that household lending margins remain under pressure that seems like a good moment to bring in jeffrey sachs from citi private bank we heard about nordea's results. i want to ask about the recovery is it fully under way for the european banking sector? >> very much so. we're around three years into a five-year recovery when you get a severe sell down you get more than a cyclical upturn as we saw in asia 20 years ago, we're seeing in europe now it started with recapitalizations, so core tier 1 ratios are up 15%. then we had stress testing then we had net interest margins beginning to improve through cost cutting, and then more recently a pick up in loan growth up to 3%. we think next year we're likely to see a further rise in net interest margins as rates begin to pick up and then provisions will gradually be written back. putting that together you have a rational for returns on equity to rise from negative few years ago to current 8% up to around 15% over the next two years. average price to book values, currently 0.8 l0.85, don't refl the current r.o.e. level so we think there's substantial

a special guest jeffrey sachs will join us.y pressure.ssor sachs this is bloomberg. ♪ his is bloomberg. ♪ ♪ tom: good morning, everyone's. we are in westminster, london. of course, the united kingdom in turmoil. as well, turkey. benjamin harvey with us. for years, head of all of our turkey operations working out of a stumble. he is best out of a stumble best out of istanbul. what is the nature of the new erdogan government? reporter: this is very much a what you see is what you get cabinet he has appointed. the changes he's made as a whole paint the picture of a leader who wants no restrictions in his ability to formulate economic it.icy and implement there were moderating influences in the cabinet. those are all gone now. leader of every government is a slave to their foreign exchange, in this case the turkish lira. are we anywhere near where the turkish lira comes a dominating force for mr. erdogan? reporter: not yet, i think. we are still quite a ways away from the levels we seen previously. lira was heading towards five. it

jeffrey sachs, thank you so much. his opinion piece at cnn.com/opinion. >>> the president, king of distractions when he finds himself under pressure from culture wars to blame games. we'll look at the pattern. and new dramatic video out of los angeles. police chasing a suspect out of trader joe's. the only victim killed was actually from a bullet from the police officer. the police chief's emotional reaction to that news next. if you're turning 65, you may be learning about medicare and supplemental insurance. medicare is great, but it doesn't cover everything ...only about 80% of your part b medicare costs. a medicare supplement insurance plan may help cover some of the rest. learn how an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company might be the right choice for you. a free decision guide is a great place to start. call today to request yours. so what makes an aarp medicare supplement plan unique? these are the only medicare supplement plans endorsed by aarp because they meet

jeffrey sachs.schiff, let me talk to you first as the ranking member on the intel committee you know a lot. you've seen a lot of information with what's happening with the russian interference in the 2016 election and beyond. you watched yesterday's press conference. damaging, shameful and cowardly you called it. were you even surprised by what you saw yesterday despite all you know about this president? >> i was surprised and i think many of us thought we lost the capacity to be shocked any more. but it was a stunning betrayal of the country. whether there this compliment on the president, we don't know. we're trying to find out. but he certainly acts like a president that is compromised. and what ultimately matters to the country is how he acts and he acts like the russians have something on him. the only thing i'll say that runs in the opposite direction is that if he were a long time asset of the kgb, as was possibsaid in the "new york" magazine a week ago his handlers would say slow down you'll