dollar too on fears of contagion from the turkish lira route. the financial times reported that the ecb's single supervisory mechanism -- bnp paribas and unicredit were exposed to the lira's crime -- plunge. capital investment has driven a strong rebound in the nation's economy in the second quarter as companies turn to technology to cope with the labor shortage. this has growth -- gross domestic product expanded at 1.9%, beating forecast. business spending jumped 1.3% from the first quarter, the biggest increase since the fourth quarter of 2016. in the u.s., donald trump's lawyers continued negotiating with robert mueller over being interviewed. they said to topics remain off the table. the firing of james comey and trump's comments to comey about his investigation of michael flynn. the president's lawyer, rudy giuliana, said he wouldn't say -- cutoff investigation into russian interference in the 2016 campaign. gross's performance has been "disappointing" and it would take time for him to recover from losses in outflows according to the cao --

dollar on fears of contagion from the turkish lira round. ial times reported the sees bbva, bnp paribas has particularly exposed to the lira's plunge. the turkish lira fret -- plunged to a fresh low with concern about souring relations with the u.s. and runaway inflation outweighing a market route. the government said a groep -- set a growth target of less than 4%, down from 5.5%. lost around one third of its value against the u.s. this year. in japan, capital investment drove a strong rebound in japan's economy in the second quarter as companies turn to technology to cope with a labor shortage. -- grossrowth domestic domestic product expanded at an annual rate beating forecast. jumped 1.3%nding from the first quarter, the biggest increase since the fourth quarter of 2016. donald trump's lawyers continue negotiating with robert mueller over being interviewed. two topics remain off the table. fbi director james comey and trump's comments to comey about his investigation of michael flynn. the president's lawyer said if asked, trump would say he

the turkish lira is front and center. central bank taken language around liquidity in the session. clara traders say whatever. -- lira traders say whatever. we keep hitting record low after record low. we are talking about a currency crisis. will it be a financial crisis? investors, analysts saying that there are steps that need to be taken to stem the weakness in the lira. we see contagion, if you can call it that. the ruble continuing to weaken. we have seen it hit its lowest since 2008. meanwhile, the dollar at its strongest in a year. dollar strength against most of g10. 1.14.ble at one of the few g10 currencies gaining against the dollar is the yen. equities, weakness, not as much as friday in the stoxx 600. we are still down by .5%. banks are some of the worst performers. 3%. down unicredit and bear -- and b.n.p. paribas weaker in this session. you might expect defensive groups, like health care, to be gaining. health care is the worst performer in the session. bayer seems to have a lot to do with that. in overlunged

says but this current s'sluys in the turkish lira happened right after a tension between the u.s. president donald trump and the turkish government following the rest of journalist american pastor in turkey and pastor and dr branson he was arrested after the failed coup in two thousand and sixteen based on knowledge of terrorism charges along with some other american nationals who worked in the u.s. consulate in istanbul and the u.s. has been has been asking for do release of these. of these suspects but turkey says the judiciary is ongoing and so judiciary is underway and we have to wait for the results of tests of russian was put under house arrest just a week ago but to us the men's immediate release of pastor bronson that's that was followed by president trump so it's that our relations with turkey is not good these days so and then this tremendous slide in the turkish lira happened that's why president zardari believes that. the stance from the u.s. the u.s. government is the reason against the slide in the turkish era plus the he says that the u.s. government has been threate

stories ahead here not international the turkish lira plummets to a record low after president trump doubles import tariffs on steel from let's face it a nato ally let's talk about that then after the break along with the rest of the news this saturday to. manufacture consent to public wealth. when the room in closest project. with the famous. nor middle of the room. my love hate relationship with the united kingdom. and the love it because it's shambolic and fraudulent. because thousands tens of thousands of people had their lives destroyed by r.b.s. . campaign targeting the b.b.c. has been launched as viewers once again accuse britain's national broadcaster of political bias one of the key centers on the b.b.c.'s treatment of opposition labor party leader jeremy corbett he has faced constant questions over alleged anti semitism in his party people started to use the hash tag b.b.c. switch off. put the claims to the b.b.c. which responded by saying it's proud to be the most trusted news provider and provides exceptional value here's some reaction we got from the u.k. . they perceive

he is asking why the turkish lira was moved to seven. tack from the west to undermine the turkish economy. -- they are going to boycott american goods. i need to run you through a couple of lines that are happening domestically. what we see is business groups come out and put out a statement calling for tighter monetary policy. even though the lira has stabilized, more needs to be done, even in the opinion of local investors. this is no longer about policy credibility abroad. this has become a local story. tom: thank you so much. of these moments, our conversation moments ago in south africa with the trade minister, we see from two foreign ministers right now from russia and turkey. kevin cirilli is in washington. it is extraordinary how people are talking about mercantilism and some form of numeral away from a multilateral world. departmente state ?eact to the kevin: the president will meet with mike pompeo to have this said, john as you bolton has met with the turkish ambassador yesterday. , theorted this last week president erdogan pic

he's referring to the trump administration doubling terrorist attacks many of the turkish lira appears to be pulling back from record lows off of the central bank took emergency measures rising prices are still hurting the turkish people president claims the united states has the lira as retribution for ankara's detention of an american pastor on espionage and terrorism charges washington had already imposed sanctions on turkey and last week announced plans to double import tariffs on turkish elaman human steel since then the turkish lira has lost a quarter of its value there to one says it's part of a plot by the united states to devalue currencies globally meanwhile russian foreign minister sergey lavrov already predicts consequences for the dollar. i'm sure that this grave abuse of the u.s. dollar as a global reserve currency will result in the eventual demise of its role. while many analysts say that international concerns about into one's economic policies are behind the leader as crash the turkish leader speaks of economic terrorism by washington and called on his country to boyc

the turkish lira has lost half its value against the dollar since two thousand and seventeen and as you heard president after one has urged turkish savers to sell their u.s. dollars but turkey analyst. cowen believes people are unlikely to heed that call. only in two weeks the turkish lira last experience the devaluation that came to the level of forty percent or more so i don't know if many people even if they really like the president can survive this new friend many people are selling their turkish euros in order to buy u.s. dollars in order to maximize the interests and to have profits of course in the social media we have also seen some propaganda videos. president had once said and many people even burned they are dollar bank notes so we can not talk about a uniform. form from turkey if if i am not mistaken the bank sector in the construction sector will be affected from this immediately many people may lose their jobs at the route between washington and starting to affect their military ties within the nato alliance a group of turkish lawyers is seeking arrest of several u.s. sol

this is the second time in recent weeks that the turkish president has called on his people to buy the lira to stop its tumble but to no avail turkey has hit its lowest level against the dollar since two thousand and one it has been folding this year on friday it fell another twelve percent to a rate of over six to the dollar. a tweet by u.s. president trump announcing hi a terrorist on turkish steel and aluminum accelerated the leroy's fall but for the market the crux of the country's economic walls lie with the turkish central bank's monetary policy it has repeatedly bucked market expectations and maintained low interest rates as a result economists have questioned the bank's independence critics believe present at all one might have a hold over his country's monetary policy something that is also worrying the eurozone central bank the e.c.b. has expressed concern about some leading european banks exposure to turkish debt according to the financial times some banks could lose money if turkish border was default on loans inflation is also a major problem for turks they are finding it harde

our country prompting mr trump's tariff raising tweet bloomberg reported this morning that the turkish lira is now the worst performing currency of twenty eight team edging out the argentine peso and it may have farther to fall as the end of the easy credit era continues to deflate the turkish economy mr trius latest international confrontation was prompted by the white house imposition of sanctions on turkish officials over the case of a u.s. pastor who has been charged with complicity in a coup attempt against mr heir to watch. and other currency and sanctions news in the region next door to turkey the value of the russian ruble is seguing has hit

mark: there are no positions left in the turkish lira. view, there is little risk award having either a bearish or a bullish position. the market is broken. prices are jumping around. just a flow of a few million can drive it a long way. the market on friday evening felt the crisis in turkey was a long time in coming. there is runaway inflation. the country was not taking the necessary monetary policy. it was like a slow-motion train wreck. the end ofwere up at last week, everyone said this is an indio's -- idiosyncratic situation and it will not be contagion. week of people said this that the fx is affected. the turkish president said he will not hike rates. he will not take any needed steps to stem the tide of the lira. that makes investors nervous. now, investors are feeling vulnerable and nervous. ultimately, they are correct. there is not an economic contagion but at the moment, this is about market contagion and that will continue until turkey takes the concrete measures that are needed. talk to me about what trade is like right now

they should go exchange it for turkish lira is at our banks. this is a national domestic bottle well this will be my people's response to those who have waged an economic war against us. so it's a good of get coverage now of this we have team coverage in fact in istanbul dorian jones is standing by and in washington we have stefan demon's welcome to you both and dorian i'd like to begin with you because we just heard the turkish president saying that his country is in an economic war is it. well listening to the president he says it has nothing to do with financial economic reasons why the currency is on the pressure this is the result of unnamed western powers trying to remove him from power he said they tried to do this two years ago with a military coup they failed now they are trying to use the currency rate. as a new way of removing him from power and he said that this is a new war of liberation to defend the country calling on people to defend the lira by selling there are foreign currency for investors they say this is simply about finan

there is one of the story in town, and all to do with the turkish lira. ter we saw a record low, the lira is still falling. turkey is trying to grapple with its market route. -- rout. we heard from president erdogan earlier today that they should not panic. he said not to forget that we have got our people, our right, our a la -- allah. and the back to markets bloomberg business flash. teslas aboard is forging ahead with its review of elon musk's bold and ambiguous give it to take the carmaker private. directors plan to meet and tell the founder to recuse himself. that is according to cnbc. was of interview, the ceo of softbank's of reports that his company had held talks about helping with the plan. in deutsche bank, christian sewing is going back into growth mode and one specific business in which there are pretty much no hiring limits. the private bank in asia is still recruiting after brady on board 100 relationship managers and support staff. they told bloomberg quote i do not think there is a limits apart from what we can digest. decided to seek appo

ifi we have seen with the turkish lira.i was the governor of the bank of indonesia, i would if i was the governor of the bank of indonesia, iwould raise if i was the governor of the bank of indonesia, i would raise rates a little bit. with weakening currencies, economies are caught between a rock and a hard place. it impacts imports but it also shores up impacts imports but it also shores up the export market. very much so. the curve effect doesn't happen straightaway but it does happen. it makes that sports —— export that more repetitive on a global scale. there is some upside, it can provide a boost to the economy but you have to get through the maelstrom of that period where the currency dry a little bit of inflation and it drives lot of issues for the government and for companies managing their balance sheets. the row between the us and turkey is nowhere near over. turkey's president says the country will boycott us electronic goods. it began with turkey ‘s refusal to release an american pastor. donald trump doubled par

that is what set off the selloff in the turkish lira. not meeting the market expectations of terms of monetary policy and sanctions adding to the lows. look at the volatility. the lira's plummet -- we have not seen this level of currency slump since all the way back in 2001. these are significant moves, unprecedented in terms of the lack of clarity coming from the leaders of turkey and the clear clarity coming from the typing on twitter from trump in terms of sanctions. i want to dig into particular stocks. ofs is always story contagion today and this is why we are seeing the selloff. why these banks? it was reported earlier today that the ecb is worried about these bank exposures to turkey. bbva and spain up by five points i. bnp paribas up by more than 4.5%. we know who has been shorting them. we have been hearing from the man who called the financial crisis and shorted overall in terms of the mortgage loans. you know who it is. he has been shorting unicredit and bbva. he was like why didn't people listen? now they are falling signific

you know to one has also renewed a cool for turks to convert their euros and dollars into turkish lira to strengthen the currency meanwhile analysts hope for the central bank to take action to restore confidence in the lira. in new york a financial correspondent has more on that story nice to see you sophie so is adeline's boy cult likely to have any serious a fact in u.s. companies apple for example was one company that he did target not really funny turkey is simply an important enough to american company especially not to vic companies like apple the apple stock did not react at all in fact it was in the green the entire trading session so investors weren't worried about this threat in the end the american companies and the american economy and the american president just have more leverage so it is an unequal fight if you want to charm can a flake away were damaged in turkey then the other way around and we saw that last week when he wound up tariffs on steel and aluminum turkey has not been a strong position right now so the american tech companies these two these companies that a

we're following the turkish lira today in freefall and it is affecting our market over here. rgely because president trump tweeted this morning he would up the sanctions on turkey, because they are not releasing that christian pastor who is, is in turkey, he is right there, they won't release him. won't let him get out. is there any chance that that pastor will be released and settle the whole problem? >> as a matter of fact there is a chance now the issue has become so dramatic but the issue is not just about the sanctions. the economic management of turkey has been suffering for years in terms of, you were just discussing those incredible loans that turkey has versus huge construction projects, public projects, in addition to the fact that the central bank has been under restraint, not being able to deal with it. there are political, economic problems in turkey that led to this, obviously this last crisis between turkey and the united states over a pastor is now tricking everything else. i feel there is a chance, if washington and ankara will speak about it seriously without

elaman human steel since then the turkish lira has lost a quarter of its value here too and says it's part of a plot by the united states to devalue currencies globally meanwhile russian foreign minister sergey lavrov already predicts consequences for the dollar we didn't. i'm sure that this grave abuse of the u.s. dollar as a global reserve currency will result in the eventual demise of its role. at the slow bits while many analysts say that international concerns about into one's economic policies are behind the leader as crash the turkish leader speaks of economic terrorism by washington and called on his country to boycott u.s. made goods i'm really proud of it we will boycott american electronic products if they have the i phone there is also sam song. you know no one has also renewed a call for turks to convert their euros and dollars into turkish lira to strengthen the currency meanwhile analysts hope for the central bank to take action to restore confidence in the lira. the show must go in new york a financial corresponden

nejra: the turkish lira on a roller coaster ride this morning as the country's central bank announcedist of measures it says will support financial stability and proper functioning of markets. president erdogan has defended the turkish economy, accusing the united states and others of waging war on his country. take us through exactly what the central bank has done today. yousef: the central bank, doing something, but not with the market was hoping for. it was described as something is better than nothing. they are freeing up liquidity, $6 billion worth. the banks have to park less capital with the central bank. they said they will do whatever is necessary to preserve financial stability, but, again, not the interest rate it has been that has been a issue for president erdogan, who said it was a tool for explication over the weekend, and the market reaction tells a powerful story as to the insufficiency of this latest move. cameron: you've got private sector foreign-currency liabilities representing a large percentage of the gdp. they face sanctions from the u.s., which obviously does

are weighing for the on the turkish lira it's reached a record low against the dollar today. guess what it has been have that story for you shortly as well as other business to stay with the news if you get the boot. you. where i come from we have to fight for a free press and was born and raised in a new town of the painter she protests one to the shadow and if you newspapers when official information as attorneys i have worked on the streets of many characters and their problems are always the same fourteen the social inequality a lack of the freedom of the press. corruption weak on the floor to stay silent when it comes to the sounds of the human scene a right to fools who have decided to put their trust in us. my name is jenny harrison and weren't. as the u.s. imposes sanctions on ministers and turkish president of the once common that's over the case of an american pastor held in turkey but it's fresh low inflation a fifteen year high. washington miles new sanctions on iran and western companies and investors are getting cold feet because president trump has threatened t

>> turkish lira gaining ground. authorities making it more difficult for banks to shore the currency. they have done a de facto rate hike, but gone around it by making it more expensive to borrow against the lira. did hike interest rates properly, it would be a major step forward for turkey and we would see a wider e.m. rebound. >> u.s. stocks on a broad-based selloff domineering declines asund the globe, commodities well. materials and energy stocks are the worst performers because we are seeing weakness and metals. >> when you look a lot of the base metals, copper and even the precious metals space in gold, you have to wonder what it is telling you about the economic picture globally, particularly in emerging markets nations and in asia and whether this will be something that is more worrisome in the u.s., as well? getting some outside help. as much as $15 billion in the country. theident erdogan reached rewards of standing by its gulf ally in the diplomatic standoff with saudi arabia. $15 billion will not be a ch

they should go exchange it for turkish lira our banks. i have just authorized a doubling of terrorists on steel and aluminum with respect to turkey as their currency the turkish lira slides rapidly don't work against our very strong dollar . this is a national domestic bottle. this will be my people's response to those who would waste an economic war against us. let's look to. our relation to turkey are not good at this time. also coming up why no pilot striking across europe they want better pay and conditions at the budget airline. when there was the respective sort of movies we talked to all of the pilots and even the old school for discovering truth. and stories coming up but first it's always awkward when your friends fight but when the two friends are nato partners well the world can't help but stop and watch traders two are watching with concern as the united states and turkey swap tit for tat sanctions but while the spat is officially over tariffs at least part of the disagreement seems to stem from refusal to release an american

the turkish lira a new low today. down 7% on lira to the dollar. ain, new all-time lows that's hitting turkish stocks as well the turkish etf, one of the biggest here, the t.u.r. is the ticker it is lower again. it's lost half the value this year and down 11% in extended hours trading. this is the ishares -- this is the u.s. etf that mirrors it in a way. down another 11% watch this space all right. there is your global market setup. let's get to the news and what turkey is trying to do to stop the slide and actions that they are taking today willem frost is there. you have more what they're trying to do so far unsuccessfully to stop the slide. >> that's right, brian, we heard in an interview, the son-in-law of president erdogan he would be unveiling plans this morning involving the state institutions trying to combat this currency crisis what we've had is a small amount -- trying to limit transactions and from the central bank saying they will provide as much liquidity for the banks in turkey as he need that's going to be key, of course, as the bank

the value of the turkish lira is at a fresh record low, as you can see and oui’ lira is at a fresh recordyou can see and our screen, lira is at a fresh record low, as you can see and our screen, against the us dollar. check this out — this year it has lost 40% of its value and turkey's refusal to release the american pastor has worsened relations between the countries. president trump said he would double the steel and aluminium tariffs and on friday the lira have the worst day since the turkish financial crisis in 2001. in response the president said his country was facing an underhand plot as he addressed a rally on sunday. translation: the response to those who wish to create a trade war against the whole world and our country will lead to new alliances. look at this. they increased tariffs on metal and steel. we are a member of the world trade organization. this is not part of the rules of the world trade organization. this cannot be done. strong words from the turkish president. turkey has drafted an action plan to ease financial market concerns and we should see those come into play

a reference to the trumpet ministrations doubling of tariffs on turkish steel and aluminum the turkish lira appears to be pulling back from its record lows said yesterday after the central bank took emergency measures but rising prices they are still hurting turkish consumers. president into one claims the united states has. as retribution for ankara's detention of an american pastor on espionage and terrorism charges washington had already imposed sanctions on turkey and last week announced plans to double import tariffs on turkish elaman human steel since then the turkish lira has lost a quarter of its value there to one says it's part of a plot by the united states to devalue currencies globally meanwhile russian foreign minister sergey lavrov already predicts consequences for the dollar we didn't but. i'm sure that this grave abuse of the u.s. dollar as a global reserve currency will result in the eventual demise of its role. or you will get the slow bits while many analysts say that international concerns about it are ones economic policies are behind the leader as crash the turkish le

turkey concerns have not affected the lira which is rising against the dollar. we are seeing the turkishtock market fall by 3%. turkey announcing further measures to stop offshore speculators shorting the lira. that is why we are seeing the that is why we are seeing the lira ripped out the biggest two-day jump for the turkish currency since 1994. ♪ live from bloomberg's world headquarters in new york, i am julie hyman. bloomberg'sve from european headquarters in london, i am mark barton. julie: time for a bloomberg exclusive. geopolitical concerns like turkey top of mind, investors are raising serious concerns about the future of credit. we are joined now by jason kelly, bloomberg's europe bureau chief. ,ason: i am here with dan zwirn the ceo and cio of arena investors. we share a barber and as you look 10 years out from the financial crisis, i want to get to that but start on the news of turkey. it has been top of mind for investors and there has been quite a reaction. why this reaction? likethe emerging markets many other fixed income markets have had far too much access to capital and

tariffs and the turkish lira into free fall and president are ones urged citizens to defend their currency. change the euros the dollars and the gold that you're keeping beneath your pillows into lira at our banks this is a domestic and national struggle. if the turkish lira is lost half its value against the dollar since twenty seventeen and as you heard the president it won't urge savers to sell the u.s. dollars but turkey list a ten cohen believes people are unlikely to heed that particular call. only in two weeks the turkish lira last experience the devaluation that came to the level of forty percent or more so i don't know if many people even if they really like the president can survive this new friend many people are selling their turkish euros in order to buy u.s. dollars in order to maximize their interests and to have profits of course in the social media we have also seen propaganda videos. president had once said and many people even burned they are dollar bank. so we can not talk about a uniform. form from turkey if if i am not mistaken the bank sector in the construction sect

swear this libretto by design president says he will not raise interest rates to stabilize the turkish lira so with the lira plunging it's unclear whether turkey can meet its debt payments that may potentially be disastrous for the global financial system european banks for example are owed tens of billions of dollars in debt u.s. investors have massive exposure to turkish bonds and stocks some investors are making a fortune betting against turkey others however are panicking and that's where the global risk of contagion rises blue will emerging markets hold two point seven trillion dollars of u.s. dollar denominated debt that needs to be paid off or refinanced by twenty twenty five but they often face the same economic conditions as turkey investors already beginning to flee other emerging economies it isn't clear how deep the contagion will spread some of personalizing the prospect of widespread economic turmoil as the fault of two strong men however others say this is mistaken you know always special considerations no always special facts but when you have just saying i am a capitalist c

the turkish lira has kept on plunging in value. s have caused the currency crisis. president erdogan has accused the us of stabbing turkey, a nato ally, in the back. facebook users in eight south asian countries will be able to watch top—flight spanish football matches for free under a new deal. it's the social media giant's biggest move into sports broadcasting, but the company said it was not about to start a mass buy—up of sports rights. now it's time to look at the stories that are making the headlines in the media across the world. we begin with the guardian, and the struggling turkish lira, which sent tremors through global currency markets amid fears the worsening financial crisis could have a domino effect on other countries. meanwhile, the new york times looks at the russian rouble and how current western sanctions are pushing the currency down to its lowest level in years, as well as having a negative impact on president putin's popularity. the independent says uk firms are finding it difficult to recruit the staff they ne

is just the latest to speak but when we look at the turkish lira when we look at the turkish lira the tumble began with this political dispute between the two cinema just quickly tell me about how people are reacting how they're dealing with it i know that president one is is popular but when people see their money being affected and their livelihoods being affected that's when things can turn against politicians. well as you said president don is very popular he gets fifty two percent in last june elections and people give support to him that this decline in the turkish lira is out of control and it has to has turned out to be politically motivated and people believe that people buy the discourse in a way and also it is this discourse is in a way and partially supported by the economist as well but everybody has to bring food to their home especially when you think about the manufacturers who are who are producing on important but aerials their costs have been higher but when you go to the market we haven't seen the reflections of this decline in the turkish lira when you're buying g

a bit of respite with the turkish lira upholding its value slightly.nging prisons are to be given a total of £10 million to improve security and living conditions, as part of a government drive to tackle drugs and violence in jails. ministers also want to raise leadership standards by sending prison governors to military—style staff colleges. our home affairs correspondent danny shaw reports. how to stop drugs getting into prisons. here is one way. hmp leeds is one of ten prisons where sniffer dogs are being brought in to reduce the amount of drugs smuggled in by prisoners, visitors, and staff. new su bsta nces prisoners, visitors, and staff. new substances such as spice have caused health problems and sparked violence in prisons, volatile places at the best of times. the atmosphere is good. but like everything and anything, things can change. the dynamics of a jail, the dynamics of a wing, can change overnight. maintaining prison buildings is important, too. the government is investing in a programme to replace windows and improved perimeter security

do the same things that are bothering the turkish lira. ce of much greater opportunity going forward in the currency space. vonnie: in other words, are you buying? what are you doing to take advantage of that? thomas: we are buying the lira but we did not wait to buy until the low over a week ago. it was a painful exercise. rarelyoves come along and offer significant opportunities and high returns and general. the turkish lira depreciated drastically, 35%, 40% last year -- this year and went down last year as well, a very undervalued currency. at the same time, despite the president's opposition to high interest rates, the positive carry you get from exposure along the turkish lira currently is in excess of .5%, extraordinary -- 25%, extra ordinary pickup in any currency, even emerging currency. vonnie: give us more strategies you may see. thomas: not everything is positive in a emerging space or emerging currency. that is quite good because if everything is going down, everything looks cheap, you wonder about some exposure. in the case of

turkey to join him as they're importing most of their oil from the two countries so sending the turkish lira further down is just the collateral damage but trump does not care about the turkish president today told donald trump the bullying board work as have others like the canadian prime minister for example what do people on wall street make of the behavior of the u.s. president. well i would say they consider it as pretty effective china and russia are suffering their financial markets are as well as their economies the moscow stuff exchange drifted into a bear market and it might hit their bangs and then look at their economy russia's everett she p. growth hovers between one point eight percent and two point six percent in the absence of any serious restructuring of the economy russia is due to steadily fall behind the rest of the world whose economies are growing at a way higher rates every year looking over to china the trade war couldn't have come at a worse time for the country which is attempting to pick. deb you ation because the growth of the country has been seeing or have been

the turkish lira is plummeting. 0n very bad. the turkish lira is plummeting. lost up to 20% of its value. it would now cost you six lira to buy $1. a year ago you would have got to change from four lira, so it is very bad certainly for cosmopolitan people who want foreign travel, bad for forms cosmopolitan people who want foreign travel, bad forforms buying in foreign currencies, turkish firms also borrowing in foreign currencies, makes it harderfor them to be tailored debt. the president erdogan is not so concerned about that because he realises that his main support this in the rural area does not really care about in foreign travel for a start. they are interested in keeping down the cost of living, and he sees interest rates primarily as the main evil in that rise in the cost of living, again in this rally she has cold them a tool of exploitation that makes the poor poorer and the rich richer. the headlines on bbc news: the manufacturer of one of britain's most popular it is safe after a us court awards huge damages to a man who says it caused his cancer an

to make a reasonable price for the turkish lira right now is difficult. ally put both hands around the market and squeezed. very thin. piotr: absolutely. very thin. what will happen over the next the move higher in the lira is a collapse direction. we have seen the move and other em currencies over the past few years. it is a textbook correction. i think it is too early to declare they are out of the woods. and turkey, russia, germany, how nervous is angela merkel as she approaches october and the elections improve the -- elections in breath area. bevera? concerns.she has 2 the immigration issue. she needs president erdogan onside. she is facing criticism over floods of refugees. coming into germany she needs it erdogan to keep his part of the deal. there is the issue of keeping him and nato, which angela merkel wants to prioritize. no one is suggesting erdogan well -- be the interesting thing. the apprentice for her is to avoid too much of a drift by erdogan into putin's orbit. you can see erdogan reaching out to china, to iran, to a bunch of places, and

they should go exchange it for turkish lira is at our barracks. this is a national domestic battle. this will be my people's response to those who waged an economic war against as. the. president trying to impose sanctions on turkey because of its refusal to allow an american pastor andrew brunson to return to the u.s. try and strengthen the sanctions in a twitter announcement which adds insult to injury in turkey's growing economic crisis. turkey accuses brunson of espionage and terrorist activity despite sustained economic growth the lira has lost more than a third of its value the turkish population is bearing the brunt. of course where frayed our income has less worth and prices are rising for food too that's worrying . the turkish finance minister promised state influence on the central bank would be diminished in a bid to win back investor confidence but it's unclear whether this will have a calming effect on the markets. or work contagion was making the rounds on european stock indices today with traders worry the lira slide could develop into a full fledged european banking

and yet there is a belief among many turkish people that the turkish lira's evaluation isa that the turkish is a western conspiracy? dunne there is a western conspiracy? dunne there is that. president erdogan got elected in june is that. president erdogan got elected injune of is that. president erdogan got elected in june of this is that. president erdogan got elected injune of this year. is that. president erdogan got elected in june of this year. turkey is also sensitive to the political cycle. there are regional elections next march. the first run of addiction is recognising that you have a problem. i think maybe until overnight, until this morning, there are overnight, until this morning, there a re really has overnight, until this morning, there are really has been a reluctance to recognise that the turkish economy is facing issues or that some of this is self—inflicted. is facing issues or that some of this is self-inflicted. it is not just turkey facing issues. already worries about this economic issue spreading to europe, particularly european banks. some european banks are down 3%