeans. the threat of no deal still being there. everyone thought we were ok with the transition agreement. ireland and the customs union still stands, so we still have a long way to go before everyone can relax. francine: you can relax on the markets. do you just ignore the politics and focus on fundamentals of economics and the u.k.? >> the different parts of the

francine lacqua in london. bank of england meeting -- is it a dead meeting? morning? francine: you could argue given the economy not expecting a rate increase, it is dead. remember where the market was priced seven weeks ago. 90% pricing in a rate hike at this meeting, talking it down. we had subdued data. now market expecting something in november. look out for how they vote. we have this mpc split. morningr markets this quieter -- em markets quieter this year -- this morning. taylor: president trump thanked kim jong-un for releasing three americans detained. the president welcomed them men early today after they flew on a military plane to base andrews. he was optimistic about the chances of a successful meeting with kim. >> we have a very good chance of doing something meaningful. that,body would've said five years ago, 10 years ago, even one year ago, you would have said that is not possible. taylor: meanwhile, administration officials say the president is leaning toward singapore for the site of the summit. iran now denying it launched an assault on israe

this is "bloomberg surveillance" live from new york, i am tom keene and francine lacqua is in london. the trend of yesterday continues. a stronger dollar. francine: stronger dollar. trying to figure out what is happening in italy. story on the terminal, italian bonds are slumping. anti-establishment parties are struggling to find a government. chatter that they discussed a government debt write-down with billions of euros. making markets nervous. tom: reality headlights when you are running government, different from running for it. italian story with taylor riggs. at forming ad populist government said to be winding down. the head of the anti-migrant league said the negotiations with the five-star movement are in the final stretch. demandsparties made that the european central bank bite off on the $300 billion in debt. is putting a deaf or on optimism for president trump. the regime is threatening to ascel the historic meeting the government criticized the u.s. for what it calls a one-sided demands that north korea give up the nuclear weapons. they canceled talks with south korea ove

i am francine lacqua in london.e have very thin volumes on the market because we have a big memorial day celebration in the u.s. and u.k. stocks are also closed. what i'm looking at is little bit of flavor on the markets. it's a risk on move. trading floors are expecting a little bit more buoyancy. this is what i'm looking at. we make it fresh elections which is why we're seeing a little bit of response in europe. yield,lian 10 year definitely one of our biggest stories of the day. story that opec and russia have already cleared the markets area we will talk about oil slump -- markets. we will talk about wheels slump. wheels -- oil"'s slump. we also have an interview with james noris at 10:30 a.m. london time. here is the first world news. has hadit's a lee populist leaders pull the plug on attempts to form a government. anti-establishment five-star movement said it was considering proposing impeachment of the president. solving he invented at a conspiracy and made a thinly veiled call for new elections. the euro ha

up next is "surveillance" with francine lacqua. she will be joined by jim o'neill. omberg radio. this is bloomberg. ♪ francine: trade truths. trump extends an exemption before the eu, mexico and canada. will u.s. allies really be able to have a permanent deal of? testing the accord while oil holds gains. has a day tomp make a decision on the deal. steve mnuchin tells bloomberg he isn't worried about the bond market ability to handle a reckitt government -- handle a record government following. ♪ francine: good

i am guy johnson and this is francine lacqua.alk about the turkish lira, falling again this morning after the central bank making an emergency rate hike. the president said the country will follow global principles on monetary policy but the message was slightly different a little over a week ago when i spoke to the president. >> we have to give off the image of a president who is in on monetary policies. guy: you will play a role in monetary policy going forward, is that the big change? >> this may make some uncomfortable, but we have to do it. erdogan speaking right here on the 14th. climbdown by president ogan? is he bowing down to the financial markets? he does not strike me as a guy who would do that. >> it is not a different reaction from what you have seen .arlier in the year we had a shot at depreciation in the lira and it needs to be more proactive, needs to preempt markets and raise rates ahead of market expectations, reduce the current account deficit, and pretty much do what volcker did in the u.s. in the 1980's. guy:

francine: up next on "leaders with lacqua," building a world-class business in spain, we talk about thef operating in a country where questions of independence are far from settled. more with jose ignacio galan next. ♪ ♪ francine: spain has been one of the biggest beneficiaries of europe's economic recovery. in january 2018, fitch raised the country's credit rating to a negative after buoyant growth. but spain is also playing host to a seemingly never-ending crisis, the catalonian independence movement dominated the headlines last year after an illegal referendum. and it is still unclear how the state government will resolve the unrest. stalemate has become the watchword in the region, which makes up a fifth of spain's economy. so what does this mean for iberdrola, one of spain's corporate heavyweights? well we are back with jose ignacio galan, chairman and chief executive of iberdrola. how concerned are you about politics in spain affecting investor sentiment? jose: well, the first thing i have to say is spain is already, as you mentioned, is in good shape, already growing at over 3% p

francine: up next on "leaders with lacqua," building a world-class business in spain, we talk about thef operating in a country where questions of independence are far from settled. more with jose ignacio galan next. ♪ ♪ francine: spain has been one of the biggest beneficiaries of europe's economic recovery. in january 2018, fitch raised the country's credit rating to a negative after buoyant growth. but spain is also playing host to a seemingly never-ending crisis, the catalonian independence movement dominated the headlines last year after an illegal referendum. and it is still unclear how the state government will resolve the unrest. stalemate has become the watchword in the region, which makes up a fifth of spain's economy. so what does this mean for iberdrola, one of spain's corporate heavyweights? well we are back with jose ignacio galan, chairman and chief executive of iberdrola. how concerned are you about politics in spain affecting investor sentiment? jose: well, the first thing i have to say is spain is already, as you mentioned, is in good shape, already growing at over 3% p

francine lacqua. as the turkish lira has hit fresh all-time lows against the dollar, euro, and yen. the human heart rejoices from a stumble -- benjamin harvey joins from theis temple -- stumble -- from istanbul. we seem to be in the midst of a currency crisis right now. the lira dropped more than 5%. that is the biggest decline in more than a decade, bigger even the in the aftermath of 2016 coup attempt. guy: the market is pushing for rate rises. what would satisfy the market at this point? you were here last week will we talked to the president. he seems to be indicating the rate would go lower. a 400, 500 point te hike taken off the table. guest: the central bank has always been under immense political pressure, but when the market forces eventually come in some of a have done 500 point hikes in the past. the central bank has essentially taking itself out of the game, especially after president erdogan's comments in london that he would like to take more control over monetary policy, and he is a wel