is turkey's largest trading partner by far and the biggest investor as well so a recession in turkey would be bad news for many european businesses. european banks especially those in france italy and spain would be hit hard if texas businesses couldn't pay back loans denominated in euro's dollars. that the economic trouble in turkey could also have serious political consequences some experts predict a new set in refugees and warn that domestic extremist groups could try to take advantage of the economic and political turmoil. that the president added one keeps blaming the west for his problems he threatened to turn toward authoritarian states like china and russia turkey might even decide to leave nato. what does economic and political instability in tefillin mean for the rest of the wild. how dangerous is an unstable turkey's i think it's very dangerous i agree the first to lose would be turkey true but maybe the second to lose would be europe it's very close we have to think geographically. there are three point five million syrian refugees in turkey turkish government as a swarm

than turkey is dependent and then we depend on turkey's well being of course we depend on it but we have the better carts and that should be the condition for a fair deal that we are aware of our possibilities and our influence and how much do one needs europe and the west to modernize turkey to stabilize turkey and to get sea economy going again and then these are the conditions for a fair deal and turkish would be interested in it we should be interested in it but we shouldn't make a shift to cheap the of from our actually a good time to to help turkey to get back on the democracy trappy ya first on the economic stability track and then of course. democracy how it works in germany and france i don't think it's realistic to expect that this is the way turkish democracy will look like on the other one in the next years i mean he just it's a country he's a new assault on he's he's almost an autocratic leader said. is no longer going to be honest not all this talk of pious conditionality is not going to be listening he's going to be looking the other way no no he is listening and you

turkey's government violates human rights turkey has arrested german citizens turkey.as we heard. has. prevented german parliamentarians from visiting troops in the field serving for nato in turkey and you'll saying there should be a softly softly approach and also for the sanctions on took as i understand it -- yes i am firstly the softly softly approach. seems to work princes with my colleague dennis you showed was imprisoned on trumped up charges -- no pun intended -- accused of spying simply for doing his job when there are hundreds of others did in prison who don't have a german passport possible is that is did. and and and you know i mean it's it's it's it's it's horrible but i still think. arm that -- we have to somehow at the same time is helping them economic helping turkey economically which important country mustn't break down. and is another reason for this and when a country goes into economic downturns by like in venezuela revolution doesn't happen. that's when people are so busy scrambling for about politics and changing regime it's when. people of more

between the two and between turkey and the united states it includes turkey's purchase of s. four hundred missiles from russia it includes well i mean it's includes differences between the united states and turkey when it comes to syria and actually the whole of the middle east it includes public opinion towards the united states in turkey and public opinion towards turkey in the united states so i would not call it a problem between the presidents idea trick is the u.s. turkey crisis beyond repair at this point or do you think that it can be mended whale to tripes special tides if you want to put it to egomaniacs getting at each other. squarely thing what i think about the two. that's always difficult in particular because they are both determined by. let's see the messy policy consideration in the united states for instance that they have in the elections. and the bible belt the parts store the bible bit is important the it's up in the united states as support for president trump and his party so we'll have this space and i would say that to the the parts store who is of th

and in turkey.le in question would be if you had different leadership with different political rhetoric, whether there would be a shift in the public or if that is the deeply held. >> i agree, i think opinion deadly change which takes me too my next question, something that puzzled me, how countries and political identities are not immutable. we think they are, but they change. finland was considered easter pinion until it became nordic. recent turkey were considered western europe, greece became southern europe in turkey became middle east. with that in mind, turkey now on the question i will take you to is their desire that came up in a couple presentations. with this new trick in mind, maybe a full shocking that turkey is embracing its european partner but i'll ask you how you think it works and if it works. but maybe we will take the opposite order. unico first? >> do you want to go first? >> sure. >> sure. >> i'm happy to go first. >> and very confused. >> the reset with europe is not entirely

but turkey has scenes turkey is not a backwater anymore turkey's economies grow and it is a number of the g twenty if you know it when you actually take a look at the relationship between turkey and not it's the snipers for a century turkey depended on u.s. aid to property economy that is no longer true the largest trading partner that turkey has today is the european union that trade is worth eighty four point seven billion dollars with the united states it's only nine dollars and if you're actually keeping a look at what we're turkey's interests lie. why is much more are we not only you got countries that have been pouring a lot of investments and business into turkey i totally agree that the united states and the mutually need other turkey is in a very rough neighborhood it's in the backyard of russia if borders syria iran and iraq and i have to say here that the united states actually should really can reconsider what its policy and its strategy towards turkey yes right now i don't see the trumpet ministration having a coherent strategy not only to turkey but to the meet middle ea

protection and turkey will reach an agreement with russia. to disband joins the rebel brigade. the group formerly known as al nasra and al qaida syria affiliate arrested deen have not shown any intention to disband turkey was under pressure from its political allies russia and you. eliminate them possibly using syrian rebels. the pressure may now turkey had warned russia and iran that a government offensive in adlib would threaten their political alliance the three countries the main stakeholders in the syrian conflict have been cooperate in through the so-called asked in a process their partnership has recently taken a whole new meaning the united states is the cleared economic war against them cooperation between these main players could stave off a battle that could affect the lives of billions in limited military operation tell there are expected around the edges of the province the government wants to secure a highways and prevent it little be used to attack strongholds. beirut huge crowds gathered in northern yemen for the funerals of p

and turkey are engaged in a period of political tensions makes the situation with turkey worse. >> it'se the situation with greece when the situation was going down, people were like why do we care about greece? it's the high levels of debt ratio to gdp and the current account deficit. how confident are you this will be then contained? >> fairly confident. it's understandable why investors are taking a more cautious approach. that might contain until turkey engages in more traditional types of measures. >> gdp coming out from the eurozone 0.4% for the second quarter. 2.2% annualized. those are not great numbers. not terrible how do you read them >> having not seen the details on the surface that type of annualized number is quite good relative to trend growth just on the surface without seeing details, it puts to rest some concerns we've had about slowing growth >> do you think turkey, the eurozone, the trade spat with china, does that influence or change our federal reserve well, we don't know what will happen with this stuff, let's ratchet it back. >> it's always going to be thinking

deal with turkey all of. this is. to say because it's a german way of looking at things that somehow people states and leaders of states are rational actors they're not look at putin look at trump. look at some of the things our own leadership has done look at greece i mean you know. look at venezuela look at mr maduro rationality does not impinge on politics especially not on autocrats therefore if turkey goes down the drain just turkey the this is will not mean the end of mr i don't just give him an opportunity to ramp up his his autocratic way of dealing with society that everyone i mean it's. people in times of stress people to dictators when they feel a little better they think about democracy that's the way things go and this idea that we're all rational actors is just not borne out by reality so the point is now we are interested that turkey doesn't go down the drain economically that's a prime interest because if it does go down the drain economic everything else goes down the drain now if we help them will th

on turkey tariffs.had tweets from president trump that he will be doubling tariffs on certain metals with turkey. we will keep an eye on this throughout the market reaction . julie: we are watching another volatile market situation. this having to do with tesla. directors of the company are moving ahead with their review of elon musk's bold proposal to take the electric carmaker private. cnbc reporting that directors plan to meet advisers next week and are likely to tell must to recuse himself while they consider his plan. for more, let's get to david welch. david, in the meantime, there is the sort of anti-short quest on the part of elon musk that does not seem to be succeeding. david: no, it doesn't. the shares initially gained quite a bit, but they have given all that back. it really is not driving them to the brink. it did not succeed in the first place either because the shares got as high as 300 $79, which is well short of the $420 buyout offer. the market did not see this whole thing is very cred

guy: turkey turmoil. traders were expecting action from the authorities to stabilize the lira and it did not happen. here we are monday morning. the central bank announces it is providing extra liquidity. the lira briefly rallied but the market signaled it was much more. will the president of turkey delivered today. and contagion. the rand suffers what a crash.nk calls look for south africa to move at the european open. matt: we are less than a half-hour away from stock trading. it was a horrible day on friday. if you were long that is. it looks set to be not a great day today either. here you see futures, index future is not firing -- not falling far but if you look at the asian markets, it is a bloodbath. take a look at what is going on in treasuries. investors are running for c5 in assets. we have for example the u.s. 10 2.86%,eld coming down to 2.87%. everywhere you look, you have gains and safe haven assets like but no lovee swiss for gold. guy: hard to find a safe haven on the gmm. i changed it to p

despite all the negative factors turkey's public sector is still strong turkey does have a high international debt but it's coming mainly from the private sector and the public finances are very sound and as a matter of fact among the soundest in europe as so a total financial meltdown is very unlikely at this moment dittrich why specifically is what's happening in turkey affecting emerging markets the way that it is well but because emerging markets in certain ways in similar situations as turkey is it's a precarious situation you are trying to stimulate economies and there's always the risk that you war beyond rational limits but in turkey this has taken place do you want to the editor or the president therefore there is the risk that others through in order to be affected by the way . we are in europe very much into twined in particular germany with turkey. economy could be and therefore there is also the risk that we buy suffer to a certain extent by far not as much as turkey but to a certain extent we would we expect. at one to visit us in september eleventh serious discussions we are pa

turkey right now? is this on your clients' radar i >> china -- you're talking about 7 to 1 [ inaudible i think what really has occurred in the market, we had a level of kplcomplacency that was develop. we had proprietary metric for watching how investors are positioned, not how they feel. it was edging to 44 would get you to euphoria levels at 42 on friday. it's been edging up over the -- >> this is very cool it's called the panic euphoria index. 44 would be extreme joy. i mean, just dancing through the fields. >> it's more about what the market reaction would be when you get into euphoria level, you have a 70% chance of losing money that's three times the random probability of losing money. if you're in panic levels -- >> too complacent and too happy? the positioning is too happy. >> i was talking with a client last week. he made a comment to me. he says we're worried about x, y and z. i said, well, you're saying you're not worried because you're worried do you understand the double negative the reaso

what you do with turkey?lix: we are seeing the rush and the rest but not as much as we thought. 15%.es were up today they are negative but off the lows of the session. see a 1.10 on it i euro-dollar. the 10 year yield getting a little bit of safe haven not the type of move we saw on friday. oil state pat. david: it is a big story. the question for today is how far it will expand. now it feels like it will not expand quite as far. alix: if you find up -- if you want up having more, what do you have to sell? i do not know if we are there yet. today feels more like we want to look for opportunity. today, the media will get to meet the astronaut scheduled to travel on spacex. 2:00 this afternoon, the congressional budget office releases an update to its economic projections for the next 10 years. on thursday, brexit talks resume in brussels and over the course of the week we will get retail earnings from home depot, macy's, walmart, jcpenney, and nordstrom. we are joined today by bloombergs romaine bostick and pe

through turkey.hat has been signed after the 2015 huge increase in migration flows by turkey has been holding. we have seen, over the past year, the numbers of syrians traveling through turkey increasing. and growing concern within the european union that some of the fighterslamic state that are now trying to find their way back to europe through turkey may be traveling that route. they need important cooperation between the european union and turkey to make sure they stem the flow of those dangerous elements into europe. tom: you are one of the world's experts on the geopolitics of the black sea. what is the price of the president of the united states having an original agenda with turkey, versus other crisis we have seen? what is the price for turkey and the west given that russia is only distant across the black sea? price, important for everyone, turkey's pain a substantial economic price. geopolitically the west more broadly is also suffering from the crisis. turkey is a very important player wi

turkey or would it would it have further consequences. so it is no exaggeration that turkey is moving towards a financial collapse because it's a tragedy how can an economy stabilize the exchange rate and the current account by keeping this high growth rate so there is no signal that there is a political will to reduce the kinds onsen based growth rates at the same time if this collapse comes of course we have a large amount of loans in italy and we know at the same time that italian banks have been in troubles for months just remember after the elections how critical the situation was in europe and if turkey the financial system collapse and turkey the central bank in europe has also again to bail out italian banks and that will trigger a political conflict again and europe so in this bigger picture destabilizing turkey is not in the interest of the european union i don't they are saying thank you very much for this analysis and iran demand remains high for stay healthy out industrial equipment but a growing number of companies of potent

but turkey to his schemes turkey is not a backwater anymore turkey's economies grow and it is a number of the g twenty if you know it when you actually take a look at the relationship between turkey and not it's the it's not between a century turkey depended on u.s. aid to prop up its economy that is no longer true the largest trading partner that turkey has to date is the european union that trade is worth eighty four point seven billion dollars with the united states it's only nine dollars and if you're actually keeping a look at what we're turkey's interests lie. why is much more are we not only you got countries that have been pouring a lot of investments and business into turkey i totally agree that the united states entered the new she needs other turkey is in a very rough neighborhood it's in the backyard of russia if borders syria iran and iraq and i have to say here that the united states actually should really can reconsider what its policy and its strategy towards turkey yes right now i don't see the trumpet ministration having a coherent strategy not only to turkey but to t

here punishing turkey for policy decisions that turkey has taken that the u.s. does not agree with we know that in the past few years they've disagreed on a range of issues from syria as the most recent one turkey continuing to buy natural gas from iran even after the u.s. sanctions were imposed on iran. well i think that is partially correct but i also think that the additional factor is that for years turkey has used the most abusive language against the united states and its leaders and really generated a historic high in anti american sentiment inside a turkey turkey seems to have taken the u.s. for granted for a number of years as if they could play the u.s. for its for their own benefit and that somehow the americans would take it so i think that this one incident which is minor in and of itself is also a test of the relationship or at least two countries going to treat each other with respect focus on their interests are not well erdogan speaking of the relationship has said this he said his country's partnership with the u.s. is in jeopardy and he may st

threatens to impose more sanctions on turkey and the turkish lira tumbles. two palestinians are killed and two hundred seventy others injured and friday's in gaza protests the endian state of carola is facing the worst floods in the century more than three hundred people have died and rescues are ongoing and a carpet star turned politician emraan card is set to be sworn in as prime minister of.

and turkey can end.aet a compromise, complete rupture with devastating consequences for turkey's economy and america's regional strategic interests. either way, no going back to the way things work. that is pretty binary. can you give us a lay of the land and what we will be looking for in erdogan's speech. jennifer: i am sure investors will be looking for some clear signs on what the policy will be that will get the economy back on track. one thing i want to point out, this is not just something that is a problem for turkey, it is bleeding over into european banks. our columnist had a piece today that looked at what the damage there was. alix: and bahrain coming -- barring him saying, we will have a move of 600 basis points, the other option could be looking for a bailout from a imf. what are the other options in what is the reality behind the? >> one thing we have focused on is who is it that is leading the economic policy here. something that has put off investors is that erdogan replaced officials th

many i'm from turkey. so that's putting oil into the fire isn't it. most certainly is i mean the current rout in the currency was triggered by tensions between turkey and the us over the ongoing to tension of an american past they hear this latest announcement it will be seen as pouring more oil on the fire at the liberty attempt to further destabilize the currency but it will just fuel into investors concerns that turkey is increasingly isolated and is facing a potential financial showdown with the most powerful economy in the world which will further fuel fears about the future of the turkish currency serious situation in turkey developing thank you very much story and jones in istanbul. ryanair pilots have begun a coordinated twenty four hour strike across europe germany is likely to be worst hit with two hundred fifty flight cancellations as ten airports pilots in ireland germany belgium sweden and the netherlands have also walked off the job. it's the biggest industrial action ever to hit europe's biggest budget airline the effect is visible here

between the two and between turkey and the united states it includes turkey's purchase of as four hundred missiles from russia it includes well i mean it's includes differences between the united states and turkey even it comes to syria and actually the whole of the middle east it includes public opinion towards the united states in turkey and public opinion towards turkey in the united states so i would not call it a problem between the presidents idea trick is the u.s. turkey crisis beyond repair at this point or do you think that it can be mended whale to tripes special tides if you want to put it to egomaniacs getting at each other a quiet squarely feeing what i think about the two. that's always difficult in particular because they are both determined by. let's see the messy policy consideration in the united states for instance that they have in the elections. and the bible belt the pot store the bible belt it is important they stopped in the united states as support for president trump and his party so we'll have this aspect and i would say that to the the parts store who is of the

and turkey would ultimately be and what that meant for turkey's economy. however, small it may be there were talks in washington this week at the state department between turkey and the u.s. they resolved nothing. they were on trade they were also on the detention of the seven american citizens, including the evangelical pastor, andrew brunson, which the president is following closely. interestingly, where the president tweets this new policy we don't have a press release from the department of commerce which is running this investigation and running this policy and we would expect that would be formalized in that channel. and it also appears to be a somewhat arbitrarily arrived at number we know the president likes big round numbers on trade there needs to be a lot of evidence behind the decision to make policies like this. otherwise it would appear ripe for a challenge at the world trade organization so we'll see what the end game is for that policy and what eventually happens and what commerce eventually says about how it has arrived a the official deci

and turkey.s a market spooked. >> the no side of the turkish lira and stocks have been treating across the globe. when putting his political agenda, president erdogan could long rely on economic growth and that could change. >> turkey's economic boom was fueled by economic standings. the upswing has come to an end. president erdogogan says western countries are waging an out a ad against turkey. alicia's with the u.s. are particularly bad. that is why he is determined to forge a good, ties -- better economic ties with russia and china. even many turks are planning the europe for the relative safety of dollars or euros. despite everyone's desperate plea, to try to s stabilize thee currency. that is taking instaed. lira has been sliding since beginning of the year. losing 39% of israelis since january. that is stoking inflation which recently hit 16%. the crisis also reveals turkey's underlying shortcomings. it is the lack of production, nothing else. thesesthings wouould not work without imports.

crisis in turkey.ens to yet another record low as u.s. president -- on metal tariffs. turkish president erdogan responded by saying his country will not surrender to "economic hitman," urging turks to cash in their hard earned savings to the lira. >> if there is anyone who has dollars, gold, or euros under them tollows, i asking take them into the banks and exchange them with turkish lira. this is going to be the response of my nation to those who are making this move, this hostile move to our country. scarlet: joining us over the phone from istanbul is benjamin harley, bloomberg turkey bureau chief. benjamin, thank you for joining us. obviously, we will look at the financial impact here of the lira's collapse and what it means for not just the turkish market, european markets, and -- u.s. market, but i want to get a sense on the ground of how things are going in istanbul. how are people responding to erdogan encouraging them to convert their currency to the turkish lira, which is rapidly losing value,

that turkey has basically. the means in line to be very successful and to create a boom and what you saw at the beginning of this of the century it was that turkey came out of crisis what with hyper inflation which you don't see right now and after that had a decade of brilliant growth so that there's a lot that still speaks for turkey as you point out what needs to be billed as the trust of the trust and for rockets into turkey it's basically basically that frank kaiser the german chamber of commerce in turkey giving us the insight thank you very much thank you very much. and before we go as more and more countries decriminalize the use and possession of marijuana the market for legal cannabis is growing and the industry has just seen its biggest investment yet u.s. wine and beer maker constellation bought shares worth four billion dollars in pot producer canopy growth the company is based in china where we'd will be legal as of october spending on legal count of his worldwide is expected to more than double t

fred and pop most of turkey still economically strongly linked with turkey to domestic leaf through that three million turks in germany we will try to do our best whether it be enough to have probably the help of the commission the e.u. commission. major pot those like france in the e.u. and people to our business that's all because i hope it depends also on the flexibility on. these participating in this all right we are out of time so we're going to name there because. i want to be optimistic. dietrich. major gun sorry to interrupt what we have run out of time thank you very much we're going to have to leave it there so thanks very much to all our guests osborne look at dietrich von cow and egg skin and thank you too for watching you can see the program again any time by visiting our website al-jazeera dot com and for further discussion go to our facebook page that's facebook dot com forward slash a.j. inside story you can also join the conversation on twitter our handle is at a.j. inside story from name how much influence on the whole team here by for now. the philippines is one of th

who created them turkey did, right?absolutely. >> whose problems are china's right now, who created them? china did. >> absolutely. one thing i wanted to mention was in preparation for this broadcast i looked up the rates of trade between turkey and the eu if turkey really starts to impose sanctions on imports from the united states or imports from the eu retaliates to what's being done, the eu global output is going down by 0.1%, something like that. so this is really inconsequential in the large scheme of things, but strategically, geo politically if we're losing turkey and we were in the process of losing turkey now for years, if we're losing turkey to russia, to china, this is a huge, huge downfall -- would be a downfall of the trump administration. >> right but a choice i would underline that erdogan has made himself. ariel cohen, thanks from the american council. >> i want to make one quick follow-up which is that no dispute in a lot of cases with the ends of the administration the fact is the u.s. -- united state

that may not happen in turkey because turkey is a polarized landscape. i consider turkish president erdogan to be a prototype of populist leaders globally. what that means is for the last 16 years he has been ping turkish society. he has built a base that loves and adores him and that buys iinto his narrative that out to make turkey great again. the base will buy into his new narrative that the sanctions represent an economic attack against turkey, that washington wants erdogan to fail because turk w's adversaries do nt turkey to become great. , partsnately for turk of the population are not necessarily buying into what seality is, but what reality made for them by their populist leader. erdogan's -- sanctions might hurt the economy but they might strengthen his base and power.e rajini: is they way forward to make relations between the two countries improve?t soner: absdrew brunson's release, i don't see how trump will have an agreeable rkeation with tagain. he might push for sanctions until he secures the release of the pastor. rajini: thanks for coming

and turkey in the nato as nato allies isn't good in the first place and that's specifically after turkey decided to purchase s. four hundred missile systems from russia that obviously didn't bode very well with president trump and the white house here so you could say yeah there is some limited concern as of now i would say it's fair to say that the concern is not too big yet since relationships within the nato with the ally or between allies u.s. and turkey are so strange that anyway. and washington thank you. all right let's get the view now from turkey correspondent doreen jones reporting for us in istanbul dorian turkey's foreign minister has said further pressure will only hurt bilateral ties his retaliation but how much worse can relations get while the potential is to get a lot was currently u.s. forces are working with a syrian kurdish militia just across turkey's border turkey considers that militia 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

turkey is tiny. on twitter saying that turkey is worth something like netflix or amazon. it is small. what does that mean for you and me? john bilton is with us from jpmorgan. i want you to explain to us mere mortals, so what? why do we care? john: good morning. you are right that calibration is ever important in looking at these issues. turkey does have domestic factors that are causing this slide. we should be concerned about contagion channels. we should put them into context. if we look at msci emerging 0.5%ts, turkey is around of emerging markets. an make upchina 50% of that. they are growing stable he. should we be concerned about emerging markets generally? a little bit, to the extent that the catalyst that brought problems that turkey is the rebound in the u.s. dollar. we have seen a rebound in the greenback. that means that last year we saw an opportunity for all emerging markets and much of the world economy to appreciate and assets to be generally supported. as we see growth slowdown, the

and turkey now it would not diffuse turkey's current economic problems but that's a separate issue and on that no i want to have these events playing domestically for to an end he's pointing the ping the finger you know for me outside his board us but of course there are very much economic problems. anyway right you're very right about that he's got a very loyal base and he was just reelected to another five year term in june. so he is really not politically salable at this time. most turks based on polling that start that took place before the crisis began but when the lira was already falling remember it's been falling all year but it is fallen more precipitously since the crisis with the u.s. over pastor brunson brunson start it. most turks according to the polling accept that and agreed with president won that the primary problem were conspiratorial. evil outsiders who were imposing. a war on the turkish lira not. and they were not generally blaming present an heir to one's own prophet and on the policies which are the real cause of the problem makowski their joining me live from w

problems turkey is going expected to face going forward but any hope that turkey can turn to moscow and receive pens of billions of dollars in support instead of from the international markets in europe in the u.s. it is seen as illusionary they just russia doesn't have that kind of capital to lend to turkey it has its own problems another possibility is china now china does have deep pockets in moscow and the turkish president has been making comments about how turkey increasingly see parallels with the way china runs its economy and does see that there is possible synergies to be had but even china is expected to balk at the size of the bailout that it would have to give to turkey to sustain its column e. so at the end of the day turkey will have to look to europe and the u.s. to sustain its economy otherwise it is facing a full and a possible complete meltdown in the country briefly before we let you go you've been covering this story all day today the turkish president has not mentioned the name u.s. president donald trump one time in all of his criticism and accusations about the u

member but turkey to his scenes turkey is not a backwater anymore turkey's economy has grown it is a number of the g twenty if you know it when you actually take a look at the relationship between turkey and not it's the it's not between a century turkey depended on u.s. aid to prop up its economy that is no longer true the largest trading partner that turkey has to date is the european union that trade is worth eighty four point seven billion dollars with the united states it's only nine dollars and if you're actually keeping a look at what we're turkey's interests lie. why is much more are we not only you got countries that have been pouring a lot of investments and business into turkey i totally agree that the united states entered the new she needs other turkey is in a very rough neighborhood it's in the backyard of russia if borders syria iran and iraq and i have to say here that the united states actually should really can reconsider what its policy and its strategy towards turkey yes right now i don't see the trumpet ministration having a coherent strategy not only to turkey b

the united states and turkey.o negotiations until a detained released.astor is it signals be standoff between the countries will continue as turkey's financial meltdown spreads to emerging markets. we have a reporter on the ground. the turkish ambassador in turkey requested this meeting with the u.s. officials. what can we expect from the security meeting? pointed --is is a this is a pointed reminder that turkey is fighting a standoff over policy credibility with international u.s.tors, and also the pastor being held in turkey. there were no dramatic results from this meeting. their heels deeper into the ground. while the turkish government was still taking a public position on this, the united states slapped tariffs on aluminum and steel, warning signs they are willing to go further into the conversation. for furtherential to your urination, or even a another set of sanctions -- further deterioration, or even another set of sanctions. anna: how likely will this last? yousef: nothing short of remarkable. this has

'srket close, and turkey crisis. metals, andd oil, caused the biggest emerging market etf to plunge. su keenan has all the action. where do we begin here? su: we started the market higher , and then it was all about turkey. concerns at into trade war concerns. let's go right into the bloomberg. gtv is where you can find our library of charts. the two-year rising faster than the 10 year bonds. it is an inverted yield curve. and short, what it means generally, pain in the near-term theories the financial are being broken and that is an understatement here. doubled tariffs on turkey on friday. president erdogan signaling the finance, lashing out at the u.s. country, heme his says. the lira plunged. turkey took higher rates off the table. while it took steps to bolster its banks, analysts are wondering, was it too little, too late? the lira lost a quarter of its value, pushing down turkish assets, kicking off a selloff. let's go into the u.s. reaction. the market snapshot says it all. mentioned, that punished commodities

against the demonstrators injuring hundreds we'll go live to the romanian capital also coming up turkey's currency in freefall as trade tensions mount between washington and ankara the leader of plunges to record lows after donald trump ramps up tariffs the turkish president says his country would emerge victorious in an economic war. plus a taking charge of one of germany's most storied soccer clubs that can go down five hundred return barossa dortmund to the top of the bundesliga. welcome to the program i marion i haven't seen. hundreds of people have been injured in clashes between police and anti-government protesters in romania tens of thousands rallied in the capital bucharest and in other cities to demand the resignation of the government they blame the ruling social democrats for endemic corruption and low wages thousands of here is remaining ex-pats also joined the protesters ranks base a corruption and poor financial prospects forced them to leave their country. i'm not violence in the romanian capital. leaving hundreds injured. book arrest police fired water cannon and tear gas

even though she does not have a travel ban to enter turkey right now. we will have to see if she will go back or not while top of course is not the only journalist who is arrested in turkey on terrorism charges her husband also is facing similar charges he unlike tolu does not have german citizenship he's a turkish citizen and he's still not allowed to leave the country. what does citizenship what kind of world does that is your place in fact and how journalists in turkey are being treated well yes there are more than one hundred forty journalists still in prison. husband is still in turkey of course that makes the situation difficult for her which is only understandable and of course if you have a german citizenship then the german government can step in but it takes time as we've seen in the case of as we've seen in the case of and also michel the total so it does take time for german government to help activists or journalists get out of the country there are still seven german citizens being politically charged in turkey so it is very difficult for

turkey is going expected to face going forward but any hope that turkey can turn to moscow and receive tens of billions of dollars in support instead of from the international markets in europe in the u.s. it's just seen as illusionary they just russia doesn't have back kind of capital to lend to turkey it has its own problems another possibility is china now china does have deep pockets in moscow and the turkish president has been making comments about how turkey increasingly see parallels with the way china runs its economy and does see that there is possible synergies to be had but even that china is expected to ball at the size of the bailout that it would have to give to turkey to sustain its column e. so at the end of the day turkey will have to look to europe and the u.s. to sustain its economy otherwise it is facing a come the fall and a possible complete meltdown in the country briefly before we let you go you've been covering this story all day today the turkish president has not mentioned the name u.s. president donald trump one time in all of his criticism is accusations ab

contagion emanating from turkey? i don't think so but the question is going to be these waking up from the risks is it going to be that confidence inducing, you know, shock? i don't think so, but that's the risk >> ambassador, what do you make of the geopolitical implications of everything that's happened in the last week, particularly today when the president trump doubled down on his tariffs. taking on china and russia is one thing. turkey is a member of nato, nearly a member of the eu. is this an unprecedented attack on a supposed ally >> i wouldn't call it an attack. i think that first round of sanctions was very mild. it was designed to induce the turks to go ahead and make the deal that they already had agreed to. and mr. erdogan only has one tool in his box and that's his nationalistic image. and he tries to defend the currency with a flag that's not possible. so the truth is the solution to this is to let the pastor go, let the other employees who have been arrested go and do what's right for the economy. so